Paying tax on a Centrelink payment
Paying tax on your payment
If your only income during the financial year is your Centrelink pension or allowance, there are tax offsets to ensure that you do not have to pay tax.
If you get a pension and you have other income within the allowable limit, you are also not liable for tax, except in very special circumstances. If you are affected by these circumstances, you will be told when you get a PAYG Payment Summary - Individual Non-Business (formerly known as a group certificate) from us.
Having tax withheld from you payment
We can arrange for tax to be withheld from your fortnightly payments if you wish. The Australian Taxation Office can tell you how much tax should be withheld.
Statement of earnings or Payment Summary
The Centrelink payment summary provides information about the taxable payments you have received for the financial year.
If you need to lodge an income tax return and use the ATO's e-tax lodgement service or a registered tax agent, then the pre-fill service will automatically have Centrelink income information.
Payment Summaries are no longer automatically sent - you can view or request a copy of your Centrelink payment summary through:
- Express Plus mobile apps
- Centrelink Online Services
- self service terminals at our services centres
- calling your usual payment line - when prompted say 'payment summary' and follow the directions
Payments that are not taxable
All pensions, allowances and benefits are taxable except:
- ABSTUDY supplementary benefits
- ABSTUDY (if under 16)
- Assistance for Isolated Children
- Family Tax Benefit Part A and Part B
- Carer Payment (where both carer and care receiver are under Age Pension age)
- Carer Allowance
- Crisis Payment
- Disability Support Pension (if under Age Pension age)
- Disability Wage Supplement (if under Age Pension age)
- Double Orphan Pension
- Fares Allowance
- Living Away From Home Allowance
- Baby Bonus
- Maternity Immunisation Allowance
- Mobility Allowance
- Pharmaceutical Allowance
- Pension Bonus Scheme
- Pension Loan Scheme
- Pensioner Education Supplement
- Rehabilitation Allowance
- Remote Area Allowance (offsets Zone Tax Rebate)
- Rent Assistance
- Student Financial Supplement Scheme (no longer available)
- Telephone Allowance
- Wife Pension for Disability Support Pension wives (if both partners under Age Pension age)
- Youth Allowance (if under 16 and a student)
- Youth Disability Supplement.
Find out more
For personal taxation advice, contact the Australian Taxation Office.