Paying tax on a Centrelink payment

Tax may affect your 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, we will let you know when you get a Centrelink payment summary, formerly known as a group certificate, from us.

Having tax withheld from your 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

Your Centrelink payment summary includes information about taxable and tax related Centrelink payments you have received within a financial year.

Payments that are not taxable

All pensions, allowances and benefits are taxable except:

  • ABSTUDY supplementary benefits
  • ABSTUDY, if under 16
  • Assistance for Isolated Children
  • Carer Payment, where both carer and care receiver are under age pension age
  • Carer Allowance
  • Child Care Benefit
  • Child Care Rebate
  • Crisis Payment
  • Disability Support Pension, if under age pension age
  • Disability Wage Supplement, if under age pension age
  • Double Orphan Pension
  • Family Tax Benefit Part A and Part B
  • Fares Allowance
  • Living Away From Home Allowance
  • Mobility Allowance
  • Pension Bonus Scheme
  • Pension Loan Scheme
  • Pensioner Education Supplement
  • Pharmaceutical Allowance
  • Rehabilitation Allowance
  • Remote Area Allowance, offsets Zone Tax Rebate
  • Rent Assistance
  • Stillborn Baby Payment
  • Telephone Allowance
  • Wife Pension for Disability Support Pension wives, if both partners under age pension age
  • Youth Allowance, for students under 16 years of age
  • Youth Disability Supplement

Find out more

Read more about personal taxation advice on the Australian Taxation Office website

Page last updated: 3 November 2016