This question is about the following Australian Government payments:
- JobSeeker payment
- youth allowance
- Austudy payment
- parenting payment (partnered)
- partner allowance
- sickness allowance
- special benefit
- widow allowance
- farm household allowance
- an education payment of any of the following when you were 16 years old or older
- ABSTUDY living allowance
- payment under the Veterans' Children Education Scheme
- payment under the Military Rehabilitation and Compensation Act Education and Training Scheme 2004, shown as 'MRCA Education Allowance' on your PAYG payment summary – individual non-business
- other taxable Commonwealth education or training payments shown on your payment summary
- youth disability supplement as a component of
- youth allowance
- ABSTUDY living allowance
- an income support component from a Community Development Employment Project (CDEP) shown as 'Community Development Employment Projects (CDEP) payments' on your PAYG payment summary – individual non-business
- a CDEP scheme participant supplement
- disaster recovery allowance (but not in relation to 2019–20 bushfires)
- disaster income support allowance for special category visa (subclass 444) holders (but not in relation to 2019–20 bushfires).
Do not include any Australian Government allowances and payments that are not taxable. For a list of the most common types of exempt Australian Government allowances and payments, see Amounts that you do not pay tax on 2021.
You may need to show the amounts that are not taxable at item IT3 Tax-free government pensions or benefits 2021.
Do not include any parental leave payments or dad-and-partner payments; show these at 1 Salary or wages 2021.
Show at 24 Other income 2021 the balance of the amount for emergency and general assistance payments shown on your Centrelink PAYG payment summary.
Do not include any COVID-19 Disaster Payments paid to provide support to individuals who are unable to earn income because state or territory health orders prevent them working in their usual employment.
Did you receive any of the payments listed above?
No |
Go to question 6 Australian Government pensions and allowances 2021, or return to main menu Individual tax return instructions 2021. |
Yes |
Read below. |
Record keeping
Keep all statements and payment summaries with your records.
Beneficiary tax offset
You may be entitled to a tax offset on this income.
Tax offsets reduce the amount of tax you have to pay.
If you received one or more of the payments listed above, you may be entitled to a beneficiary tax offset. You do not have to work out your tax offset. We work it out for you from the answers you give at this item. If you want to work out your beneficiary tax offset, you can use the Beneficiary tax offset and seniors and pensioners tax offset calculator.
If you are eligible for both the seniors and pensioners tax offset and the beneficiary tax offset, you are entitled to receive only one of these offsets. We will work out which one gives you the highest tax offset.
Answering this question
You will need:
- your PAYG payment summary – individual non-business, or
- a letter from the agency that paid your allowance or payment stating the amount you received.
If you have not received this information or you have lost it, contact the agency that paid you.
Completing your tax return
Step 1
Add up the tax withheld shown on each of your payment summaries and letters.
Write the total under Tax withheld at the left of A item 5.
Step 2
Add up the income shown on each of your payment summaries and letters.
Write the total at A item 5.
Where to go next
- Go to question 6 Australian Government pensions and allowances 2021.
- Return to main menu Individual tax return instructions 2021.
- Go back to question 4 Employment termination payments (ETP) 2021.