ato logo
Search Suggestion:

IT3 Tax-free government pensions or benefits 2021

Complete question IT3 to include certain tax-free government pensions or benefits you received.

Last updated 26 May 2021

This question is about certain tax-free government pensions or benefits that you received in 2020–21. For a list of the relevant tax-free government pensions and benefits, see Special circumstances and glossary 2021.

If you are still unsure whether your pension or benefit is tax-free, phone 13 28 61, or contact the agency that paid you.

Do not include at this item:

  • Australian Government allowances and payments that you have included at item 5
  • Australian Government pensions and allowances that you have included at item 6
  • Australian annuities and superannuation income streams that you have included at item 7.

Did you receive a tax-free government pension or benefit that is listed in the Special circumstances and glossary section?

No

Write 0 at U item IT3, then go to question IT4 Target foreign income 2021, or return to main menu Individual tax return instructions 2021.

Yes

Read on.

Answering this question

You do not pay income tax on tax-free government pensions and benefits; however, those pensions and benefits are taken into account when working out your adjusted taxable income. Your adjusted taxable income is an income test we use to work out your eligibility for certain tax offsets and the amount of those offsets.

Completing your tax return

Step 1

Add up the amount of tax-free pensions or benefits you received during 2020–21.

Step 2

Write the total at U item IT3.

Where to go next

QC64755