ato logo
Search Suggestion:

IT3 Tax-free government pensions or benefits 2023

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

Last updated 24 May 2023

Things you need to know

This question is about certain tax-free government pensions or benefits that you received in 2022–23. For a list of the relevant tax-free government pensions and benefits, see Special circumstances and glossary 2023.

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

Do not include at this question:

  • Australian Government allowances and payments that you have included at question 5
  • Australian Government pensions and allowances that you have included at question 6
  • Australian annuities and superannuation income streams that you have included at question 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 question IT3 – label U, then go to question IT4 Target foreign income 2023, or return to main menu Individual tax return instructions 2023.

Yes

Read on.

What you need to answer 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

To complete this question, follow steps 1 and 2 below.

Step 1

Add up the amount of tax-free pensions or benefits you received during 2022–23.

Step 2

Write the total at question IT3 – label U.

Where to go next

QC71893