Income tests

Income tests and your tax return

We use items from your tax return when applying income tests.

Ensure that you complete all items that apply to you in the income tests section of your tax return.

If you have a spouse, you should also include your spouse's income in the Spouse details section of your tax return.

When income tests apply

We use income tests to work out whether tax offsets and other items apply to you.

Tax offsets include:

• invalid and invalid carer tax offset
• seniors and pensioners tax offset
• Medicare levy surcharge (lump sum payment in arrears) tax offset
• spouse super contributions tax offset
• private health insurance tax offset.

Other items include:

• private health insurance liability
• Medicare levy surcharge threshold calculation
• government super co-contribution
• a deduction for your personal super contributions
• a deduction for your business losses (non-commercial losses)
• income tax concessions available to participants in certain employee share schemes
• study and training support loan repayments.

We use the family income threshold to assess most offsets, benefits and obligations.

Adjusted taxable income

Your adjusted taxable income (ATI) affects your entitlement to any dependant tax offset.

Use the calculator to work out your ATI.

Income tests calculator

To manually work out your ATI, add the following amounts together and subtract any child support you pay:

• taxable income (your assessable income minus deductions), disregarding any assessable First Home Super Saver (FHSS) released amount
• adjusted fringe benefits total, which is the sum of  
  • reportable fringe benefits amounts received from employers exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986, multiplied by 0.53
  • reportable fringe benefits amounts from employers not exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986
• target foreign income (includes any income earned from overseas that is not already included in your taxable income or received in the form of a fringe benefit)
• total net investment loss (includes both net financial investment loss and net rental property loss)
• tax-free government pensions or benefits (includes certain disability pensions, carer payments and defence pensions)
• reportable super contributions (includes both reportable employer super contributions and deductible personal super contributions).

Rebate income

We work out what we call 'rebate income' to determine whether you are eligible for the seniors and pensioners tax offset (SAPTO).

If you want to work it out yourself, use the calculator.

Income tests calculator

Your rebate income is the total of your taxable income (disregarding your assessable First home super saver released amount), plus the following amounts if they apply to you:

• reportable super contributions (includes both reportable employer super contributions and deductible personal super contributions)
• total net investment loss (includes both net financial investment loss and net rental property loss)
• adjusted fringe benefits total, which is the sum of  
  • reportable fringe benefits amounts received from employers exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986, multiplied by 0.53
  • reportable fringe benefits amounts from employers not exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986.

Income for Medicare levy surcharge purposes

We use your income for Medicare levy surcharge (MLS) purposes to work out if you have to pay the MLS and the rate you will pay.

Use the calculator to work out your income for MLS purposes.

Income tests calculator

Alternatively, you can manually calculate your income for MLS purposes.

Study and training support loan repayment income

Study and training support loan repayment income includes your:

• taxable income (your assessable income minus deductions), disregarding any assessable First home super saver released amount
• total net investment loss (includes both net financial investment loss and net rental property loss)
• reportable fringe benefits amount, as reported on your income statement or payment summary
• reportable super contributions (includes both reportable employer super contributions and deductible personal super contributions).

This applies to the:

• Higher Education Loan Program (HELP)
• Student Start-up Loan (SSL)
• ABSTUDY Student Start-up Loan (ABSTUDY SSL)
• VET Student Loan (VSL)
• Australian Apprenticeship Support Loan (AASL) formerly known as Trade Support Loan (TSL)
• Student Financial Supplement Scheme (SFSS).

Super income tests

Reportable employer super contributions are included in the income tests for the following:

• spouse super contributions tax offset
• government super co-contribution
• deduction for personal super contributions.