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INCOME TAX ASSESSMENT ACT 1997 - SECT 52.10

How much of a social security payment is exempt?

             (1)  The table in this section tells you about the income tax treatment of social security payments, other than payments of:

                     (a)  pension bonus and pension bonus bereavement payment; or

                    (aa)  child disability assistance; or

                   (ab)  carer supplement; or

                    (ac)  one-off energy assistance payment under the Social Security Act 1991 ; or

                   (ad)  first 2020 economic support payment under the Social Security Act 1991 ; or

                    (ae)  second 2020 economic support payment under the Social Security Act 1991 ; or

                   (ba)  2006 one-off payment to older Australians; or

                  (baa)  2007 one-off payment to older Australians; or

                 (bab)  2008 one-off payment to older Australians; or

                   (bb)  payments under a scheme referred to in subsection (1CB); or

                     (c)  one-off payment to carers (carer payment related); or

                     (d)  one-off payment to carers (carer allowance related); or

                     (e)  2005 one-off payment to carers (carer payment related); or

                      (f)  2005 one-off payment to carers (carer service pension related); or

                     (g)  2005 one-off payment to carers (carer allowance related); or

                     (h)  2006 one-off payment to carers (carer payment related); or

                      (i)  2006 one-off payment to carers (wife pension related); or

                      (j)  2006 one-off payment to carers (partner service pension related); or

                     (k)  2006 one-off payment to carers (carer service pension related); or

                      (l)  2006 one-off payment to carers (carer allowance related); or

                    (m)  2007 one-off payment to carers (carer payment related); or

                     (n)  2007 one-off payment to carers (wife pension related); or

                     (o)  2007 one-off payment to carers (partner service pension related); or

                     (p)  2007 one-off payment to carers (carer service pension related); or

                     (q)  2007 one-off payment to carers (carer allowance related); or

                      (r)  2008 one-off payment to carers (carer payment related); or

                      (s)  2008 one-off payment to carers (wife pension related); or

                      (t)  2008 one-off payment to carers (partner service pension related); or

                     (u)  2008 one-off payment to carers (carer service pension related); or

                     (v)  2008 one-off payment to carers (carer allowance related); or

                    (w)  payments under a scheme referred to in subsection (1E); or

                   (wa)  payments under the Social Security Act 1991 referred to in subsection (1EA); or

                     (x)  economic security strategy payment under the Social Security Act 1991 ; or

                     (y)  training and learning bonus under the Social Security Act 1991 ; or

                    (za)  education entry payment supplement under the Social Security Act 1991 ; or

                   (zb)  clean energy payments under the Social Security Act 1991 .

Note:          Section 52-40 sets out the provisions of the Social Security Act 1991 under which the payments are made.

          (1A)  Payments of pension bonus and pension bonus bereavement payment under Part 2.2A of the Social Security Act 1991 are exempt from income tax.

       (1AA)  Child disability assistance under Part 2.19AA of the Social Security Act 1991 is exempt from income tax.

       (1AB)  Carer supplement under Part 2.19B of the Social Security Act 1991 is exempt from income tax.

       (1AC)  One-off energy assistance payments under Part 2.6 of the Social Security Act 1991 are exempt from income tax.

       (1AD)  One-off energy assistance payments under Part 2.6A of the Social Security Act 1991 are exempt from income tax.

          (1B)  The following payments are exempt from income tax:

                     (a)  first 2020 economic support payments under Division 1 of Part 2.6B of the Social Security Act 1991 ;

                     (b)  second 2020 economic support payments under Division 2 of Part 2.6B of the Social Security Act 1991 .

       (1CA)  The following payments under the Social Security Act 1991 are exempt from income tax:

                     (a)  2006 one-off payment to older Australians (see Division 2 of Part 2.2B of that Act);

                     (b)  2007 one-off payment to older Australians (see Division 3 of Part 2.2B of that Act);

                     (c)  2008 one-off payment to older Australians (see Division 4 of Part 2.2B of that Act).

        (1CB)  Payments to older Australians under the following schemes are exempt from income tax:

                     (a)  a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ;

                     (b)  a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 ;

                     (c)  a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 .

          (1D)  The following payments under the Social Security Act 1991 are exempt from income tax:

                     (a)  one-off payment to carers (carer payment related) (see Division 1 of Part 2.5A of that Act);

                     (b)  one-off payment to carers (carer allowance related) (see Division 1 of Part 2.19A of that Act);

                     (c)  2005 one-off payment to carers (carer payment related) (see Division 2 of Part 2.5A of that Act);

                     (d)  2005 one-off payment to carers (carer service pension related) (see Division 3 of Part 2.5A of that Act);

                     (e)  2005 one-off payment to carers (carer allowance related) (see Division 2 of Part 2.19A of that Act);

                      (f)  2006 one-off payment to carers (carer payment related) (see Division 4 of Part 2.5A of that Act);

                     (g)  2006 one-off payment to carers (wife pension related) (see Division 5 of Part 2.5A of that Act);

                     (h)  2006 one-off payment to carers (partner service pension related) (see Division 6 of Part 2.5A of that Act);

                      (i)  2006 one-off payment to carers (carer service pension related) (see Division 7 of Part 2.5A of that Act); or

                      (j)  2006 one-off payment to carers (carer allowance related) (see Division 3 of Part 2.19A of that Act);

                     (k)  2007 one-off payment to carers (carer payment related) (see Division 8 of Part 2.5A of that Act);

                      (l)  2007 one-off payment to carers (wife pension related) (see Division 9 of Part 2.5A of that Act);

                    (m)  2007 one-off payment to carers (partner service pension related) (see Division 10 of Part 2.5A of that Act);

                     (n)  2007 one-off payment to carers (carer service pension related) (see Division 11 of Part 2.5A of that Act);

                     (o)  2007 one-off payment to carers (carer allowance related) (see Division 4 of Part 2.19A of that Act);

                     (p)  2008 one-off payment to carers (carer payment related) (see Division 12 of Part 2.5A of that Act);

                     (q)  2008 one-off payment to carers (wife pension related) (see Division 13 of Part 2.5A of that Act);

                      (r)  2008 one-off payment to carers (partner service pension related) (see Division 14 of Part 2.5A of that Act);

                      (s)  2008 one-off payment to carers (carer service pension related) (see Division 15 of Part 2.5A of that Act);

                      (t)  2008 one-off payment to carers (carer allowance related) (see Division 5 of Part 2.19A of that Act).

          (1E)  Payments to carers under the following schemes are exempt from income tax:

                     (a)  a scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families--One-off Payments) Act 2004 ;

                     (b)  a scheme determined under Schedule 2 to the Social Security Legislation Amendment (One-off Payments for Carers) Act 2005 ;

                     (c)  a scheme determined under Schedule 4 to the Social Security and Veterans' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ;

                     (d)  a scheme determined under Schedule 4 to the Social Security and Veterans' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 ;

                     (e)  a scheme determined under Schedule 4 to the Social Security and Veterans' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 .

           (1F)  Economic security strategy payment under the Social Security Act 1991 is exempt from income tax.

          (1G)  Training and learning bonus under the Social Security Act 1991 is exempt from income tax.

           (1J)  Education entry payment supplement under the Social Security Act 1991 is exempt from income tax.

          (1K)  Australian Victim of Terrorism Overseas Payment under Part 2.24AA the Social Security Act 1991 is exempt from income tax.

          (1L)  Clean energy payments under the Social Security Act 1991 are exempt from income tax.

             (2)  Expressions used in this Subdivision that are also used in the Social Security Act 1991 have the same meaning as in that Act.

             (3)  Ordinary payment means a payment other than a payment made because of a person's death.



Income tax treatment of social security payments

Item

Payment

Case 1

Case 2

Case 3

Case 4

1.1

Advance pharmaceutical supplement

Exempt

Exempt

Not applicable

Not applicable

2.1

Age pension

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

2AA.1

Australian Government Disaster Recovery Payment

Exempt

Exempt

Not applicable

Not applicable

2A.1

Austudy payment

Supplementary amount is exempt (see section 52-15)

Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount (see section 52-30)

3A.1

Carer allowance

Exempt

Exempt

Exempt

Exempt

4.1

Carer payment :

you are pension age or over

Supplementary amount is exempt (see section 52-15)

Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)

Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52- 35)

Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52- 25)

4.2

Carer payment:

the care receiver or any of the care receivers is pension age or over

Supplementary amount is exempt (see section 52-15)

Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)

Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52- 35)

Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52- 25)

4.3

Carer payment:

both you and the care receiver or all of the care receivers are under pension age

Exempt

Exempt

Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52- 35)

Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52- 25)

4.4

Carer payment:

you are under pension age and any of the care receivers has died

Exempt

Exempt

Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52- 35)

Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52- 25)

5.1

Crisis payment

Exempt

Exempt

Not applicable

Not applicable

6.1

Disability support pension : you are pension age or over

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

6.2

Disability support pension : you are under pension age

Exempt

Exempt

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

9.1

Double orphan pension

Exempt

Exempt

Exempt

Not applicable

13A.1

Fares allowance

Exempt

Exempt

Not applicable

Not applicable

14.1

Jobseeker payment

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52-30)

15.1

Mature age allowance (paid under Part 2.12A)

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

16.1

Mature age allowance (paid under Part 2.12B)

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52-30)

17.1

Mature age partner allowance

Supplementary amount is exempt
(see section 52-15)

Supplementary amount is exempt
(see section 52-15)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

18.1

Mobility allowance

Exempt

Exempt

Not applicable

Not applicable

21A.1

Parenting payment (benefit PP (partnered))

Supplementary amount is exempt (see section 52-15)

Supplementary amount is exempt (see section 52-15)

Exempt

Exempt up to the tax-free amount (see section 52-30)

21A.3

Parenting payment (pension PP (single))

Supplementary amount is exempt (see section 52-15)

Supplementary amount is exempt (see section 52-15)

Exempt

Not applicable

22.1

Partner allowance

Supplementary amount is exempt
(see section 52-15)

Supplementary amount is exempt
(see section 52-15)

Exempt

Exempt up to the tax-free amount
(see section 52-30)

22A.1

Pensioner education supplement

Exempt

Exempt

Not applicable

Not applicable

22B.1

Energy supplement under Part 2.25B of the Social Security Act 1991

Exempt

Exempt

Not applicable

Not applicable

22C.1

Quarterly pension supplement

Exempt

Exempt

Not applicable

Not applicable

23.1

Sickness allowance

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52-30)

25.1

Special benefit

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52-30)

26.1

Special needs age pension

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

27.1

Special needs disability support pension : you are pension age or over

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

27.2

Special needs disability support pension : you are under pension age

Exempt

Exempt

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

30.1

Special needs wife pension : you are pension age or over

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

30.2

Special needs wife pension : your partner is pension age or over

Supplementary amount is exempt
(see section 52-15)

Supplementary amount, and tax-free amount, are exempt
(see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

30.3

Special needs wife pension : both you and your partner are under pension age

Exempt

Exempt

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

30.4

Special needs wife pension : you are under pension age and your partner has died

Exempt

Exempt

Exempt

Exempt up to the tax-free amount
(see section 52- 25)

31.1

Telephone allowance

Exempt

Exempt

Not applicable

Not applicable

31A.1

Utilities
allowance

Exempt

Exempt

Not applicable

Not applicable

32.1

Widow allowance

Supplementary amount is exempt
(see section 52-15)

Supplementary amount is exempt
(see section 52-15)

Not applicable

Not applicable

35.1

Youth allowance

Supplementary amount is exempt (see section 52-15)

Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)

Exempt

Exempt up to the tax-free amount (see section 52-30)

Note:          A reference in this table to jobseeker payment or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act). Other payments referred to in this table (such as advance pharmaceutical supplement) might also be payable to a person who is receiving farm household allowance.




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