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Rebate income

Taxable income

Exempt income

This page contains general information to help you calculate your rebate income and taxable income. For more comprehensive information:

Rebate income

Rebate income is used to determine whether you are eligible for and the amount of the seniors and pensioners tax offset. Rebate income does not affect the way you calculate your taxable income or assessable income.

Your rebate income is your taxable income plus the following amounts if they apply to you:

Note: You can use the Income tests calculator to work out your rebate income. For more information about rebate income search for ‘income tests’ on our website.

Reportable employer superannuation contributions are contributions that:

Reportable employer superannuation contributions will be shown on your PAYG payment summary – individual non-business, PAYG payment summary – foreign employment and PAYG payment summary – business and personal services income.

Financial investment includes income and deductions for the following types of investment:

Net rental property loss is losses against all your rental property income. It includes Australian rent, foreign rent and your share of any rent that you receive as a partner in a partnership.

Taxable income

Your taxable income is your assessable income from all sources less allowable deductions. This includes any taxable pension that is shown on your payment summary plus other types of income, such as bank interest, taxable unit trust distributions, dividends, wages and most foreign pensions. It also includes employment termination payments and net capital gains. It does not include exempt income.

Assessable income is the income that you have to pay tax on and includes:

Assessable income doesn't include windfalls like gifts from family and friends and lotto wins. It also excludes income that is exempted by a tax law, for example some pensions, scholarships, and defence force payments.

Allowable deductions include work-related expenses, investment-related expenses, rental expenses, deductible gifts and donations, and the cost of managing your tax affairs. They exclude private expenses like child minding costs and most home to work travel.

Basic rules for deductions:

You must have incurred the expense in the relevant year of income (for example to claim a deduction in your 2013 income tax return, you must have incurred the expense between 1 July 2012 and 30 June 2013).

Exempt income

Exempt Australian Government pensions, allowances and payments

The following pensions and allowances are exempt:

Lump sum bereavement payments received as part of any of the above payments are exempt only up to the tax-free amount.

Exempt Australian Government education payments

The following education payments are exempt:

Other exempt Australian Government payments

The following payments are exempt:

Exempt Defence Force and United Nations payments

The following Defence Force and United Nations payments are exempt:

Other exempt payments

The following payments are exempt:

Non-assessable non-exempt income

Tax-free income for temporary residents

If you are a temporary resident your foreign income is non-assessable non exempt income, except income you earn from your employment overseas for short periods while you are a temporary resident.

You are a temporary resident if:

If, at any time on or after 6 April 2006, you have been an Australian resident for tax purposes but not a temporary resident, you will not be entitled to the temporary resident exemptions from that time, even if you later held a temporary visa.

Other payments that you do not pay tax on

Age-pension age

The following table provides the pension age of men for Centrelink and the Department of Veterans' Affairs purposes.

Period within which the man was born (both dates inclusive)

Pension Age for Centrelink

Pension Age for Department of Veterans' Affairs

Before 1 July 1952

65 years

60 years
1 July 1952 - 31 December 1953 65.5 years  
1 January 1954 - 30 June 1955 66 years  
1 July 1955 - 31 December 1956 66.5 years  
1 January 1957 67 years  

The following tables provide the pension age of women for Centrelink and the Department of Veterans' Affairs purposes.

TABLE A

Period within which the woman was born (both dates inclusive)

Pension Age for Centrelink

Before 1 July 1935

60 years

1 July 1935 - 31 December 1936

60.5 years

1 January 1937 - 30 June 1938

61 years

1 July 1938 - 31 December 1939

61.5 years

1 January 1940 - 30 June 1941

62 years

1 July 1941 - 31 December 1942

62.5 years

1 January 1943 - 30 June 1944

63 years

1 July 1944 - 31 December 1945

63.5 years

1 January 1946 - 30 June 1947

64 years

1 July 1947 - 31 December 1948

64.5 years

1 January 1949 - 30 June 1952

65 years

1 July 1952 - 31 December 1953

65.5 years

1 January 1954 - 30 June 1955

66 years

1 July 1955 - 31 December 1956

66.5 years

1 January 1957

67 years

TABLE B

Period within which the woman was born (both dates inclusive)

Pension Age for Department of Veterans' Affairs

Before 1 July 1940

55 years

From 1 July 1940 to 31 December 1941

55 years and 6 months

From 1 January 1942 to 30 June 1943

56 years

From 1 July 1943 to 31 December 1944

56 years and 6 months

From 1 January 1945 to 30 June 1946

57 years

From 1 July 1946 to 31 December 1947

57 years and 6 months

From 1 January 1948 to 30 June 1949

58 years

From 1 July 1949 to 31 December 1950

58 years and 6 months

From 1 January 1951 to 30 June 1952

59 years

From 1 July 1952 to 31 December 1953

59 years and 6 months

From 1 January 1954 and later

60 years

Amounts on which family trust distribution tax has been paid

Distributions on which family trust distribution tax is payable may include:

  • income or property from a trust or partnership
  • dividends or property from a company, and
  • the use of property owned by the trust, partnership or company for which you have not paid full value, such as the free use of a holiday house.

Additional information

Family trust distribution tax is payable on any distribution made to a person outside a 'family group' by a:

  • trust which has elected to be a family trust, or
  • trust, partnership or company which has elected to be included in the family group of a family trust.

The amount that is included in your assessable income is reduced proportionately, to the extent that family trust distribution tax has been paid on a distribution to you. For example, if half of the family trust distribution tax payable on the distribution has been paid, then half of the distribution will be exempt. However, any part of the distribution that would have been included in your assessable income if family trust distribution tax had not been paid (reduced by any expenses that would have been deductible against it), is taken into account in determining your liability for the Medicare levy surcharge.

Child support or spouse maintenance payments

An exempt child support or spouse maintenance payment is a periodic payment, in the nature of maintenance, that:

  • is made by an individual (the maintenance payer), or
  • is attributable to a payment made by an individual (also the maintenance payer).

When is a child support or spouse maintenance payment exempt?

Child support or spouse maintenance payment is only exempt from income tax as a welfare payment if it is made:

  • to an individual who is or has been the maintenance payer's spouse, or
  • for the benefit of an individual who is or has been:
    • a child of the maintenance payer, or
    • a child who is or has been a child of an individual who is or has been a spouse of the maintenance payer.

When is a child support or spouse maintenance payment not exempt?

The maintenance payment is not exempt if, in order to make it or a payment to which it is attributable, the maintenance payer:

  • divested any income-producing assets, or
  • diverted ordinary income or statutory income upon which the maintenance payer would otherwise have been liable to income tax.

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