Centrelink Benefits – What You Need to Declare

What Are Centrelink Benefits?

Centrelink benefits are government payments to help with your cost of living. These include:

• Age Pension

• JobSeeker

• Youth Allowance

• Parenting Payment

• Disability Support Pension

• Austudy/ABSTUDY

• Carer Payment and Allowance

• Family Tax Benefit

• Rent Assistance

Some of these are taxable — others are completely tax-free.

Which Payments Are Taxable?

The following Centrelink benefits must be declared in your tax return:

• JobSeeker Payment

• Youth Allowance (if over 16)

• Austudy and ABSTUDY (living allowance)

• Parenting Payment (single)

• Disability Support Pension (if under Age Pension age)

• Carer Payment

• Special Benefit

• Sickness Allowance

Which Payments Are Tax-Free?

These don’t go in your tax return:

• Age Pension (if you’ve reached Age Pension age)

• Disability Support Pension (if you’re of Age Pension age)

• Carer Allowance

• Family Tax Benefit

• Rent Assistance

• Child Care Subsidy

• Bereavement Allowance

• Double Orphan Pension

• One-off crisis payments (usually)

If unsure, check your Centrelink Income Statement or the ATO’s official list.

How Do You Declare Centrelink Payments?

Taxable Payments

• Centrelink sends your info to the ATO.

• It usually shows up pre-filled in your tax return.

• Double-check that it’s correct.

Tax-Free Payments

• Do not include these in your return.

What About Tax Withheld?

• You can ask Centrelink to withhold tax from your payments.

• If tax was withheld, it will show on your Income Statement.

• You may get a refund if too much tax was withheld.

What Records Should You Keep?

• Centrelink Income Statements (formerly payment summaries)

• Records of any tax withheld

• Letters about one-off or lump sum payments

Keep these for at least five years.

Gotax FAQ – Real Questions, Real Fast

Q: Do I have to pay tax on my Age Pension?
A: No — if you’re of Age Pension age, it’s tax-free.

Q: I get JobSeeker. Do I declare it?
A: Yes — JobSeeker is taxable. It should be pre-filled but always check.

Q: I receive both taxable and tax-free payments. What do I declare?
A: Only the taxable ones. Skip the rest.

Q: Centrelink withheld tax from my payments. What do I do?
A: Declare the gross amount and the tax withheld. You might get a refund.

Q: I got a crisis payment. Do I need to include that?
A: Usually no. Most one-off crisis payments are tax-free.

Q: My Centrelink payment isn’t in my return. What now?
A: Check MyGov or call Centrelink. Don’t guess — the ATO gets this info direct.

Bottom line:
Some Centrelink payments are taxable, some aren’t. Always check what’s in your return — the ATO usually has the data, but it’s your job to confirm it. If in doubt, check your Centrelink statement or ask Derek below.

Let GoTax Handle It For You

GoTax Online makes declaring Centrelink income simple. We work with the ATO pre-fill data, match it with what you’ve received, and help you declare only what’s required.

Fast. Stress-free. Too easy.

Start your return now: www.gotax.com.au/guest-user