Government Pensions and Allowances – What You Need to Declare (2025 Update)

Don’t Let Centrelink Payments Trip You Up

Government pensions and allowances can feel like alphabet soup — DSP, DVA, DSP (again), Austudy, JobSeeker… and the ATO expects you to know what’s taxable, what’s tax-free, and how to declare it.

This 2025 GoTax guide cuts through the jargon and shows you exactly what needs declaring, when tax applies, and how to stay in the ATO’s good books. And yes — even if it’s tax-free, most payments still need to be declared on your tax return.

What Are Government Pensions and Allowances?

These are payments made by the Australian Government through Centrelink or the Department of Veterans’ Affairs (DVA) to support everyday living costs, health needs, or income.

Common Examples:

• Age Pension

• Disability Support Pension (DSP)

• Carer Payment

• JobSeeker Payment

• Youth Allowance

• Austudy

• Parenting Payment

• Veterans’ pensions

• Income Support Supplement

If you received any of these in 2025, you’ll likely see them pre-filled in your online tax return.

Are Government Pensions Taxable?

Here’s the breakdown:

Taxable Payments (must be declared):

• Age Pension (if you’re at Age Pension age)

• Carer Payment (if you’re at Age Pension age)

• JobSeeker Payment

• Austudy

• Youth Allowance

• Parenting Payment (partnered)

• Veteran Payment

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

• Invalidity Service Pension (if you’re at Age Pension age)

• Income Support Supplement

Tax-Free Payments (declare them, but no tax applies):

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

• Carer Payment (if both carer and recipient are under Age Pension age)

• Invalidity Service Pension (under Age Pension age)

• Some Partner Service Pensions (under Age Pension age)

Some pensions are taxable (like JobSeeker or Age Pension if you’re of Age Pension age), while others are tax-free but must still be declared.

How Do You Declare Them?

• Enter taxable amounts under “Australian Government pensions and allowances” in your Gotax return.

• Tick the tax-free box for payments that don’t attract tax.

• If you lodge through GoTax Online, these amounts are usually pre-filled — but always check for accuracy.

Records You Need to Keep

• Payment summaries or income statements from Centrelink/DVA.

• Type of payment and amount received.

• Keep for at least five years.

Gotax FAQ – Real Questions, Real Fast

Do I pay tax on the Age Pension?

It depends. The Age Pension is taxable, but if your total income is below the threshold, you may not actually pay tax.

Do I declare Disability Support Pension if I’m under Age Pension age?

Yes — declare it. It’s tax-free but still must be reported.

I get both DSP and Carer Payment. Do I declare both?

Yes. Each payment must be declared separately.

Are one-off disaster payments taxable?

Some are, some aren’t. Check the ATO’s disaster support page — or save yourself the stress and let GoTax handle it.

My pension didn’t appear in MyGov. What now?

Contact Centrelink or DVA directly — or chat with the GoTax team to get it sorted.

What if I don’t declare my pension?

The ATO already has the data. If you don’t declare it, your return will be flagged, delayed, or adjusted.

Do tax-free pensions still matter on my return?

Yes. Even if no tax applies, declaring them ensures offsets and entitlements are calculated correctly.

Where in my return do I put pensions?

In the “Australian Government pensions and allowances” section. Gotax Online guides you straight there.

How long should I keep pension records?

At least five years from the date you lodge your return.

Why use Gotax for pensions and allowances?

Because we make it stress-free, fast, and accurate. No jargon, no mistakes — just the maximum refund you’re entitled to.

And that's not all

Government pensions and allowances — taxable or not — must be declared. Doing it properly avoids delays, keeps you audit-safe, and ensures you get all the tax offsets you’re entitled to.

Start your return with GoTax Online: www.gotax.com.au/guest-user

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