Help for Income (2024)

• Make a Claim Help Index
• Family Tax Benefit
• Family Tax Benefit Part A
• Family Tax Benefit Part B
• Child Care Benefit
• Financial Year
• Income Estimate
• Income Details
• Zero rate
• Further entitlement after the end of the financial year
• Child Care Rebate
• Child Care Rebate for CCB reduced fee customers
• Child Care Rebate for CCB Lump sum customers
• Reason why you will not be lodging a Tax Return?
• Taxable Income
• Reportable Fringe Benefits
• Reportable superannuation contributions paid
• Loss from a Rental Property
• Total net investment losses
• Tax Free Pensions and Benefits
• Foreign Income
• Tax Exempt Foreign Income
• Receive privately
• Pay Any Child Support
• Payments and benefits
• Taxable government payments
• Taxable payments
• Taxable components
• Income Support Payment
• Important information about income estimates

Family Tax Benefit

Family Tax Benefit is a payment to help families with the cost of raising child(ren).

To be eligible for Family Tax Benefit you must:

• be a parent, guardian, carer (including foster carer), grandparent or an approved care organisation
• provide care to an eligible child
• have legal responsibility for the day-to-day care, welfare and development of the child, and
• meet the Australian residence requirements for family assistance purposes.

You can have your Family Tax Benefit paid:

• by Centrelink either as fortnightly payments paid into your bank or credit union account, or as a lump sum after the end of the financial year.

If you receive Family Tax Benefit as fortnightly payments, you must:

• provide an estimate of your family's adjusted taxable income for the current financial year
• let Centrelink know straight away if your income changes.

Your family's entitlement will be reconciled against your actual taxable income when you lodge your return with the Australian TaxOffice. You can ask Centrelink to lower your payments to reduce the risk of being overpaid. You can also choose toget some of your entitlement during the year and the rest after the end of the financial year.

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Family Tax Benefit Part A

Family Tax Benefit Part A is worked out on your family's combined annual income and the ages and number of dependent child(ren) in your care. It is paid for eligible child(ren) up to the age of 21 and full-time students aged 21-24.

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Family Tax Benefit Part B

Family Tax Benefit Part B provides extra assistance to single parent families and families with one main income. Family Tax Benefit Part B is subject to an income test and can be paid until the youngest child in your care turns 16 (or until the end of the calendar year in which they turn 18 if they are a full-time student).

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Child Care Benefit

Child Care Benefit is a payment to helps families with the costs of child care. You can claim Child Care Benefit for approved child care or registered child care or a combination of both.

Approved Child Care is provided by a child care service approved by the Department of Education, Employment and Workplace Relations to reduce child care payments of behalf of eligible families.

Most long day care, family day care, before and after school care, vacation care, in-home care and occasional care services are approved child care services.

If you use approved care you can choose to receive your Child Care Benefit as reduced fees or as a lump sum payment after the end of the financial year.

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Financial Year

The Financial Year is the period from 1 July to 30 June.

• Current financial year is a financial year that has started and has not yet finished.
• Next financial year is the financial year that begins when the current financial year is finished.
• A past financial year is a financial year that finished before the current financial year started.

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Income estimate

The income estimate is made up of your (or your and your partner’s) taxable income for the current financial year from 1 July to 30 June. It is the total of:

• taxable income (also known as adjusted taxable income)
• reportable fringe benefits
• reportable super contributions
• the value of total net investment losses
• the value of any tax-free pensions and benefits
• any foreign income sourced from outside Australia that is not taxable in Australia
• any tax exempt foreign income sourced from Australia that is exempt from tax under sections 23AF and/or 23AG of the Income Tax Assessment Act 1936
• LESS the full amount of any child support you and/or your partner pay.

At the end of the financial year we will recalculate your rate of Family Tax Benefit based on your actual family income. If you have underestimated your family income you may have to repay money to Centrelink so it is important that your estimate is as accurate as possible.

If your income changes, you should let Centrelink know. You can update your family income estimate online at any time by using these screens.

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Income details

The income details is made up of your (or your and your partner’s) taxable income for the financial year -from 1 July to 30 June - for the financial year you are claiming for. It is the total of:

• taxable income (also known as adjusted taxable income)
• reportable fringe benefits
• reportable super contributions
• the value of total net investment losses
• the value of any tax-free pensions and benefits
• any foreign income sourced from outside Australia that is not taxable in Australia
• any tax exempt foreign income sourced from Australia that is exempt from tax under sections 23AF and/or 23AG of the Income Tax Assessment Act 1936
• LESS the full amount of any child support you and/or your partner pay

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Zero Rate

Your family income may be over the lower income threshold,resulting in the rate of your Child Care fee reduction being reduced tozero. The income limit will vary depending upon your circ*mstances.

Family income does not affect your eligibility to Child CareRebate.

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Further entitlement after the end of the financial year

You can claim Child Care Benefit as a zero rate and pay full feesduring the year and receive any extra entitlement as a lump sum afterthe end of the financial year when you know your actual income.

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Minimum Rate

Child Care Benefit can be paid at the minimum rate regardless ofincome for child care used before 1 July 2008. This must be claimed as alump sum.

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Child Care Rebate

If you are eligible for Child Care Benefit (excluding the income test) for approved child care and satisfy the rebate Work, Training, Study test, you may be able to receive the Child Care Rebate. The Rebate covers a percentage of out-of-pocket expenses for approved child care, up to a maximum amount per child per year. You do not need to make a separate claim to receive Child Care Rebate.

For child care costs from 1 July 2008 the percentage is 50% and for child care costs before 1 July 2008 the percentage is 30%.

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Child Care Rebate for CCB reduced fee customers

For child care costs from 1 July 2008, the rebate will be paid quarterly for the first three quarters after details of the child care usage/attendance has been received from your child care provider and is based on your CCB entitlement. After the end of the financial year, when your actual CCB entitlement is determined and your actual annual rebate entitlement is known, any quarterly rebate payments made during the year will be deducted. This may result in a change to your rebate entitlement. Alternatively, you can still receive CCB as reduced fees but choose to receive the rebate as a lump sum after the end of the financial year.

For child care costs between 1 July 2006 and 1 July 2008, Child Care Rebate is paid as an annual payment after the end of the financial year once actual Child Care Benefit entitlement is known.

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Child Care Rebate for CCB Lump sum customers

If you claim Child Care Benefit as a lump sum after the end of the financial year, Child Care Rebate will be paid as a lump sum once your Child Care Benefit entitlement has been determined. If you wish to receive Child Care Rebate as a quarterly payment, you will need to receive Child Care Benefit as reduced fees during the year.

Information about the Child Care Rebate for child care costs incurred before 1 July 2006 is available on the Australian Taxation Office website, or by calling the Australian Taxation Office.

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Income Support Payment:

An income support payment is any of the following Australian Government pensions or benefits:

• Age Pension
• Austudy
• Bereavement Allowance
• Carer Payment
• Community Development Employment Project (CDEP) Participant Supplement
• Disability Support Pension
• Disability Support Pension (Blind)
• Department of Veterans' Affairs Defence Force Income Support Supplement or Service Pension
• Emergency Payment
• Exceptional Circ*mstances Relief Payment
• Newstart Allowance
• Parenting Payment
• Partner Allowance
• Sickness Allowance
• Special Benefit
• Special Needs Pension
• Widow Allowance
• Widow B Pension
• Wife Pension
• Youth Allowance

If a tax return is lodged, your taxable income is the income shown on the assessment notices from the Australian Taxation Office for you (and/or your partner). Last year's assessment notice amount may help you estimate your taxable income for the current year.

Note: If you (and/or your partner) are getting an income support payment such as Parenting Payment or Newstart Allowance, you also need to contact Centrelink with your income details to ensure your income support payments are correct.

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Reason why you will not be lodging a Tax Return?

Reasons why you may not need to lodge a tax return include:

• No tax paid
• Income was below tax free threshold
• Only income was a Government pension or allowance

If you or your partner (if you had one) are required to lodge a tax return, they must be lodged with the Australian Taxation Office within 12 months from the end of the financial year for which you are seeking payment. If you or your partner (if you had one) are not required to lodge a tax return you must tell us that you are not required to lodge within 12 months from the end of the financial year for which you are seeking payment.

If there are special circ*mstances that prevent your or your partner (if you had one) from meeting this deadline, please contact us to discuss.

In some circ*mstances, the Australian Taxation Office grants an extension of time or an exemption for the lodgement of tax returns. If you are unsure if you need to lodge a tax return, you can consult the Australian Taxation Office or your tax agent.

If you have an extension of time to lodge your tax returns, you will be required to provide the date of your lodgment extension. This date cannot be before 1 July of the year following the lodgment year. (E.g. For 2012-13 tax returns, the lodgment extension date cannot be before 1 July 2014). If the Australian Taxation Office grants you or your partner (if you had one) an extension of time to lodge your tax returns, you should contact us to discuss the circ*mstances that prevent you from lodging within the allowable period.

If you do not consider any of these reasons about why you will not be lodging a tax return for the relevant financial year apply to you, please select "Other" and provide details in the free text space provided.

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Taxable income

Taxable income is the amount you receive after you take away all your allowable deductions from your assessable or gross income. Gross income includes:

• Salary and wages, lump sum payments, money from business or self employment, rent, interest, investments and dividends
• partnership and trust distributions
• many Australian Government pensions and benefits
• other taxable income.

Allowable deductions include:

• deductions for work-related expenses
• expenses incurred for business purposes
• gifts and donations to eligible charities and organisations

Salary and Wages

Any income you get from your employer. This amount will be shown on your Payment Summary (previously known as Group Certificate).

Lump Sum Payments

Any lump sum payments you have received or expect to receive, such as bonuses, compensation, redundancy payments or termination payments. You must include all taxable parts of these amounts.

Business or Self-Employment

Any taxable income from self-employment such as sole trading and distributions from partnerships, trusts and companies. You may need to refer to your profit and loss statements.

Rent

Rent from all residential or commercial real estate that you or your partner own or partially own. This can include houses, a room in your house, units, pasture and boats. Net rental property losses are added back into your income.

Investments

You need to include any income or dividends from investments such as interest from banks, credit unions or building societies, shares, managed investments, bonds and managed funds.

Real Estate

Any taxable income from residential or commercial real estate for which you receive rent is required to be included as taxable income. This can included houses, a room in your house, units, pasture and boats. If you make a loss this needs to be subtracted from your taxable income but included under 'Total Net Investment Losses'.

Taxable Government Pensions and Benefits or Payments

Any taxable Government payment you (or you and your partner) receive or expect to receive from Centrelink or the Department of Veterans' Affairs. These include:

• Age Pension
• Disability Support Pension (for people of Age Pension age)
• Widow Pension
• Carer Payment (if carer is of Age Pension age)
• Partner Pension (if either person is of Age Pension age)
• Parenting Payment
• Parental Leave Pay
• Bereavement Allowance
• Newstart Allowance
• Widow Allowance
• Sickness Allowance
• Special Benefit
• Youth Allowance
• Mature Age Allowance
• Mature Age Partner Allowance
• Partner Allowance
• Austudy Payment
• ABSTUDY living Allowance and Dependent Spouse Allowance
• Education Entry Payment
• Farm Family Restart
• Exceptional Circ*mstances Relief Payment

Please note: Do not include Family Tax Benefit Part A, Family Tax Benefit Part B, Child Care Rebate.

Other Taxable Income

Income from any other sources not covered above such as superannuation withdrawals, capital gains or foreign income on which you pay Australian tax.

Please Note: Foreign income on which you do not pay Australian tax needs to be included under Foreign Income.

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Reportable fringe benefits

You need to include employer provided or reportable fringe benefits that you or your partner get from your employment such as:

• help to pay your rent or home loan;
• a home phone;
• a car;
• school fees for children;
• your health insurance premiums;
• your child care expenses paid by your employer.

You will find this amount recorded on your Payment Summary (previously called group certificate) at the end of the financial year. You can ask your employer to tell you the expected amount for this financial year. The amount recorded on a Payment Summary for the financial year ending 30 June (of the current financial year) relates to fringe benefits received between 1 April and 31 March (of the current financial year).

Enter your estimated amount of fringe benefits that will be displayed on your Payment Summary for the current financial year.

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Reportable superannuation contributions

Reportable superannuation contributions generally include discretionary employer superannuation contributions such as voluntary salary sacrificed amounts and, for the self employed, total superannuation contributions which will be claimed as a tax deduction.

Payments may be made by you (or your partner) or on your (or your partner's) behalf.

Reportable superannuation contributions are considered as income from 1 July 2009 for family assistance purposes.

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Loss from a rental property

The amount by which your interest payments and other expenses exceed the income you receive from any real estate or investment property you own. It is the amount you expect to declare on your personal tax return for the financial year. It does not include a net rental property loss from property that is part of a partnership (as recognised by the Tax Office), trusts or companies. Note: any net rental property loss is added back into your income estimate.

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Total net investment losses

Total net losses from investments include losses from rental properties and financial investments.

The amount by which your expenses related to investments (such as interest payments on loans secured to investments), exceed the income you receive from those investments. This may include rental properties, shares or other investments you own. It is the amount you expect to declare on your personal tax return for the financial year.

Total net losses from investments are considered as income from 1 July 2009 for family assistance purposes.

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Tax-free pensions and benefits

Tax-free pensions and benefits you or your partner receive or expect to receive through Centrelink or the Department of Veterans' Affairs must be included in this section. Add together the amounts you receive from the following payments:

Centrelink

• Disability Support Pension paid to a person who is not old enough to receive the Age Pension
• Carer Payment where both the carer and the person being cared for are not old enough to receive the Age Pension
• Wife Pension paid where both the recipient and the partner - if applicable - are not old enough to receive the Age Pension

Veterans' Affairs

• Invalidity Service Pension where the recipient is not old enough to receive the Age Pension
• Disability Pension, War Widow's and War Widower's Pension
• Special Rate Disability Pension
• Partner Service Pension where both the carer and the veteran being cared for are under Age Pension age, the veteran has died and was receiving an Invalidity Service Pension at the time of death.
• Defence Force Income Support Supplement, if it is tax free
• Income Support Supplement, if it is tax free

Tax-free pensions and benefits do not include Bereavement Payment, Pharmaceutical Allowance, Rent Assistance, Remote Area Allowance or Language, Literacy and Numeracy Supplement.

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Foreign income

Any income from a source outside Australia that you (and/or your partner) receive for which you do not have to pay Australian tax is counted as foreign income. Where a conversion to Australian dollars is needed, the exchange rate as at 1 July of the relevant financial year needs to be used. For more information on conversion rates, go to Services Australia website at www.servicesaustralia.gov.au

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Tax exempt foreign income

Tax Exempt Foreign Income is any income for qualifying service on a particular approved project (under Section 23AF of the Income Assessment Act 1936) and/or foreign service (under Section 23AG of the Income Tax Assessment Act 1936) for a continuous period of 91 days or more.

If you (and/or your partner) receive this type of income, it will be reported on your (and/or your partner's) payment summary. If you (and/or your partner) expect to pay Australian tax on any foreign income, include this amount in your (and/or your partner's) taxable income component.

You can ask your employer to tell you the amount this is expected to be shown on your payment summary.

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Pay any child support

Child support (maintenance) is a payment you and/or your current partner make to support your natural or adopted child from a previous relationship. It includes:

• private child support - any amount you (and/or your partner) pay directly to another person (either as a result of a court order or private agreement)
• any child support you (and/or your partner) pay through the Child Support Agency (CSA)
• non-cash child support - for example, school fees, rent/mortgage
• other amounts - which are not part of a property settlement, including spousal maintenance.

You (and/or your partner) should keep proof of the child support you (and/or your partner) pay as you (and/or your partner) may be asked to show evidence of your (and/or your partner's) claim.

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Receive privately

You have a private arrangement with the Paying parent to collect your child support and /or spousal maintenance. Payments may be made to you by:

• bank transfer,
• salary deduction,
• cheque,
• money order,
• cash, or
• payments in kind.

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Payments and benefits

The Department of Veterans' Affairs (DVA) administers payments under the Veterans' Entitlements Act 1986. These include payments such as:

• Service Pension
• War Widows Pension
• Income Support Supplement
• Defence Force Income Support Allowance
• Age Pension paid by the Department of Veterans' Affairs
• Military Rehabilitation and Compensation Scheme Payments for wholly dependent partners of deceased members of the Australian Defence Force
• Veterans' Children Education scheme, and
• Rent Assistance

If you receive a type of payment from the Department of Veterans' Affairs not listed in the question, please select 'Other'.

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Taxable government payments

The following payments are considered to be taxable payments. You can ask to have regular tax deductions (also known as tax withheld) taken out of your payments.

Taxable payments:

• ABSTUDY (living allowances and additional assistance only)
• Age Pension (including Age Pension Blind)
• Austudy
• Bereavement Allowance
• Carer Payment (where carer or care receiver is of Age Pensions age)
• Disability Support Pension (to people over Age Pension age)
• Community Development Employment Project (CDEP), including CDEP wages paid by the CDEP organisation to the CDEP participant
• Emergency Payment
• Exceptional Circ*mstances Relief Payment (ECRP)
• Mature Age Allowance
• Mature Age Partner Allowance
• Newstart Allowance
• New Enterprise Incentive Scheme (NEIS)
• Partner Allowance
• Parenting Payment (Single/Partnered)
• Parental Leave Pay
• Restart Income Support
• Sickness Allowance
• Special Benefit
• Widow Allowance
• Widow B Pension
• Wife Pension (if either person is of Age Pension age)
• Youth Allowance (where person is over 16)
• Bereavement lump sum payments above the tax free amount

Taxable components:

• ART (Arrears Taxable)
• BABP (Basic to Board Provider) may be exempt in some circ*mstances, such as, allowances paid on behalf of students aged less than 16 years.
• BABS (Basic to Boarding School) may be exempt in some circ*mstances, such as, allowances paid on behalf of students aged less than 16 years.
• Community Development Employment Project Scheme Participant Supplement (CPS)
• Bereavement Lump Sum
• Education Entry Payment
• EM6 (NSW Volunteer Firefighters)
• SFA2B (School Fees Allowance - Group 2 to school for board may be exempt in some circ*mstances)
• Work for the Dole Supplement

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Why your estimate of family income is important

If your Family Tax Benefit is paid fortnightly, we use your and your partner's (if you have one) estimate of your annual family income for the financial year to work out your fortnightly rate.

If you choose to receive your Child Care Benefit as reduced fees, we use your estimate of your annual family income for the financial year to work out your Child Care Benefit percentage.

Where you are asked to estimate your income it is important to do it as accurately as possible to reduce the risk of being overpaid.

For every $1000 your actual annual family income is higher than your estimate, you may have an overpayment of Family Tax Benefit of up to $500.

All overpayments need to be paid back. Overpayments of Family Tax Benefit and Child Care Benefit may be recovered from your future family assistance payments and from tax refunds.

Your payments will be balanced after the end of the financial year

A checking process occurs after the end of the financial year. The amount of Family Tax Benefit and/or Child Care Benefit you received through the year will be checked against the amount you should have received, based on your actual annual family income. This is done after you (and/or your partner) have lodged a tax return.

Family Tax Benefit Part A and Part B supplement payments are available at the end of the financial year once your payments have been balanced. Payment of the supplement is dependent on tax returns being lodged within the required timeframe, or advising the Family Assistance Office that you and/or your partner are not required to lodge a tax return.

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Last Updated 11 March 2011