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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME    View history reference

Division 52 - Certain pensions, benefits and allowances are exempt from income tax    View history reference

Subdivision 52-A - Exempt payments under the Social Security Act 1991    View history reference

Operative provisions

SECTION 52-10  How much of a social security payment is exempt?  

 View history reference

52-10(1)  

 View history reference [No equivalent]
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
 View history reference


(ab) carer supplement; or
 View history reference


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


(b) (Repealed by No 12 of 2012)
 View history reference


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


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


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


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


(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
 View history reference


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


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


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


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


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


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


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


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


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


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


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


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


(u) 2008 one-off payment to carers (carer service pension related); or
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(v) 2008 one-off payment to carers (carer allowance related); or
 View history reference


(w) payments under a scheme referred to in subsection (1E); or
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(wa) payments under the Social Security Act 1991 referred to in subsection (1EA); or
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(wb) (Repealed by No 55 of 2016)
 View history reference


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


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


(z) (Repealed by No 13 of 2014)
 View history reference


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


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


(zc) (Repealed by No 96 of 2014)
 View history reference

Note:

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

52-10(1A)  

 View history reference [No equivalent]
Payments of pension bonus and pension bonus bereavement payment under Part 2.2A of the Social Security Act 1991 are exempt from income tax.

52-10(1AA)  

 View history reference
Child disability assistance under Part 2.19AA of the Social Security Act 1991 is exempt from income tax.

52-10(1AB)  

 View history reference
Carer supplement under Part 2.19B of the Social Security Act 1991 is exempt from income tax.

52-10(1AC)  

 View history reference
One-off energy assistance payments under Part 2.6 of the Social Security Act 1991 are exempt from income tax.

52-10(1B)  

(Repealed by No 12 of 2012)

52-10(1C)  

(Repealed by No 12 of 2012)

52-10(1CA)  

 View history reference
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).

52-10(1CAA)  

(Repealed by No 19 of 2008)

52-10(1CB)  

 View history reference
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.
 View history reference

52-10(1D)  

 View history reference
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);
 View history reference


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


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


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


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


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


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


(h) 2006 one-off payment to carers (partner service pension related) (see Division 6 of Part 2.5A of that Act);
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(i) 2006 one-off payment to carers (carer service pension related) (see Division 7 of Part 2.5A of that Act); or
 View history reference


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


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


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


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


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


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


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


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


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


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


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

52-10(1E)  

 View history reference
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.
 View history reference

52-10(1EA)  

(Repealed by No 128 of 2015)

52-10(1EB)  

(Repealed by No 55 of 2016)

52-10(1F)  

 View history reference
Economic security strategy payment under the Social Security Act 1991 is exempt from income tax.

52-10(1G)  

 View history reference
Training and learning bonus under the Social Security Act 1991 is exempt from income tax.

52-10(1H)  

(Repealed by No 13 of 2014)

52-10(1J)  

 View history reference
Education entry payment supplement under the Social Security Act 1991 is exempt from income tax.

52-10(1K)  

 View history reference
Australian Victim of Terrorism Overseas Payment under Part 2.24AA the Social Security Act 1991 is exempt from income tax.

52-10(1L)  

 View history reference
Clean energy payments under the Social Security Act 1991 are exempt from income tax.

52-10(1M)  

(Repealed by No 96 of 2014)

52-10(2)  

 ITAA 36
Expressions used in this Subdivision that are also used in the Social Security Act 1991 have the same meaning as in that Act.

52-10(3)  

 ITAA 36
Ordinary payment means a payment other than a payment made because of a person's death.

52-10 Table_ebook



Income tax treatment of social security payments
ItemPaymentCase 1Case 2Case 3Case 4
 1.1Advance pharmaceutical supplementExemptExemptNot applicableNot applicable
...........
 2.1Age pensionSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
 2AA.1Australian Government Disaster Recovery PaymentExemptExemptNot applicableNot applicable
...........
 2A.1Austudy paymentSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-30)
...........
 3.1Bereavement allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptNot applicable
...........
3A.1Carer allowanceExemptExemptExemptExempt
...........
 4.1Carer payment: you are pension age or overSupplementary 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)
...........
 4.2Carer payment: the care receiver or any of the care receivers is pension age or overSupplementary 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)
...........
 4.3Carer payment: both you and the care receiver or all of the care receivers are under pension ageExemptExemptExempt, 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)
...........
 4.4Carer payment: you are under pension age and any of the care receivers has diedExemptExemptExempt, 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)
...........
 5.1Crisis paymentExemptExemptNot applicableNot applicable
...........
 6.1Disability support pension: you are pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
 6.2Disability support pension: you are under pension ageExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
 7.1(Repealed by No 97 of 2008)   
...........
 7.2(Repealed by No 97 of 2008)   
...........
 8.1(Repealed by No 82 of 2006)   
...........
 9.1Double orphan pensionExemptExemptExemptNot applicable
...........
10.1(Repealed by No 64 of 2008)   
...........
11.1(Omitted by No 83 of 1999)   
...........
12.1(Omitted by No 83 of 1999)   
...........
13.1(Omitted by No 83 of 1999)   
...........
13A.1Fares allowanceExemptExemptNot applicableNot applicable
.......... 
14.1(Omitted by No 83 of 1999)   
...........
14.2(Omitted by No 83 of 1999)   
...........
15.1Mature 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)ExemptExempt up to the tax-free amount (see section 52-25)
...........
16.1Mature 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)ExemptExempt up to the tax-free amount (see section 52-30)
...........
17.1Mature age partner allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptExempt up to the tax-free amount (see section 52-25)
...........
18.1Mobility allowanceExemptExemptNot applicableNot applicable
...........
19.1Newstart allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-30)
...........
20.1(Omitted by No 197 of 1997)   
...........
21.1(Omitted by No 197 of 1997)   
...........
21A.1Parenting payment (benefit PP (partnered))Supplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptExempt up to the tax-free amount (see section 52-30)
...........
21A.2(Omitted by No 83 of 1999)   
...........
21A.3Parenting payment (pension PP (single))Supplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptNot applicable
...........
22.1Partner allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptExempt up to the tax-free amount (see section 52-30)
...........
22A.1Pensioner education supplementExemptExemptNot applicableNot applicable
...........
22B.1Energy supplement under Part 2.25B of the Social Security Act 1991ExemptExemptNot applicableNot applicable
...........
22C.1Quarterly pension supplementExemptExemptNot applicableNot applicable
...........
23.1Sickness allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-30)
...........
24.1(Omitted by No 197 of 1997)   
...........
25.1Special benefitSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-30)
...........
26.1Special needs age pensionSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
27.1Special needs disability support pension: you are pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
27.2Special needs disability support pension: you are under pension ageExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
28.1(Omitted by No 197 of 1997)   
...........
29.1Special needs widow B pensionSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)Not applicableNot applicable
...........
30.1Special needs wife pension: you are pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
30.2Special needs wife pension: your partner is pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-25)
...........
30.3Special needs wife pension: both you and your partner are under pension ageExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
30.4Special needs wife pension: you are under pension age and your partner has diedExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
31.1Telephone allowanceExemptExemptNot applicableNot applicable
...........
31A.1Utilities allowanceExemptExemptNot applicableNot applicable
...........
32.1Widow allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)Not applicableNot applicable
...........
33.1Widow B pensionSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptNot applicable
...........
34.1Wife pension: you are pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptExempt up to the tax-free amount (see section 52-25)
...........
34.2Wife pension: your partner is pension age or overSupplementary amount is exempt (see section 52-15)Supplementary amount is exempt (see section 52-15)ExemptExempt up to the tax-free amount (see section 52-25)
...........
34.3Wife pension: both you and your partner are under pension ageExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
34.4Wife pension: you are under pension age and your partner has diedExemptExemptExemptExempt up to the tax-free amount (see section 52-25)
...........
35.1Youth allowanceSupplementary amount is exempt (see section 52-15)Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)ExemptExempt up to the tax-free amount (see section 52-30)

Note:

A reference in this table to newstart allowance 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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