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(b) (Repealed by No 12 of 2012)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


(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
 View history reference


(wa) payments under the Social Security Act 1991 referred to in subsection (1EA); or
 View history reference


(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);
 View history reference


(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.

[ CCH Note 1: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 1 items 14 - 16, by inserting table item 14.1 after table item 13A.1, repealing table item 19.1 and substituting " jobseeker payment " for " newstart allowance " in the note at the end of the table, effective 20 March 2020. Table item 14.1 will read:


14.1Jobseeker 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)

No 26 of 2018, s 3 and Sch 1 item 345 contains the following saving provision:

345 Saving provision - Income Tax Assessment Act 1997  
345  Despite the amendments made by this Part, item 19.1 of the table in section 52-10 and sections 52-15 and 52-30 of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment of newstart allowance under Part 2.12 of the Social Security Act 1991 before, on or after that commencement.

]

[ CCH Note 2: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 2 item 3, by repealing table items 29.1 and 33.1, effective 20 March 2020. For saving provision, see note under s 52-15 .]

[ CCH Note 3: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 3 item 5, by repealing table items 34.1 to 34.4, effective 20 March 2020. For saving provision, see note under s 52-25(1) .]

[ CCH Note 4: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 4 item 1, by repealing table item 3.1, effective 20 March 2020. No 26 of 2018, s 3 and Sch 4 item 106 contains the following saving provision:

106 Saving provision - Income Tax Assessment Act 1997  
106  Despite the amendments made by this Schedule, item 3.1 of the table in section 52-10 and section 52-15 of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment of bereavement allowance under Part 2.7 of the Social Security Act 1991 before, on or after that commencement.

]

[ CCH Note 5: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 5 item 35, by repealing table item 23.1, effective 20 September 2020. For saving provision, see note under s 52-20(3) .]

[ CCH Note 6: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 6 item 6, by repealing table item 32.1, effective 1 January 2022. For saving provision, see note under s 52-15 .]

[ CCH Note 7: S 52-10 will be amended by No 26 of 2018, s 3 and Sch 7 item 2, by repealing table item 22.1, effective 1 January 2022. For saving provision, see note under s 52-30(1) .]


 



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