The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.T.30 Tax-free pension or benefit

Definition

The following tax free pensions or benefits are included in the ATI:

  • a disability support pension under SSAct Part 2.3 (including any youth disability supplement, if applicable)
  • a carer payment under SSAct Part 2.5
  • an invalidity service pension under the Veterans' Entitlements Act 1986 Part III Division 4
  • a partner service pension under the Veterans' Entitlements Act Part III Division 5
  • income support supplement under the Veterans' Entitlements Act Part IIIA

BUT only the amount that is:

  • exempt from income tax, and
  • not a bereavement payment, pharmaceutical allowance, RA, language, literacy and numeracy supplement, remote area allowance or tax-exempt pension supplement.

Note: Pensions and benefits are included as income for child support (1.1.C.60) purposes if they are classified as taxable income (1.1.T.20) or if they are specifically listed in the tax free pensions or benefits section above.

Note: From 1 January 2022, the Defence Force Income Support Allowance under Part VIIAB of the Veterans' Entitlements Act ceased as a result of amendments made by the Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 and is therefore not included in the definition of tax free pension or benefit in section 5 of the CSA Act. However, any payment of Defence Force Income Support Allowance under Part VIIAB of the Veterans' Entitlements Act made before, on or after 1 January 2022 remains part of ATI for child support purposes.

Act reference: CSA Act section 5(1)-'tax free pension or benefit'

SSAct Part 2.3—Disability support pension, Part 2.5—Carer payment

Veterans' Entitlements Act 1986 Division 4 Part III—Invalidity service pension, Division 5 Part III—Partner service pension, Division 5 Part IIIA—Income support supplement

Policy reference: CS Guide 3.1.1 Adjusted taxable income

Last reviewed: