The beneficiary tax offset is available to taxpayers who receive certain taxable government benefits.
If the ONLY income you receive is from eligible benefits, the beneficiary tax offset ensures that you pay no tax, but you may have to pay the Medicare Levy.
The beneficiary tax offset is automatically calculated by the ATO from information you disclose in your tax return.
You may receive a beneficiary tax offset, to help reduce tax on your other accessible income, if during the income year:
> you receive any of the qualifying payments or allowances, and
> have other assessable income.
The following list shows the payments and allowances that qualify for the beneficiary tax offset:
> ABSTUDY living allowance or payment under the Veterans' Children Education Scheme (if you were 16 years or over)
> Austudy payment
> Commonwealth education or training payments, including:
> Green Corps training allowance
> New Enterprise Incentive Scheme allowance
> Textile, clothing and footwear special allowance
> Training for Employment Program allowance
> Other taxable Commonwealth education or training payments
> an income support component from a Community Development Employment Project (CDEP) - shown as ‘CDEP Salary or Wages’ on your PAYG payment summary – individual non business
> a CDEP scheme participant supplement|
> exceptional circumstances relief payment*
> farm help income support (previously known as restart income support)
> mature age allowance
> Newstart allowance
> parenting payment (partnered)
> partner allowance
> sickness allowance
> special benefit
> widow allowance
> youth allowance
* The emergency and general assistance payment is not the same as exceptional circumstances relief payment. Emergency and general assistance payments made by Centrelink are not rebatable benefits, therefore taxpayers are not entitled to the beneficiary tax offset in relation to this payment.