Changes affecting your Government Benefits and Tax Offsets

Last updated June 2011

Your entitlement to many Government benefits, tax offsets and obligations are calculated based on what is considered to be your “income”. From 1 July 2009, what is counted as part of your income will change.

The changes affect a wide range of Government benefits and obligations including various income tax rebates, Centrelink payments, Child Support Agency obligations and superannuation co-contribution and tax deduction entitlements.

Whilst the tests for each vary slightly, some or all of the following items will be added together to work out what your total income is considered to be:

  • Taxable income (ie the amount you pay income tax on)
  • Adjusted fringe benefits (the amount of reportable fringe benefits that appear on your PAYG summary)
  • Tax-free pensions or benefits (eg self managed super fund pensions)
  • Target foreign income
  • Reportable superannuation contributions (new item to be reported on your PAYG summary from 1 July 2009 - see the Article “Changes to reporting superannuation on PAYG summaries and how that may affect you” under our Superannuation Articles section)
  • Total net investment losses (eg the loss claimed on a negatively geared share portfolio or rental property).

Many of these items were not previously taken into account as income.

Some calculations will reduce your income by certain child maintenance expenses you pay.

More information is available from the following Government Departments:

Australian Taxation Office:
www.ato.gov.au/content/00216843.htm

Centrelink:
www.centrelink.gov.au

Child Support Agency:
www.csa.gov.au
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