Tax Returns for Aged Pensioners If your only source of income is the aged pension, it is compulsory for you to lodge a tax return each year. This applies is Centrelink is withholding tax from the aged pension. This information will be included in your PAYG summary, indicating the amount of tax withheld.
Tax returns for Age Pension recipients
If you receive the Age Pension (either full or part) and received income from other sources and Centrelink is withholding tax from your pension payments, it is compulsory to lodge a tax return each year.
If you get a Centrelink payment from us, or pay or receive Child Support, you should check if you need to lodge a tax return. If you're registered to pay or receive child support, you need to lodge a tax return. If your partner has a child support assessment, they need to lodge one too.
If an Age Pensioner's only source of income is the Age Pension, itself, then Age Pensioners do not need to pay tax, but you may still need to lodge a tax return. The tax for a pensioner is calculated in the same manner as an ordinary working Australian or self-funded retiree.
If you're 60 and over, the income will generally be tax-free. If you're between your preservation age and 59, the components of your super will dictate how it will be taxed.
Centrelink is withholding any tax from your age pension payment. If Centrelink does withhold tax from your age pension payment; this will be noted on your income statement or PAYG summary. If there is any amount of tax withheld listed on your income statement, then you should lodge a tax return.
When you don't need to lodge. You usually don't need to lodge a tax return where: your income is under the tax-free threshold ($18,200) no tax has been withheld from that income.
You might not need to lodge a tax return.
If you earned less than $18,200 AND you didn't pay any tax on this income, then you probably won't need to lodge a tax return this year. In most cases if you fall into example 3, you won't need to lodge a return.
Prosecution action
If you don't work with us to address your overdue lodgment, we can make the decision to prosecute you through the relevant court of your state or territory. This action will include a summons to attend court.
Currently, a pensioner can only earn up to $240 per week before they lose the pension by 50 cents in the dollar. That means they can only really work one day a week before getting penalised (depending on their remuneration). If they earn more than about $33,000 per year—which includes their pension—they also get taxed.
Around 1.6 million NSW households and 320,000 small businesses are eligible for a new National Energy Bill Relief payment in financial year 2023-24. Eligible low-income households, pensioners, self-funded retirees, families and carers will receive a one-off $500 bill relief payment towards their electricity bills.
If you're above the age of 60, you don't need to provide us with your TFN. You may also be exempt if you're receiving certain government pensions, benefits or allowances. To find out about TFN exemptions, please visit the ATO website.
Taxable payments:
Age Pension (including Age Pension Blind) Austudy. Bereavement Allowance. Carer Payment (where carer or care receiver is of Age Pensions age)
SMSF Capital Gains Tax
Capital gains tax within a self managed super fund (SMSF) is the same as it is within an ordinary superannuation fund – 15% tax on gains within accumulation phase, reduced to 10% if the investment was owned for longer than 12 months; and 0% in pension phase.
You can advise us of a non-lodgement after the end of each financial year. It's best to wait until mid-July to tell us. This is so we have time to get any pre-filled income information.
Most individuals who earn income and had tax withheld from that income need to lodge a tax return. Prepare and lodge your own tax return online.
What are the consequences? If the ATO concludes that a taxpayer has undeclared income, the taxpayer is generally liable for tax on the undeclared income plus interest charges and penalties. Assuming that the taxpayer is an individual, he or she is liable to pay tax at individual marginal rates on the undeclared income.
Your tax return covers the income year from 1 July to 30 June. If you need to complete a tax return you must lodge it or engage with a tax agent, by 31 October.
Non-taxable payments
These are: Carer Payment, if you and all care receivers are under Age Pension age. Disability Support Pension, if you are under Age Pension age. Youth Disability Supplement, when paid with Disability Support Pension.
Do You Declare Superannuation on Your Tax Return? Super contributions do not need to be included as taxable income on your tax return and no tax will be paid by you personally on super contributions; however, there are instances where super contributions need to be included in your tax return for other reasons.
While you're under Age Pension age
We don't count you or your partner's superannuation in the income and assets tests, if your fund isn't paying you a superannuation pension. If your fund is paying you a superannuation pension, it is assessable as an income stream.