What is Taxable Income?

Taxable income is only one part of your family income used to work out your family assistance entitlement.

Any income that you pay tax on is called taxable income which is the amount remaining after you take away all your allowable deductions from your assessable income.

If you and/or your partner lodge a tax return, your taxable income is shown on the Notice of Assessment you and/or your partner get from the Australian Taxation Office. Last year's notice(s) may help you estimate your income for this year.

Taxable income is the sum of your income from:

less allowable deductions include deductions for:

  • Salary and wages – Any income you get from your employer. This amount will be shown on your Payment Summary.
  • Lump sum payments – Any lump sum payment you get throughout the financial year including termination and redundancy payments.
  • Business or self employment – Any taxable income from sole trading and distributions from partnerships, trusts and companies. You may need to refer to your profit and loss statements.
  • Investments – This income includes interest from banks, credit unions, building societies, dividends from shares, income from managed investments.
  • Real estate – Rent from all residential or commercial real estate for you or your partner. This can include houses, a room in your house, units, pasture and boats. Net rental property losses are added back into your income.
  • Taxable Government pensions and benefits – Income from taxable pensions and benefits that you or your partner receive, through Centrelink or Veterans' Affairs must be added into your taxable income. These include:
    • Age Pension
    • Disability Support Pension (for people of Age Pension age)
    • Widow Pension
    • Carer Payment (if carer or person being cared for is of Age Pension age)
    • Wife Pension (if wife or husband of Age Pension age)
    • Parenting Payment
    • Bereavement Allowance
    • Newstart Allowance
    • Widow Allowance
    • Sickness Allowance
    • Special Benefit
    • Youth Allowance
    • Mature Age Allowance
    • Mature Age Partner Allowance
    • Partner Allowance
    • Austudy Payment
    • ABSTUDY living Allowance and Dependent Spouse Allowance
    • Education Entry Payment
    • Farm Family Restart
    • Exceptional Circumstances Relief Payment
    Please note: Do not include Family Tax Benefit Part A, Family Tax Benefit Part B, Child Care Benefit, Maternity Allowance, Baby Bonus or Maternity Immunisation Allowance.
  • Other taxable income – This could include income from such things as superannuation withdrawals, capital gains or foreign income for which you pay Australian tax.

[ Top ]