Ask us to withhold tax from your ABSTUDY payment
13 October 2020
This can help you avoid a possible tax debt.
We don’t take tax out of your payment, unless you ask us to.
If you got extra payments and supplements this year due to coronavirus (COVID-19), they may impact your tax return. If you got the taxable Coronavirus Supplement, it counts as income. This means your taxable income might be above the relevant thresholds. You may need to:
- lodge a tax return with the Australian Taxation Office (ATO)
- pay tax
- pay the Medicare levy.
To avoid owing money to the ATO, you can ask us to take tax out from your payment. You can set this up using either your:
You can also send us a completed Tax Deduction Authority form.
If you’re single, getting ABSTUDY as a tertiary student, you may want to ask us to withhold some of your payment. For example, between $5 and $10 each fortnight.
If you’re single, getting ABSTUDY as a masters or doctorate student, you may need to ask us to withhold more. For example, around $35 to $45 each fortnight.
- about paying tax on a Centrelink payment
- information and taxation advice on the ATO website
- our online guide on how to add, update or cancel a tax deduction
- more news for Students.
You can ask us to take tax out of your payment to help you avoid an income tax debt.
There are 3 possible outcomes when we balance Family Tax Benefit (FTB) and Child Care Subsidy (CCS).
Page last updated: 13 October 2020
This information was printed 23 October 2020 from https://www.servicesaustralia.gov.au/individuals/news/ask-us-withhold-tax-from-your-abstudy-payment. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.