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.

Next steps

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Page last updated: 13 October 2020