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What we call income
Income includes money you earn, derive or get for your own use or benefit, profits and some regular payments such as a gift or allowance.
It can be in the form of money, goods, services or other benefits in return for an item, action or promise.
We use the gross amount in the income test. The gross amount is the amount before tax or any other deductions. However, if you own a business, or trade through a private trust or private company, we use the gross income minus allowable deductions.
The income test includes income from anywhere in the world, not just Australia. This includes pensions from other countries. Find out about overseas income.
What we call assessable income
This is the amount we count in your income test. This also includes your partner’s income.
Examples of assessable income
Assessable income includes the gross employment income you earn from work. This can be:
- wages
- bonuses
- penalty rates and overtime
- some work related allowances
- commissions
- fringe benefits
- amounts you salary sacrifice
- directors fees.
Find out more about employment income.
Assessable income can also be:
- real estate income from things like rental properties
- income from boarders and lodgers who aren’t immediate family members
- deemed income from financial investments
- deemed income from money in superannuation funds if you’ve reached Age Pension age
- income from a sole trader or partnership business
- income from a farm
- attributed income from a private trust or private company
- distributions or dividends from a private trust or private company
- reportable superannuation contributions
- pay to a member of the Australian Defence Force Reserve for continuous full-time service
- some lump sums
- some types of income specific to Indigenous Australians
- Paid Parental Leave payments
- certain scholarship amounts
- The Commonwealth Prac Payment
- winnings you get by chance that are paid to you over time
- winnings earned by skill
- deemed income from Home Equity Access Scheme advance payments.
Deeming
Deeming is the method we use to work out the income from your financial assets. We include this deemed income in your income test.
Find out more about deeming.
Details we need from you
Normally we ask for your gross income.
If you own a business or rental property we’ll also ask for one or both of the following:
- income tax return
- profit and loss statement.
This is because we assess the gross income minus allowable deductions.
If your Centrelink online account is linked to myGov you can:
- report your income
- update details of your savings, shares, managed investments, income streams, real estate and other assets
- report any gifts you get.
If you don’t have a myGov account or a Centrelink online account, you’ll need to create them.
What we call exempt income
This is income we don’t include in your income test. You may still need to tell us if the value of your assets change.
Examples of exempt income
Exempt income can be:
- rent assistance from government
- most payments from us - these may still count in the Family Tax Benefit income test
- compensation for loss or damage to things you own
- child support - this may still affect your Family Tax Benefit Part A
- any free board and lodging you get
- any money from board or lodging you get from immediate family members
- regular payments from a close relative
- emergency relief or similar assistance
- payments as a victim of National Socialist persecution
- First Home Saver Account withdrawals or interest
- repayment for expenses
- some allowances if you spend the whole amount on what it’s meant for, for example, work travel
- payments through a National Disability Insurance Scheme package
- pay and allowances to a member of the Australian Defence Force Reserve, for part-time service and training
- some lump sums.