The amounts you don’t need to include as income

February 15, 2021 8:32 am | Published by | Categorised in:

Amounts which are not classified as income are split into 3 categories.

Exempt income

This is income that you do not pay tax on, although, some exempt income may be taken into account when determining:

  • Tax losses of earlier income years that you can deduct
  • Adjusted taxable income of dependants

Some examples include certain Government pensions, certain Government allowances, certain overseas pay, some scholarships, etc.

Non-assessable, non-exempt income

This is also income that you don’t pay tax on – it does not affect your tax losses.

Some examples include the tax-free component of an employment termination payment (ETP), genuine redundancy payments, super co-contributions, etc.

Other amounts

There are also other amounts that are not taxable.

Some examples include: Rewards or gifts received on special occasions, prizes won in ordinary lotteries, child support and spouse maintenance payments, etc.