Does age pension benefit count as taxable income?

There are certain Australian Government payments, pensions and allowances that must be declared on your tax return. The most common benefits include:

• Age pension

• Carer payment

• Austudy

• Newstart

• JobSeeker payment

• Youth Allowance

• Parenting Payment

For a full list of Australian Government payments, pensions and allowances that must be declared on your tax return, see:

• Australian Government allowances and payments

• Australian Government pensions and allowances

• Tax-free government pensions or benefits.

Age pension is taxable and required to report in individual tax return.  If you are a senior Australian, you may be eligible for the seniors and pensioners tax offset (SAPTO). However, you can't claim the SAPTO if you were imprisoned for the whole income year.

The SAPTO can reduce the amount of tax you are liable to pay. In some cases, it may reduce your tax payable to zero and you may not have to lodge a tax return. (SAPTO is a non-refundable tax offset.)

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