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As an individual taxpayer if you received any government assistance, allowances and payments you are entitled to a beneficiary tax offset. So if you are getting one or more number of allowances, benefits or social security payments you can reduce your tax liability by claiming the beneficiary tax offset. A tax offset will directly reduce the amount of tax you pay. The beneficiary tax offset is available if you receive more than $6,000 of an assessable government payment in a financial year. To claim the offset, you must enter the payment you receive at the correct item on your tax return. The ATO will automatically calculate the offset for you when they process your tax return. The offset will only reduce your tax; it will not reduce any Medicare levy you may have to pay.

The government provides financial and other assistance to people under a variety of programs. Depending on your circumstances you may be entitled to one or more of the following Australian Government payments:

  • Newstart allowance;
  • Youth allowance;
  • Austudy payment; 
  • Parenting payment (partnered);
  • Partner allowance; 
  • Sickness allowance; 
  • Special benefit;
  • Widow allowance;
  • Farm household allowance;
  • An education payment of any of the following when you were 16 years old or older:
  1. ABSTUDY living allowance;
  2. Payment under the Veterans' Children Education Scheme;
  3. Payment under the Military Rehabilitation and Compensation Act Education and Training Scheme 2004, shown as 'MRCA Education Allowance' on your PAYG payment summary - individual non-business;
  • Other taxable Commonwealth education or training payments shown on your payment summary;
  • An income support component from a Community Development Employment Project (CDEP) shown as 'Community Development Employment Projects (CDEP) payments' on your PAYG payment summary - individual non-business; 
  • A CDEP scheme participant supplement; 
  • Disaster recovery allowance.

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