Beneficiary tax offset

If you receive certain Centrelink benefits and/or Commonwealth education allowances, you are eligible for the beneficiary tax offset. This tax offset will directly reduce the amount of tax owed to the ATO.


If you have not accumulated any tax payable for the year, then you are not eligible for the beneficiary tax offset. You pay no tax for the year if the both of the following apply to you only receive any of the qualifying payments and allowances and have no other taxable income.


Payment Types:
  • Newstart Allowance
  • Youth Allowance
  • Austudy payment
  • Parenting payment (partnered)
  • Partner allowance
  • Sickness allowance
  • Special benefit
  • Widow allowance
  • Exceptional circumstances relief payment
  • Interim income support payment
  • An education payment of any of the following when you were 16 years old or older:
    • ABSTUDY living allowance
    • Payment under the Veterans’ Children Education Scheme
    • 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
  • An income support component of 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.


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