What is Exempt Income?

Exempt income is income that cannot be taxed - ie. not assessable. However, exempt income, although not taxable, may be used to assess other government benefits and liabilities (eg Family Tax Benefit, Centrelink entitlements and child support liability).

Examples of exempt income include:
a some government pensions and payments, including the invalidity pension
a some education payments.

Note: If the only income you receive during a financial year ending 30 June is exempt income you do not have to pay any income tax on it.

FREE Fact Sheet ==> Exempt Australian Government Pensions and Benefits

By David Maynard

CEO - My Tax Zone

Copyright 2014. My Tax Zone.