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RLZhang(Enthusiast)Registered Tax Professional
20 Sept 2023

Hi all,


I would like to ask has anyone heard of this income exemption. For migration purpose, centerlink requires certain people to put in a bond which is in the form of term deposit with Commonwealth bank say for a period of 5 years or 10 years. Regarding interest income from that term deposit, is there any income tax exemption? My client saying that she heard from Centerlink that it is not taxable income, and on her bank statement summary, there is no Tax file no provided, but no tax was withheld either. Thank you!

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1 replies
482 views
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Most helpful reply

DanielleATO(Community Support)Community Support
21 Sept 2023

Hi @RLZhang,


This is through Services Australia, not the ATO.


The bond itself may not have any tax amounts withheld. However, the financial institution that holds the bond. If no TFN is provided, may withhold tax.


The payments that are covered by the AoS are taxable government payments.


For further questions you would need to direct them to Services Australia.

All replies

Most helpful reply

DanielleATO(Community Support)Community Support
21 Sept 2023

Hi @RLZhang,


This is through Services Australia, not the ATO.


The bond itself may not have any tax amounts withheld. However, the financial institution that holds the bond. If no TFN is provided, may withhold tax.


The payments that are covered by the AoS are taxable government payments.


For further questions you would need to direct them to Services Australia.

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