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PhillT(Initiate)Initiate
6 Apr 2024

My name is Geraldine, I'm on my husbands login page. I need help understanding why I'm needing to pay tax on my disability/age pension? I've searched the web & found many confusing answers. One of the answers is I don't have to pay tax on my pension & another is I should be eligible for a tax exemption. I was born & raised in WA, & I've never been on the wrong side of the law (minus a few speeding tickets 🤫), I raised 4 kids & helped on the family farm which paid tax. The only extra income I receive is a pittance from the interest from a savings account, on other income. Between my pension as one of a couple, & the interest, which is under $130.00 a fortnight, I shouldn't be paying tax. What's the point of getting a pension rise, if it's taken away from you through tax? 🥺

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1,290 views
2 replies

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Taxduck(Taxicorn)Taxicorn
6 Apr 2024

If you receive a Disability Support Pension and you are 67 or older then the pension is taxable income. (same as the age pension). Whether you need to pay tax depends on your total taxable income, what deductions you have and what tax offsets you are entitled to. Check this link on Senior Australian and Pensioner Tax Offset (SAPTO)

https://www.ato.gov.au/calculators-and-tools/tax-offsets-beneficiaries-and-seniors-and-pensioners-calculator

If your income is as you say it is then the SAPTO you would be entitled to should mean that you don't pay any tax.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
6 Apr 2024

If you receive a Disability Support Pension and you are 67 or older then the pension is taxable income. (same as the age pension). Whether you need to pay tax depends on your total taxable income, what deductions you have and what tax offsets you are entitled to. Check this link on Senior Australian and Pensioner Tax Offset (SAPTO)

https://www.ato.gov.au/calculators-and-tools/tax-offsets-beneficiaries-and-seniors-and-pensioners-calculator

If your income is as you say it is then the SAPTO you would be entitled to should mean that you don't pay any tax.

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I need help understanding why I'm needing to pay tax on my disability/age pension? | ATO Community