Does your tax change if you are a carer?
As a carer, there are a few things you should know about your tax.
The Australian Taxation Office website has a lot of information about your tax. If you need extra help or advice, you can talk to an accountant or tax agent. If you have a low income and need help to fill in your tax return, you can contact the Tax Help program for advice.
The information provided below may vary depending on your individual circumstances. You can contact Services Australia for further advice.
If you or the person you care for are under age pension aged and gets a payment from the government
… you don’t pay tax on those payments.
Payments that are free from tax include the Carer Payment (where the carer and the care recipient are both under Age Pension age), Carer Allowance, Carer Supplement, and other payments for families, Aboriginal and Torres Strait Islander people, or young carers.
When you are filling in your tax return, you don't need to include these amounts in your assessable income, but you still need to declare them at the correct item on your return.
If you or the person you care for is of Age Pension age and you get Carer Payment or Age Pension
… then your Carer Payment is taxable. You can find information on taxable payments including how to set up tax deductions on the Services Australia website.
If you are a carer and have other income apart from government payments
… you may be able to get a ‘tax offset’, which reduces how much tax you need to pay.
You can only get the offset in certain circumstances. You can use the tax offset calculator to find out how much tax offset you can claim.
If you care for a dependent child
… you may be able to get a Family Tax Benefit that reduces the amount of tax you need to pay on your income.
You might be able to get this payment if you care for a dependent child or student (younger than 20 years) at least 35% of the time and meet an income test.
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