An email from a friend
to me
www.humanservices.gov.au/individuals/services/centrelink/centrelink-payment-summaryPayments shown on your payment summaryTaxable payments that will be displayed on your payment summary are:
· ABSTUDY
· Age Pension
· Australian Government Emergency Payment
· Austudy Payment
· Bereavement
· BSWAT lump sum in arrears
· Carer Payment
· CDEP Participant Supplement
· Dad and Partner Pay
· Disability Support Pension
· Disaster Recovery Allowance
· Drought Relief Payment
· Education Entry Payment
· Emergency and General Assistance Payment
· Emergency Recovery Payment
· Exceptional Circumstances Relief Payment
· Farm Household Allowance
· Newstart Allowance
· North Western Queensland Floods
· Parental Leave Pay
· Parenting Payment Partnered
· Parenting Payment Single
· Partner Allowance
· Pensioner Partner Allowance
· Pensions Mature Age Allowance
· Sickness Allowance
· Special Benefit
· Widow Allowance
· Widow B Pension
· Widow Person Allowance
· Wife Pension Age
· Wife Pension Disability
· Youth Allowance
You will also receive a payment summary if you receive any of the non-taxable payments of:
· Carer Payment
· Disability Support Pension
· Wife Pension Age
· Wife Pension Disability
Typical Centrelink being bloody confusing and ambiguous.
DSP is shown as TAXABLE then in the second category as NON TAXABLE. In practice I THINK what this means is the income statement shows all income as TAXABLE debit then on the next line is shown as, in DSP case, as a NON TAXABLE CREDIT.
So, one cancels the other out...................
With the low income allowance by the ATO for those on OAP and with extra income, the threshold is much higher for net income to attract any tax. Those on DSP don't have their DSP amount counted and in theory could therefore have much more income to stay below the tax free threshold, BUT CL would penalize anyone on DSP who has income.
So, it makes sense to remain on DSP UP rather than convert to OAP as in most peoples case with no extra income to stay below the CL threshold and well below the ATO income threshold, a DSP can stay exempt from having to submit a tax return