What Income Is Not Taxable?

A great mortgage broker will have a broad range of knowledge regarding income tax to successfully assist their clients with any questions or concerns that may arise. Australian citizens are required to pay taxes on income exceeding $18,200 per year, but there are some forms of income that are not taxable, including the following examples:

• Specific lump sum payments that a beneficial owner of an insurance policy receives upon surrender, including payments for permanent work-related injuries, mortgage protections, and terminal illnesses
• Specific educational payments from the Australian government, including payments for Commonwealth secondary education assistance and allowances paid to students under the age of 16
• Specific pensions paid by the Australian government, including disability support pension payments and service pension payments made to veterans under pension age
• Specific allowances and payments made by the Australian government, including carer allowance payments and child care subsidy payments
• Funds gifted by friends and family members for special occasions
• Funds received through raffles or lottery draws
• Funds received through child support payments or spousal maintenance payments

As we mentioned previously the tax-free threshold for 2022 in Australia is $18,200. This indicated that Australian citizens are not required to pay taxes on $18,200 of their yearly income. 

What Income Is Taxable?

• Salaries earned in a year
• Wages earned in a year
• Bonuses received in a year
• Investment income earned in a year
• Commissions earned in a year
• Tips earned in a year
• Fringe benefits earned in a year