Adjusted Taxable Income and Family Tax Benefit

Lkatatonic289 on 18/09/2024 - 19:15

Hi all. My tax return has just gone through, and my deductions this year were significant. I noticed tonight when updating my estimated family income with Centrelink that it uses "Adjusted Taxable Income" to make its calculations.

It seems to me from the website ( https://www.servicesaustralia.gov.au/what-adjusted-taxable-i… ) that I would be right to use the lower figure (post-deductions) for my taxable income.

Is that right? Totally understand that any answers below won't constitute financial advice from a legal perspective!

Financial Taxation

Comments

  • miwahni on 18/09/2024 - 20:57
    +1

    Without knowing what category your deductions fit into, no-one can help you with this other than Centrelink.

  • Crow K on 18/09/2024 - 21:29
    +6

    Assessable income less allowable deductions is your taxable income. This is the final net figure on your tax return and your Notice of Assessment.

    Some means-tested services make adjustments to your taxable income to get a better picture of your overall situation, and this is called your adjusted taxable income

    e.g. if you claimed a $10,000 deduction for a personal super contribution in your tax return, they figure out this was disposable income you used to get a better tax position, so they'll add it back on. In this situation your adjusted taxable income would be $10,000 higher than your taxable income.

  • thedeep on 18/09/2024 - 22:14

    You already have the link for the items that get added back. The general idea is that your income is adjusted to add back items which your employer is essentially paying you extra in a different way (eg reportable fringe benefits and additional superannuation contributions) or investment losses (eg a negatively geared rental property).

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