JobSeeker Payment and Tax: Is It Taxable in Australia?
Updated: 1 day ago
Quick answer: Yes, JobSeeker Payment is taxable income in Australia. You must declare it in your tax return at the Australian Government allowances and payments question. Most people pay little or no tax on it because of the tax-free threshold and the beneficiary tax offset, but other income can change that.
If you received JobSeeker Payment during 2025-26, this guide explains how the ATO treats it, where it goes on your return, when tax applies, and whether you need to lodge at all. If you would rather have it handled for you, Tax Falcon can prepare and lodge your return online.
Is JobSeeker Payment taxable income in Australia?
Yes. The ATO lists JobSeeker Payment as a taxable Australian Government payment, so it counts towards your taxable income for the year.
It sits in the same group as Youth Allowance, Austudy, Parenting Payment (partnered) and Special Benefit. Because it is taxable, it is added to any wages, interest or other income you earned in the same financial year, and your total taxable income decides how much tax (if any) you owe.
How do you declare JobSeeker Payment on your tax return?
Declare JobSeeker Payment at question 5, Australian Government allowances and payments, using the amounts on your PAYG payment summary (individual non-business) or the letter from Services Australia.
If you lodge through myTax, the ATO pre-fills most government payments for you, but you still need to check the figure and add anything missing. When completing the question:
Income: add up the JobSeeker income from each summary or letter and enter the total at label A.
Tax withheld: add up any tax withheld shown on those documents and enter the total in the tax withheld box for label A.
Other income: declare wages, interest and other payments at their own questions, not at question 5.
Does Centrelink take tax out of JobSeeker Payment?
Sometimes. Any tax withheld from your JobSeeker Payment appears on your statement from Services Australia and is credited against your tax bill when you lodge.
Whether tax is taken out depends on the arrangements you have with Services Australia. If you also have a job, or you came off JobSeeker part way through the year and started earning wages, the combined income can push you into owing tax. Checking your withholding with Services Australia early can help you avoid an unexpected bill at tax time.
What is the beneficiary tax offset for JobSeeker Payment recipients?
The beneficiary tax offset is a tax offset for people who receive certain Centrelink allowances, including JobSeeker Payment, and it directly reduces the tax you would otherwise pay.
You do not need to apply for it or work it out yourself. The ATO calculates it automatically from what you enter at question 5 when it processes your return. If you are eligible for both this offset and the seniors and pensioners tax offset, you only get one, and the ATO applies whichever is higher. You can estimate your amount with the ATO's beneficiary tax offset information and calculator.
Do you need to lodge a tax return if you only received JobSeeker Payment?
Not always. If your only income was a question 5 payment like JobSeeker Payment and your taxable income was $22,575 or less, the ATO says you do not need to lodge, though you should lodge a non-lodgment advice instead.
You do need to lodge if any tax was withheld from your income (that is the only way to get it refunded), or if your taxable income was above $22,575. Here is how common situations usually play out:
Your 2025-26 situation | Do you need to lodge? |
JobSeeker only, taxable income $22,575 or less, no tax withheld | No, lodge a non-lodgment advice |
JobSeeker only, but tax was withheld | Yes, to get the tax withheld back |
JobSeeker plus wages, total taxable income above $22,575 | Yes |
JobSeeker for part of the year, then a job with tax withheld | Yes |
What tax rates apply to JobSeeker Payment and other income in 2025-26?
JobSeeker Payment is taxed at normal resident tax rates, combined with all your other income, with the beneficiary tax offset then reducing the result.
These are the 2025-26 resident tax rates the ATO will use for your return. They do not include the 2% Medicare levy.
Taxable income | Tax on this income |
$0 to $18,200 | Nil |
$18,201 to $45,000 | 16c for each $1 over $18,200 |
$45,001 to $135,000 | $4,288 plus 30c for each $1 over $45,000 |
$135,001 to $190,000 | $31,288 plus 37c for each $1 over $135,000 |
$190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
From 1 July 2026, the rate for the $18,201 to $45,000 bracket drops to 15c, which will apply to your 2026-27 return.
When is the deadline to lodge if you received JobSeeker Payment?
If you lodge your own return, the usual deadline for 2025-26 is 2 November 2026.
Registered tax agents can lodge for clients after 2 November through their lodgment program, but you need to contact them before that date to be included. If you are close to the deadline, using an online service such as Tax Falcon can get your return in on time.
Frequently Asked Questions
Is JobSeeker Payment taxable in Australia?
Yes. JobSeeker Payment is a taxable Australian Government payment, so you must declare it in your tax return at question 5, Australian Government allowances and payments.
Do I have to pay tax on JobSeeker Payment?
Many people pay little or no tax on JobSeeker Payment because of the $18,200 tax-free threshold and the beneficiary tax offset. You may owe tax if you also earned wages or other income in the same year.
Where do I put JobSeeker Payment on my tax return?
Enter it at question 5, label A, using your PAYG payment summary (individual non-business) or the letter from Services Australia. In myTax it is usually pre-filled, but you should check the amount.
Do I need to lodge a tax return if I was on JobSeeker Payment?
If JobSeeker Payment was your only income, your taxable income was $22,575 or less and no tax was withheld, you generally do not need to lodge, but you should lodge a non-lodgment advice. Otherwise you need to lodge a return.
Will I get a tax refund from JobSeeker Payment?
You can only get a refund if tax was withheld from your JobSeeker Payment or other income during the year. Lodging a tax return is the only way to claim back tax that was withheld.
Ready to lodge your return with JobSeeker Payment included?
Tax Falcon makes it simple to declare government payments correctly, claim any offsets you are entitled to and lodge before the deadline. Start your tax return with Tax Falcon today.
