Payment of Tax Withholdings at Pensioner's Request

Pensioner may have tax withheld from pension

A pensioner can ask for tax withholdings to be made and paid directly to the Commissioner of Taxation. This method is often used as a budget measure to avoid an end of financial year tax bill.

Which pensions can have tax withheld?

The following payments can have tax withheld from them for payment to the Australian Tax Office:

• disability compensation payment, war widow's/widower's pension,
• orphan's pension,
• service pension, veteran payment and income support supplement (ISS),
• clothing allowance, attendant allowance, decoration allowance, recreation transport allowance,
• allowances paid under the Veterans' Children Education Scheme(VCES), and
• Defence Force Income Support Allowance (DFISA) and DFISA-like which ceased 1 January 2022.
  More →

   

  Veterans' Entitlements (Direct Deductions Arrangements) Instrument 2005

  http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200509323?OpenDocument

   

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Pensioner must make request for withholdings in writing

In order to have tax directly withheld from pension payments, a pensioner must request in writing that a specific fortnightly amount is to be withheld.