When it is time to work with your taxes, you need to make sure that you add all the right income. This will help keep you in compliance with the government and will ensure that you are paying the right amount. However, it is possible that you will make the mistake of adding some non-taxable income to the taxes, which will cost you a lot of money in taxes as well.

The ATO is going to consider some income that you earn as non-taxable. This is income that you should not put onto the tax return at all or you will pay more in taxes than you should. This can be complicated though. Sometimes you will want to avoid it and other times you will want to use it to help with tax losses from before. A tax professional will be able to help out with this.

The first thing to consider is which types of income are considered non-taxable. Some examples include:

1. Some types of pensions will not be taxable. This can include disability support pensions that are given to those who are younger than the traditional pension age.
2. Some allowances and payments from the Australian government. This could include the carer allowance or the childcare subsidy.
3. Any overseas pay and allowances for the Defense Force and Federal Police
4. Any education payments from the Australian Government, including the allowances that are given to students who are 16 and younger.
5. Some grants, awards, and scholarships that are available.
6. Any lump-sum payments that are from the surrender of an insurance policy, mortgage protection, or as a payment after being injured by work or having a terminal illness.

If you have something else that you figure will be a non-taxable income, then it is a good idea to work with a tax professional. They will be able to look at whether the income should be taxed or not. If it is not taxable, you will be able to take it off the return and save money on how much you will be taxed overall.

There are a number of tax reduction strategies out there that you can choose. One of these is to make sure that you do not include non-taxable income on the tax return. This will lower the tax bill and can provide you with more money in your pocket at the end of the year. Work with your tax professional to ensure that you are getting the most out of tax season.