What Income do I need to Declare?


Your income is declared on your tax return each year.

Most of this information is provided to the ATO from employers and financial institutions, but there is also some that you will need to provide additionally. It is your responsibility to ensure that all amounts are accurate and complete regardless of who has provided the information.

The types of Income that you are required to declare include:

  • Employment income

  • Super pensions, annuities and government payments

  • Investment income (including interest, dividends, rent and capital gains tax)

  • Business, partnership and trust income

  • Foreign income

  • Crowdfunding

  • Other income - including compensation and insurance payments, discounted shares under employee share schemes, and prizes and awards.

Employment Income

Employment income is money you receive from working. You may be paid cash-in-hand, directly into your bank account, or in another way.

Regardless of whether you have one job or more, are full time, part-time or casual you need to make sure all of your employment income is included on your tax return.

Salary and Wages

The most common type of employment income is salary and wages.

Salary and wages includes:

  • your normal weekly, fortnightly or monthly pay

  • commissions

  • bonuses

  • money for part-time or casual work

  • parental leave pay

  • dad-and-partner pay

  • payments from

  • an income protection policy

  • a sickness or accident insurance policy

  • a workers compensation scheme.

  • foreign employment income. If you are an Australian Government agency employee (and not a member of a disciplined force), your income earned from delivering Australian official development assistance needs to be declared with Salary and Wages

Allowances and Other Employment Income

You may receive other payments in connection with your employment such as:

  • allowances, such as car, travel, clothing and laundry

  • tips, gratuities and payments for your services

  • consultation fees and payments for voluntary services

  • jury attendance fees.

The Sharing Economy

The sharing economy is a way of connecting buyers and sellers, usually via an app or website. If you are engaged in the sharing economy, the income and deductions from those enterprises needs to be included on your tax return.

Examples include services such as:

  • providing taxi travel services through 'ride-sourcing'

  • renting out a room or house for accommodation

  • renting out parking spaces

  • providing skilled services – web or trade services, etc

  • supplying equipment, tools, etc

  • completing odd jobs, errands, deliveries, etc.

Lump Sum Payments

There are two common types of lump sum payments:

  • When you leave a job, you may receive a lump sum payment for unused annual, long service leave or special leave you may have been entitled to had you not left your job.

  • The second is a lump sum payment in arrears for money owed to you from an earlier income year.

Both of these lump sum payments are assessable in the year you receive them

Reportable Fringe Benefits and Super Contributions

Other employment-related income includes:

  • reportable fringe benefits given to you by your employer, such as a work car for private purposes, a cheap loan or free private health insurance

  • reportable super contributions made on your behalf by your employer.

You don't have to pay tax on these items but they are used to work out whether you are eligible to receive a range of government benefits and tax offsets.

Super Pensions, Annuities & Government Payments

You must declare income you received from pensions paid to you as a super income stream, annuities and some government payments.

Pensions

A pension is a series of regular payments made as a super income stream (this does not include government payments such as the age pension).

These payments may be made by:

  • an Australian super fund, life assurance company or retirement savings account (RSA) provider

  • a fund established for the benefit of Commonwealth, state or territory employees and their dependants (such as the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme)

  • as a result of another person's death (death benefit income stream).

What you need to declare

Your super income stream payments will have different components. You need to include the following components on your tax return: