Tax Returns – What Income do I need to declare in my tax return?

All the taxpayers are required to lodge Income Tax Return by 31st October 2018 for the tax return 2017-2018 financial year. Every taxpayer needs to report income from all sources of Australia and if you are Australian resident the income from foreign sources as well.

What incomes do I need to show in my tax return?

Salary and wages includes:

  • Full time, Part Time or Casual pay weather weekly, fortnightly or monthly pay
  • commissions and bonuses (including retention bonuses to remain with your employer)
  • parental leave pay or dad-and-partner pay
  • payments from Income proptection poliies and other insurances

Allowances and other employment income

  • Allowances which are separately identified payments made to you by your employer including
  • car allowance,
  • travel allowance,
  • clothing and laundry allowance
  • Other Special Allowances

Investment Incomes

  • Interest – Check your online banking
  • Dividends – Check your dividend statements and online reports
  • Rent – Rental report from property agent or self prepared report.
  • Managed investment funds – Check Annual Tax Statement
  • Capital gains – Depending on the sale of shares, property, business or other assets.

Income from Business, Partnership and Trust

  • You need to calculate your Profit or Loss from business conducted as a Sole Trader with personal ABN [Australian Business Number]
  • Distribution of partnership – Check Partnership financials or Partnership tax return
  • Trust Distribution – Check Trust distribution declaration or Trust Tax Return.

The Sharing economy

  • UBER – providing taxi travel services through ‘ride-sourcing’
  • AIRBNB – renting out a room or house for accommodation
  • PARKING APPS – renting out parking spaces
  • FREELANCERS WORKING ONLINE – providing skilled services (for example web or trade services)
  • AIRTASKER -supplying equipment, tools, etc ,completing odd jobs, errands, deliveries, etc.

Lump sum payments

  • Lump Sum Payments like – unused annual, long service leave or special leave
  • Any back payments or Termination Payment

Reportable fringe benefits and super contributions

  • Reportable fringe benefits given to you by your workplace for reporting purposes only – This would usually be stated in your Group certificate or PAYG Summary
    Reportable super contributions made on your behalf by your employer.

Super pensions, annuities and government payments

  • These incomes are 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 or other pensions.
  • Annuities
  • An annuity is usually a series of regular payments made in return for a lump sum payment. Such as Life Insurance

Government payments

  • Disability support pension
  • Child disability payment
  • Carer payment
  • Veterans’ Affairs disability pensions and allowances.

Foreign income

  • Australian tax resident is taxed on worldwide income which can include following foreign incomes:
  • Foreign pensions and annuities – Check the double tax agreements between countries.
  • foreign employment income – Jobs completed in foreign soil – physically or remoteley
  • foreign investment income – Rental Properties and other investments including Shares and Managed funds or Cash
  • foreign business income – Profit from foreign business under your name
  • capital gains on overseas assets. – Sale of overseas assets.
Other Incomes
  • Cryptocurrencies
  • Bitcoin etc
  • Crowdfunding incomes