Income To Be Declared On The Tax Return?

One of the most important requirements when filing your tax return is that you declare your estimated income and tax deductions, and doing so ensures that you get the maximum amount on your tax return.

Whether you have one or more jobs, full-time, part-time, or occasional jobs, you need to make sure you include all of your business income in your tax return.

Important: If you want to know how to declare income on tax returns, click on Accounting and Bookkeeping Services in Australia.

Here is a list of all the types of income you must declare on your tax return:

  • Work income
  • Private pensions, pensions, and government payments
  • Investment income (including interest, profit, rent, and capital gains tax)
  • Business revenue, partnerships, and trusts
  • Foreign income
  • Public support
  • Another source of income

Let’s take a closer look at each type of income. So you can accurately report your tax return.

1. Declare business income.

Income from work is the money you earn by working. You can get cash on hand. Directly to your bank account or another source

Labor income is divided into 6 parts:

  • Salary and wages (regular wages, commissions, bonuses, allowances, income protection, or policy)
  • Allowances (car expenses, travel expenses, clothing, jury fees, tips, volunteer consultation fees)
  • Economy Sharing (room rent, parking, taxi service, provision of goods and services)
  • Lump-sum payment (annual and unused late payment for previous years)
  • Reportable deductible interest (a low-cost loan for personal use or commercial vehicle from the employer)
  • Personal support (your employer does for you)

2. Pensions, pensions, and government payments will be announced.

You will have to declare the income from the paid pension as Super Income Stream, annual and partial government payments.


It is a series of regular payments which is paid as the best source of income. You must include tax-exempt and non-taxable components in your tax return, but not tax-exempt components.

These payments can be made through:

  • The Australian Super Fund is a life insurance company or provider of Retirement Savings Accounts (RSA).
  • As a result of the death of another person (chain of death related income)
  • CWT is a trust established for the benefit of state or territory employees and their families.


Annual is usually a series of lump-sum payments by a life insurance company. Most annuals have both taxable and non-taxable components.

Government Payments: 

Old Age Pension, Allowance, Study News Start Scholarship, and Youth Pension. Below is a list of tax deductions for government payments. But you still need to state this in your tax return.

  • Disability Pension (if you are under retirement age)
  • Child allowance
  • The caretaker is fine
  • Veterans Affairs Pension and Disability Allowance

3. Investment income (including interest, profit, rent, and capital gains tax)

Taxpayers should declare income from investments, whether they have been paid directly or through partnership distribution. (Such as a sharing club) or a trust.

Read Other: Tax Deduction for Computer or Laptop?

Investment income is divided into 5 parts:


Interest is usually earned on financial accounts, fixed deposits, and foreign sources of income.


These are paid to you, such as money, shares, and other assets. The company that issued your shares will tell you if the issue is a dividend.


This includes all rent and any related rent for the full rent you are entitled to or receive. As mentioned earlier, you cannot declare fictitious rent. Unless it is in the form of a security deposit or rental bond.

Managed Mutual Funds: 

This will be the income or credit you get from the investment product.

Capital Gains: 

This is the difference between the amount paid for your property and the amount you sold.

4. Proceeds from announcements of companies, partnerships, and trusts

Running a business can measure your net income. And you have to declare it on your tax return. Income includes cash and other forms of payment. For the goods or services you provide

Your income as a business:

If you are a naturalized person running a business, you should declare your business income on your tax return. Using separate work functions

If you are an artist or maker and plan to earn or make money such as jewelry, paintings, or pastries. You can use hobby or business tools on

Partnership Earnings:

Even if the partnership does not pay income tax. But it is important to file a partnership tax return showing all income received and all deductions.

Each partner must declare their share of the net income or loss of the partnership in their tax returns and the same applies to CGT stocks or partnerships.

Trust income:

Also, partnership trusts are not separate taxable entities. But the trustee must file a tax return for the trust.

Beneficiaries of trust usually declare the amount of trust income they receive and pay tax on their tax returns, even if they do not receive the income.

The exception is that if the Family Trust Distribution Tax has been paid, you do not need to declare a Trust Distribution.

5. External income showed thereafter

There are two different criteria for declaring foreign income. It depends on whether you are an Australian citizen working in another country or not an Australian resident working in Australia.

All Australians are taxed on their worldwide income. All income must be reported on an Australian tax return. It includes all of the following:

  • Income from foreign workers
  • Overseas pensions and pensions
  • Income from foreign trade
  • Income from foreign investment
  • Definition of capital from external assets

If you are a non-resident working in Australia during the financial year, you only need to report your Australian income on your Australian tax return. The rules may vary for your country of residence. Therefore, it is highly recommended that these laws be reviewed.

6. Crowdfunding for advertising

Crowdfunding is a way of using the internet and/or social media or other means to find supporters and investors to raise money for a particular fund or endeavor. There are currently four types of crowdfunding:

  • Charity is a payment without expecting or receiving anything in return. Donations can be accepted through the fund.
  • As a reward, when the promoter gives goods, services, or rights to a financier in return for the money paid. This can be in the form of discounts, consignments, etc.
  • An equity-based one is when a promoter pays interest or capital shares to a financier in return for its payment.
  • The loan is a little different in that the borrower pays the promoter, who then agrees to pay interest on the loan.
  • Fundraising is difficult when you think about where you will report the amount on your tax return. This can be determine by deciding what type of crowdfunding you are dealing with.

7. Other income to be declared.

Any other income that you have to declare on your tax return including item 24Y.

  • Wages or wages loss compensation and insurance
  • Option to receive shares under a stock discount or employee participation program.
  • Awards and prizes
  • ATO interest – installment or payment

Read More:  How to Control Your Finances This Year

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