Completing your tax return

You need to declare interest in the year it was credited or received, which is when you became entitled to the funds.

Term deposits

For term deposits, you must declare the interest in the year the investment matures or when interest is credited to your account. Even if you decide to rollover your investment, rather than withdraw the interest, you are still required to declare the interest earned at the rollover date.

If you declared the interest in another income year, you will need to let us know.

Phone us on the number provided on your letter and we may adjust your tax return to ensure your interest income is declared in the income year in which it was received.

Business accounts

If you are a sole trader and earned interest from a business account, you still need to declare the interest at the Gross interest label on your individual tax return. Do not report it as business income on your business schedule, as sole traders are not considered a separate entity.

You may need to send us a breakdown of the amount you included at the business income label so we can verify that you declared the interest.

Using the correct label on your tax return

The correct labels for declaring interest on your tax return are listed below. They differ by tax return type and financial year.

Reporting gross interest on your tax return

Tax return type

Financial year

Gross interest is declared at

Individual / sole trader

2010 onwards

Question 10 label L


2011 onwards

Question 6 label F

Trust / partnership

2011 onwards

Question 11 label J


2011 onwards

Question 10 label C

If you have declared the interest at another label, phone us on the number provided on your letter and we may adjust your tax return to ensure that your interest income is correctly reported.

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Last modified: 11 Feb 2016QC 41728