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.
Follow the links below for information on the types of employment income you need to declare your:
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
- money for part-time or casual work
- parental leave pay
- payments from
- an income protection policy
- a sickness or accident insurance policy
- a workers compensation scheme.
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.
If you received a travel allowance or overtime meal allowance paid under an industrial law, award or agreement, you don't have to include it on your tax return if it meets all of the following:
- it was not shown on your payment summary
- it does not exceed the Commissioner of Taxation's reasonable allowance amount
- you spent the whole amount on deductible expenses.
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 and long service leave.
- 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.
You must declare all employment income, payments and benefits on your tax return, including salary and wages, allowances and other employment income, lump sum payments, fringe benefits and super contributions.