You generally need to declare investment income whether or not it's paid directly to you or through distributions from a partnership (such as a share club) or a trust.
Follow the links below for information about the investment income you must declare:
If you're an Australian resident and you receive interest, you must declare it as income. Interest income includes:
- interest earned from financial institution accounts and term deposits
- Interest earned from children's savings accounts if you opened or operated an account for a child and the funds in the account belonged to you, or you spent or used the funds in the account
- interest we paid or credited to you
- life insurance bonuses (you may be entitled to a tax offset equal to 30% of any bonus amounts included in your income)
- interest from foreign sources (you may be entitled to a tax offset for any tax paid on this income).
A dividend can be paid to you as money or other property, including shares. If you are paid or credited with bonus shares, the company issuing the shares should provide you with a statement indicating whether the bonus shares qualify as a dividend.
Dividend income is usually paid from a:
- listed investment company
- public trading trust
- corporate unit trust
- corporate limited partnership (in the form of a distribution).
Some dividends have an imputation or franking credit attached, which you must also declare on your tax return. If a company pays or credits you with dividends that have been franked, you'll generally be entitled to a franking tax offset.
You must declare the full amount of any rent and rent-related payments that you receive, or become entitled to, on your tax return.
Such payments include:
- rental bond money if you become entitled to retain it - for example, because a tenant defaulted on the rent or because of damage to your rental property requiring repairs
- an insurance payout to compensate you for lost rent
- a letting or booking fee
- a reimbursement or recoupment for deductible expenditure, such as an amount from a tenant to cover the cost of repairing damage to your rental property (where you would include the whole amount you receive from the tenant in your income and claim a deduction for the cost of the repairs)
- rent you receive from renting out a room or a whole house or unit for a short time basis, through a website or app.
If you receive goods and services in lieu of rent, you must work out and declare the monetary value.
If you own a rental property jointly or in common with another person, or if you have an interest in a partnership that carries on a rental property business, include only your share of rent and expenses on your tax return.
Managed investment trusts
You must show any income or credits you receive from any trust investment product on your tax return. This includes income or credits from a:
- cash management trust
- money market trust
- mortgage trust
- unit trust
- managed fund, such as a property trust, share trust, equity trust, growth trust, imputation trust or balanced trust.
Generally, your capital gain is the difference between your asset's cost base (what you paid for it) and your capital proceeds (what you received for it).
You can also make a capital gain if a managed fund or other unit trust distributes a capital gain to you.
A capital gain is treated as part of your total income and not taxed separately.
You must declare investment income on your tax return, including interest you received, interest from your children's savings accounts, life insurance bonuses, dividends you are paid as a shareholder, rent that you receive, capital gains on assets sold, and income or credits you receive from any trust investment product.