Salary and wages
The most common type of employment income is salary and wages, whether you have one job or more, and whether you work full time, part time or casual. This income may be cash-in-hand, direct payments into your bank account or payment you receive in another way.
Salary and wage payments you need to declare in your tax return include:
- your normal weekly, fortnightly or monthly pay
- commissions
- bonuses, including retention bonuses to remain with your employer
- money for part-time or casual work
- parental leave pay
- payments from
- an income protection insurance policy
- a sickness or accident insurance policy
- a workers compensation scheme
- pay and allowances for continuous full-time service in the Australian Naval, Army or Air Force Reserve (but you may not have to declare salary and allowances while deployed overseas)
- income you receive in connection with a joint space and defence project – unless exempt from Australian income tax
- foreign employment income – unless exempt from Australian income tax.
If you're an employee of an Australian Government agency (and not a member of a disciplined force), include income you earn from delivering Australian official development assistance.
Allowances, payments and other work-related income
You may receive allowances, payments or other work-related income that you need to declare in your tax return. These may include:
- allowances, including travel and overtime meal allowances
- cash tips, gratuities and payments for your services
- consultation fees and payments for voluntary services
- jury attendance fees
- income earned from providing services or assets through a digital platform or app (sharing economy).
Lump sum payments
A lump sum payment is a one-time payment from a payer rather than payments throughout the income year. You include lump sum payments as assessable income in your tax return in the income year you receive the amount.
Lump sum payments usually occur:
- when you leave a job, for amounts such as
- an employment termination payment (ETP)
- a genuine redundancy payment
- an approved early retirement scheme payment that exceeds the tax-free limit
- unused annual leave, long service leave or special leave
- for amounts a payer owes you from an earlier income year (see, Lump sum payments in arrears).
Reportable fringe benefits and super contributions
You need to declare:
- reportable fringe benefits you receive from 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 amounts. We use these amounts to work out whether you're eligible to receive certain government benefits and tax offsets.