Below are some of the types of the Income you may need to report on your tax return, along with a brief description
- Salary and Wages - This is usually the money that you earn from your employment. Your employer will usually withhold an amount of Pay As You Go (PAYG) tax.
- Goverment payments, allowances and pensions - These government payments will be included as income. In some cases these will include tax withheld or can even be tax free.
- Gross Interest - Any interest paid to you from bank accounts or term deposits will be reported as income.
- Dividends - If you have shares in a company and they pay you a dividend, this will need to be reports as income, along with any associated franking credits.
- Partnership or trust income - Any investment in a partnership or trust will usually pay you an amount of return. You will be provided with a tax statement from the trust or managed fund you have invested in and this will be reported as Income.
- Small Business Income - If you operate as a sole trader, the profit you make will be reported as income on your tax return
- Capital Gains - If you make a gain on a sale of an asset, this will be reported as income on your return. However if you make a capital loss, this will be carried forward until you make a capital gain, to which it will offset.
- Rental Income - If you make a profit on your rental property, you will need to include this as income on your tax return. However if you make a loss, this will reduce your taxable income.
- Foreign Income - Any income you earn from a foreign source will need to be included as income on your tax return. You will also need to include any foreign tax paid, as this will offset some of the tax payable in Australia.
Please note that these are only some of the sources of income in Australia and there are various other sources. These brief descriptions can not be solely relied upon. If you required more information regarding your income, please contact us here at Nixer.