When people think tax returns, the most obvious income streams come to mind – your current income from your job, and the tax claims you are entitled to make.
However, there’s usually more than one string to your income bow and many people simply forget about them – with the ATO though, there’s no excuse. You have to declare it all, so here are the top 8 streams of income you need to be aware of. It’s not all doom and gloom, though. By declaring these income streams you may be able to claim more deductions than you first thought.
Part 1: Employment income
Part 2: Super pensions, annuities and government payments
Part 3: Investment income (including interest, dividends, rent and capital gains)
Part 4: Business, partnership and trust income
Part 5: Foreign income
Part 6: Crowdfunding
Part 7: The sharing economy and tax
Part 8: Other income, such as:
- compensation and insurance payments
- discounted shares under employee share schemes
So, let’s start with our #1 Top Tax Income Stream.
Employment income is money you receive from working. You may be paid with cash, transferred into your bank account, or in another way.
Regardless of whether you have one, two, three jobs or more, work full time, part-time or are a casual worker, you’ll need to make sure all of your employment income is included on your tax return.
The most common types of employment income is salary and wages. Salary and wages includes:
- your normal weekly, fortnightly or monthly pay
- bonuses (including retention bonuses to remain with your employer)
- money for part-time or casual work
- parental leave pay
- dad-and-partner pay
- payments from
- an income protection policy
- a sickness or accident insurance policy
- a worker’s compensation scheme
- pay and allowances for continuous full-time service in the Australian Naval, Army or Air Force Reserve
- foreign employment income – if you are an employee of an Australian Government agency (and not a member of a disciplined force), include income earned from delivering Australian official development assistance.
Include all of your jobs
Don’t forget, if you’ve changed jobs during the financial year you’ll need to bring in a record for each job. Even if you’ve worked twenty jobs, you’ll need to round up all individual income statements from your employer – they all count towards your overall income.
Include all of your records
You’ll want to bring in all your receipts to back up your claims – some might just surprise you. It’s a good idea to speak to your tax agent throughout the year. They can tell you what records to keep and what you should be claiming so you’re in the know come tax time. It’s your money, you should claim everything you’re entitled to.
There’s no doubt that lodging a tax return can be complex, especially when several streams of income need to be declared. Tax agents are fully certified accountants who have specialised in tax law. They understand the latest changes and what you need to include on your return – even if you don’t. All ITP Income Tax Professional branches are registered with the Tax Practitioners Board of Australia.
Book an appointment and speak to a professional today.
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