Tax Return:: Income That Must Be Declared On Your Tax Return and Income That Is Exempt

Hello, this is your tax and super specialist, P&C Tax Professionals.

Today we have brought to you a summary of the income that must be declared on your annual tax return and those that are exempt. Let’s begin with the income that must be reported in your tax return.

<Income that must be declared>

> Employment income (i.e., income you receive from your regular job)

> Super pensions and annuities income

> Government payments/allowances

> Investment income

> Partnership, trust and business income

> Foreign income

> Other income (e.g., could be compensation and/or insurance payments, income from discounted shares under the employee share schemes and payment received from prizes and awards)

> Crowdfunding

> The sharing economy

- Ride-sourcing such as Uber, Didi, Ola, etc.

- Renting an accommodation on a temporary basis using platforms such as Airbnb, HomeAway, etc.

- Sharing of assets such as cars and storage space

- Offering personal services such as creating websites, making deliveries, assembling the furniture, etc.

> Personal services income (i.e., income that you received as a reward for your personal efforts)

> Rental income

<Income that is exempt>

> Some Australian Government pensions including:

- Disability support pension paid to an individual who is under the age-pension age

- Invalidity service pension paid to an individual who is under the age-pension age

> Some Australian Government payments/allowances:

- Carer allowance

- Child care subsidy

> Some overseas payment/allowances you may receive as Australian Defence Force or Federal Police personnel.

> Education payments paid by the Australian Government such as:

- Allowances for students who are under the age of 16

- Commonwealth secondary education assistance

> Some scholarships, bursaries, grants and awards you receive as part of your studies

> A lump sum payment which you received upon the surrender of an insurance policy whereby you are the original beneficial owner of the insurance policy. This may be due to the fact that this lump sum payment is not one that you would expect to receive on a regular basis. Examples may include:

- Mortgage protection

- Terminal illness

- A permanent injury due to work

> Rewards or gifts you receive on a special occasion (e.g., cash birthday presents, however gifts may also be taxable if you have received them as part of a business-related activity)

> Prizes you won in lotteries

> Prizes you won in game shows (except if you have received regular appearance fees)

> Child support and spouse maintenance payments

Well, that brings our discussion to an end but we certainly hope that this blog post will assist you in preparing for your next tax return. For the meantime, you are more than welcome to send through any queries you may have in regards to tax or super to our Facebook Page (P&C Tax Professionals – Australia) or to our email address at pnctax@naver.com.

Thank you and bye for now!