What do You Have to Declare?
When it's time to lodge your taxes, there are several categories you have to be aware of so you file your taxes correctly. If you start to file your taxes and you're just not sure, it's always a good idea to contact a professional like the staff at EtaxPlus. They'll walk you through the entire process and ensure you declare everything correctly.
Business, Partnership, and Trust Income :
If you're running a business, you have to declare any money you make from your business on your annual tax return, and you won't have to file a separate business form. If you're in a partnership, you and the other partners must declare their individual share of the net income or loss, whether or not they actually got money from it. A trust operates similarly. Any beneficiary has to claim their portion of the trust, whether or not they actually received the money.
Crowdfunding is becoming more popular, meaning you use a platform to get other people to donate to you, you may have to declare this income, depending on your role. There are three main roles in crowdfunding, and they are the initiator, or person who runs the crowdfunding campaign, the intermediary, or the individual or organisation who provides the platform, and the contributor, or individuals who donate to the campaign. As of now, the ATO is reviewing regulations on who has to claim what, and these will be updated soon.
Employment Income :
If you work and get salary or wages, you have to declare these. If you get bonuses, commission, money for casual or part-time work, dad and partner pay, parental leave pay, income protection policy, insurance policy, or a workers compensation claim. Also, if you get work allowances like travel pay, tips, consultation fees, or jury attendance fees, these have to be declared.
Foreign Income :
If your business is in Australia, but you get taxed on a global level, you have to declare this. This includes annuities, pensions, income from employment, capital gains, foreign income from business or investments. You should also be aware that you may get double taxed, once in Australia, and once in your foreign income's source country.
Investment Income :
If you're a resident of Australia and you earned income from interest, this must also declare these on your taxes. You must also declare any rental income, dividends, co-ownership of a rental property or business, and capital gains. If you have many different rental sources, this can get very confusing, and EtaxPlus can help you sort it out.
Other Income :
You have to declare any income you get from workman's compensation and insurance payments and employee share scheme. If you won a prize or lottery from a company that is run by a credit union, building society, or investment body, you have to declare this. However, if you win a lottery or prize from an ordinary raffle or lottery, you don't declare this. If the ATO imposed interest on your taxes, you also have to declare this.
Pensions, Supers, Government Payments, and Annuities:
Pensions that come from a super fund, Commonwealth fund, or death benefits have to be listed on your taxes. An annuity from a life insurance company must also be declared. Finally, if you get payments from disability, child disability allowance, carer adjustment payment, or Veterans Affairs allowance or disability pension, you must declare these as well. Once you realize how many different declarations you can make on your taxes, you may feel overwhelmed and not sure where to start. If this is the case, contact EtaxPlus, and let our professional staff walk you through your tax lodging process. Our staff will be happy to help you with any questions you may have this tax season.