This can be a tricky question for many individuals, sometimes it can be such a chore to remember all of the odd jobs you have done along the way. It is important for this reason that you keep track of all earnings. While having a tax agent lodge your tax return is a helpful reminder, the responsibility of tracking your earnings is an ongoing one and can be particularly difficult for sole traders or individuals who work for multiple employers throughout a financial year. There are more and more ways to earn money these days with a share economy on the rise. Personal assets are now being utilised through the provision of services such as Uber and Airbnb. And what about your average garage sale? Can reselling old clothes and books really be classed as income? Well, the short answer is no.
This article aims at giving a clear overview of what earnings must be declared.
Employment Income
- commissions
- bonuses
- parental leave pay
- workers compensation
- insurance policies
- allowances (unless not shown in payment summary, doesn’t exceed allowance limits outlined by ATO, all allowance was spent on deductible expenses)
- tips
Sharing Economy
- personal assets for services
- Airbnb 14 nights/yr must be reported (quarterly reporting is mandated in some cases)
- odd jobs
Lump Sum Payments
- annual and long service leave
- FBT & RESC
Other income
- Foreign
- Shares
- Interest
- Family (unless in the form of a gift)
The ATO will consider the regularity and variability of payments received when accessing income received.
Contact Solve Accountants located on the Gold Coast, Qld Australia if you need help with your business tax.
