Income to Declare on Tax Return? 2025–26 Guide

Updated for the 2025–26 income year (tax returns lodged from 1 July 2026), with 2026–27 changes noted. Reviewed 19 October 2026.

One of the most important parts of your tax return is declaring all your assessable income and tax withheld. The ATO pre-fills a lot of information from employers, banks, share registries, government agencies and online platforms, so missing income is likely to be picked up – often with penalties and interest.

1. Employment income

• salary and wages, including commissions, bonuses, cash-in-hand pay, tips and gratuities
• allowances shown on your income statement (car, travel, tool, laundry, overtime meal, etc.)
• lump sum payments (for example, unused annual or long service leave, or back pay)
• employment termination payments
• reportable fringe benefits and reportable employer super contributions (these don't add to taxable income but are used in income tests)
• parental leave pay and income protection payments that replace wages

2. Super pensions, annuities and government payments

Declare super income streams (taxed and untaxed elements), annuities, and taxable government payments such as the Age Pension, Carer Payment, JobSeeker Payment, Austudy and Youth Allowance. Some payments are exempt from tax but still need to be considered, such as the Disability Support Pension paid to someone under Age Pension age, Carer Allowance and certain Veterans' Affairs disability pensions.

3. Investment income

• Interest – bank accounts, term deposits, and foreign interest
• Dividends and franking credits – see investment deductions
• Rent – the full amount of rent and rent-related payments (including insurance payouts for lost rent and bond money retained) – see rental property deductions
• Managed fund and trust distributions
• Capital gains on shares, property, crypto-assets and other assets

4. Business, partnership and trust income

If you run a business as a sole trader, declare your business income and expenses in your own return using the business schedule. A partnership lodges its own return, and each partner declares their share of the net income or loss. Trust beneficiaries generally declare their share of trust net income, even if not paid out (an exception applies where family trust distribution tax has been paid). Not sure if your activity is a hobby or a business? Use the hobby or business tool on business.gov.au or ask us.

5. Sharing economy and online platforms

Income from ride-sourcing, food delivery, short-term rentals, renting out a car park or equipment, and task-based work is assessable. Platforms report transactions to the ATO under the Sharing Economy Reporting Regime: ride-sourcing and short-term accommodation since 1 July 2023, and other transactions (such as asset hire and services) since 1 July 2024. Ride-sourcing drivers must also be registered for GST from their first trip – see our rideshare and delivery drivers guide.

6. Foreign income

Australian residents for tax purposes are taxed on worldwide income, including foreign employment income, pensions, business and investment income and capital gains on overseas assets. You may be entitled to a foreign income tax offset for tax paid overseas. Non-residents generally only declare Australian-sourced income.

7. Crowdfunding

Whether crowdfunding is taxable depends on the type (donation, reward, equity or debt-based) and your circumstances – for example, money raised in the course of a business is usually assessable.

8. Other income

Includes compensation and insurance payments for lost salary or wages, discounts on employee share scheme interests, some prizes and awards connected with your work, and certain bonuses from life insurance.

9. 2025–26 tax rates and due dates

Resident tax rates for 2025–26: nil to $18,200; 16% to $45,000; 30% to $135,000; 37% to $190,000; 45% above, plus the 2% Medicare levy. From 1 July 2026 the 16% rate drops to 15%. If you lodge yourself, your 2025–26 return is due by 31 October 2026. If you engage a registered tax agent before that date, you may have until later under the agent's lodgment program.