It can be confusing sometimes not knowing what needs to be reported on your tax return! That's why we have put together the following list which will help you classify what is income:
Income you need to report includes:
Payments received electronically, in cash, or through coupon and voucher payments
Business investment income, including interest from all of your business bank accounts
Assessable government payments such as fuel tax credits
Capital gains made by your business.
Classifying your income:
Certain types of income are reported separately in your personal tax return. Money made through the sharing economy could be business or personal income. For example:
Ride-sourcing income is always business income such as Uber, Ola etc
Apps such as Air Taker were you've earned a fee for performing tasks such as cleaning, gardening etc is likely to be personal income.
If your business mainly gets paid for your personal efforts, skills or expertise, you may be earning personal services income (PSI), which is reported in your personal tax return.
Need help lodging your Tax Return? Give us a call today!