Firstly, you must declare the interest you receive or any credit from a source within Australia. For instance, this includes interest earned from financial institution accounts, term deposits, and interest that the ATO pays or credits to you.
Additionally, you must also declare interest from a child’s account on your return. This applies if the funds in that account belonged to you or you spent the funds as if they belonged to you.
What if I’m a foreign resident?
If you are a foreign resident, you do not need to declare interest on your tax return. When you cease to be an Australian resident, all Australian-sourced income is subject to the withholding tax provisions as a final tax. This includes interest, dividends, and royalties.
Learn more about what income you must declare on our tax blog.