Interest and Dividend Expenses

Claim a deduction.

Firstly, if you incurred expenses while earning income from interest or dividends, you may be able to claim those expenses as a deduction, including:

  • Account-keeping fees for accounts held for investment purposes
  • Management fees and fees for investment advice relating to changes in the mix of your investments
  • Interest charges on money borrowed to purchase shares

 

Additionally, you may be able to claim an assortment of other costs, provided they were incurred in managing your investments, including:

  • Travel expenses
  • Cost of specialist investment journals and subscriptions
  • Borrowing costs
  • Cost of internet access
  • A capital allowance for the decline in value of your computer

Do I have to declare dividends on my tax return?

Dividends

Yes, you must declare dividends you receive on your tax return. You should receive a dividend statement indicating a number of dividends paid to you and on what date.

 

What are dividends?

Dividends are payments or credits made by an Australian company that you own shares in. If you received Dividend payments from investments during the year you will receive a Dividend Statement. Please enter the information required as shown on each of these statements. Do not enter income from a trust or partnership distribution at this question.

 

You can receive dividends from a listed investment company, a public trading trust, a corporate unit trust, or a corporate limited partnership. Dividends may be in a payment in the form of money or property, including shares.

 

Dividends are subject to tax under an imputation system. This means that companies pay tax on their dividends and then pass franking credits on to their shareholders along with the dividends they receive. Therefore, if you receive dividends that have been franked, you may be able to receive a franking tax offset for the tax the company has already paid on those dividends.

 

Learn how to claim a tax deduction on interest and dividend income here.