Interest & Dividend Statements

Interest earned are payments made to you by a financial institution such as a bank that you have an account or deposit with.

Interest paid by a partnership or trust is excluded. Dividends are payments or credits from 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.

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 interest on my tax return?

Interest

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.