Gross Interest – What to Declare and How to Do It Right

What Is Gross Interest?

Gross interest is the total amount of interest you earn before any tax is taken out. It includes income from your:

• Bank savings accounts

• Term deposits

• Credit unions or building societies

• Bonds and debentures

• Some peer-to-peer lending platforms

If you see "interest earned" on a bank statement — that’s what we’re talking about.

What Do You Need to Declare?

• All interest you receive — Even if it’s a few bucks or if you didn’t actually withdraw it.

• Joint accounts — Declare your share based on how much of the account you own.

• Children’s accounts — If you use your child’s account as your own, you declare the interest.

Where to Declare It

Gotax Prefills this for you – Gross Interest.  But you still need to check it.
Put the total interest you earned during the year here. The ATO already gets this data from your bank, so don’t leave it out — they’ll know.

What About Tax Withheld?

• No TFN? If you didn’t give your bank your Tax File Number, they’ll withhold tax at the highest rate. You can claim this back in your return.

• Foreign resident? If you became a non-resident during the year:

  • Declare interest earned before you left Australia.

  • Don’t declare interest earned as a non-resident if withholding tax was taken.

  • If no withholding tax was taken after becoming a non-resident — attach a schedule. The ATO will calculate the tax.

What Records Should You Keep?

• Bank and investment statements showing interest earned

• Any records of tax withheld

• Joint account records (how interest is split)

Hold onto them for at least five years.

Derek’s FAQ – Real Questions, Real Fast

Q: I only earned $3 interest. Do I have to declare it?
A: Yes. All interest, no matter how small, must be declared.

Q: My account is joint with my partner. Who declares the interest?
A: You both declare your share — usually 50/50 unless it’s otherwise owned.

Q: I didn’t give my bank my TFN. What now?
A: The bank will withhold tax. Declare the full interest and the amount withheld — you might get some back.

Q: I became a non-resident this year. Do I declare all my interest?
A: Only the interest earned before you became a non-resident — and only if tax wasn’t withheld.

Q: I use my child’s bank account for saving. Who declares the interest?
A: You do. If it’s effectively your account, the interest is yours to declare.

Q: I reinvested the interest — didn’t withdraw it. Still taxable?
A: Yes. Interest is taxable when credited to your account, not when you take it out.

Bottom line:
If you’ve earned interest, the ATO wants a look. Declare it all, keep your records straight, and don’t assume they won’t notice — the banks report it anyway. Got questions? Just ask Derek below.

Let GoTax Handle It For You

GoTax Online makes declaring interest easy. We link to ATO systems, grab your interest data from banks, and plug the numbers in automatically.

• No confusion.
• No missing info.
• No guesswork.

Start your return now: www.gotax.com.au/guest-user

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