All investment income earned by Australian residents must be declared in your annual tax return — regardless of whether tax was withheld at source. In 2026, the ATO's extensive data-matching programs mean failing to declare investment income is increasingly likely to be detected. Bank interest, dividends (including franking credits), capital gains, managed fund distributions, and rental income all have specific reporting requirements. Here is your complete guide.

What Investment Income Must You Declare?

  • Bank and savings account interest: All interest earned during the year, including from term deposits and offset accounts (though offset account interest reduces your loan balance rather than being paid to you)
  • Dividends: Cash dividends plus the value of dividend reinvestment plan (DRP) purchases — all form part of your assessable income
  • Franking credits: The tax credit attached to dividends from Australian companies — you must declare both the dividend and the franking credit, then claim the credit as an offset against your tax liability
  • Rental income: All rental receipts, including advance rent, bond forfeited for damages, and insurance payouts for lost rent
  • Capital gains: Gains on disposal of shares, investment properties, managed fund units, crypto, and other CGT assets
  • Managed fund distributions: Income, capital gains, and foreign income components of trust distributions
  • Foreign income: Interest, dividends, and gains from overseas investments — subject to Australian tax with a foreign income tax offset for tax paid overseas

How the ATO Knows About Your Investment Income

The ATO receives data from financial institutions, share registries, the Australian Securities Exchange (ASX), managed funds, Centrelink, and foreign tax authorities. Most pre-fill data for bank interest, dividends, and managed fund distributions is available in myTax from August each year. The ATO cross-matches this pre-fill data against your lodged return and will contact you if there are discrepancies.

Cryptocurrency and Digital Assets in 2026

Cryptocurrency is treated as property for CGT purposes in Australia. You must report:

  • Capital gains or losses from selling, trading, or exchanging crypto
  • Income from staking rewards (assessed at market value when received)
  • Income from DeFi protocols and yield farming
  • Crypto received as payment for goods or services (assessable as ordinary income)

The ATO receives data from Australian crypto exchanges and has issued data-matching requests to foreign exchanges. Undeclared crypto gains are an ATO compliance priority in 2026.

Frequently Asked Questions

Do I need to declare bank interest under $100?

Yes. There is no de minimis exemption for interest income in Australia — all interest received from bank accounts, term deposits, or other financial instruments must be declared, regardless of the amount. The ATO pre-fills this data in myTax from information provided by financial institutions.

What are franking credits and how do they affect my tax?

Franking credits (imputation credits) represent the corporate tax already paid on dividend income by the Australian company. You must declare the cash dividend plus the franking credit as income, then claim the franking credit as a tax offset. If the franking credit exceeds your tax liability, you receive a refund of the excess — this is one reason share investors sometimes receive unexpected tax refunds.

Do I pay tax on managed fund distributions?

Yes. Managed fund distributions include different components — income (interest, dividends), capital gains, and sometimes foreign income — each taxed differently. Your fund provides an annual tax statement showing the breakdown of the distribution, which your accountant uses to correctly report each component in your return.

Have investment income from shares, properties, or crypto? Contact AWTS to ensure everything is declared correctly and all eligible deductions are claimed.