As the end of the financial year (EOFY) approaches in Australia, it’s essential to ensure all income is accurately reported. Doing so not only ensures compliance with the Australian Taxation Office (ATO) but also sets the foundation for maximising your tax refund. Whether you’re an employee, sole trader, investor, or small business owner, following a clear process for income reporting can help you avoid costly errors, audits, and penalties.

This EOFY checklist offers a comprehensive framework to help you gather, organise, and report your income, giving you confidence that nothing has been missed.

What You Need to Report for EOFY

The ATO requires individuals and businesses to report all assessable income. This extends beyond wages and includes everything from side hustles to crypto gains and international royalties. Below is a detailed guide broken down by income type.

1. Employment Income

For most Australians, employment income is the primary source of assessable income. The ATO uses data-matching technology via Single Touch Payroll (STP) to track your salary, super, and PAYG tax withholdings in real time.

What to Collect:

• Income Statement via myGov
  Your employer must finalise your Income Statement (formerly called a PAYG Summary) via STP by 14 July. This is automatically available through your myGov account and should match your internal payslip records.

• Payslips and Payment Summaries
  It’s wise to cross-check your payslips against your final Income Statement to ensure accuracy. Bonuses paid late in the financial year are sometimes missed.

• Bonuses, Overtime, and Allowances
  Report all forms of compensation, including commissions, allowances for tools or travel, and overtime. These should be included in your Income Statement, but if you’ve received ad hoc payments, double-check they were reported correctly.

• Fringe Benefits
  Non-cash perks like private use of a work vehicle, entertainment expenses, or health memberships may result in a Reportable Fringe Benefits Amount (RFBA). These appear on your Income Statement and may affect eligibility for certain government benefits or thresholds (like HELP repayment).

2. Sole Trader and Business Income

For sole traders and small businesses, including those offering services via platforms like Uber, Airtasker, or Etsy, it’s critical to ensure all income is captured, especially cash or untracked payments.

What to Include:

• Profit and Loss Statement
  A well-maintained P&L should reflect total income and deductible business expenses. Compare this against bank statements and invoicing software to confirm accuracy.

• Cash and Third-Party Payments
  Any income received in cash or via platforms like PayPal, Square, or Stripe must be declared. The ATO has ramped up scrutiny of these payment systems and often receives direct data feeds from them.

• Business Bank Statements
  Use your business account as your source of truth. Ensure all income deposits are traceable to invoices or sales.

• GST and BAS Alignment
  If you are GST-registered, your total income figures in the tax return should align with those reported in your quarterly or annual BAS statements.

• Grants or COVID-19 Support Payments
  If you received state or federal business support (e.g. JobKeeper, Business Hardship Grants), some of these may be taxable and must be reported as income.

3. Investment and Rental Property Income

Investment income spans a range of assets—interest, dividends, managed funds, shares, and property, each with their own reporting rules.

Interest and Dividends

• Request annual interest summaries from banks and credit unions.

• Include dividend statements from Australian and international shares. Don’t forget to report any franking credits.

• Review ETF or managed fund statements to capture reinvested distributions and tax-deferred amounts.

Capital Gains and Losses

• If you’ve sold shares, crypto, real estate, or other investments, you must calculate and report capital gains or losses.

• Apply the 50% CGT discount for assets held over 12 months (if eligible).

• Offset gains with available capital losses, including those carried forward from previous years.

Rental Property Income

• Gather annual rental statements from your property manager.

• Include income from all sources, long-term leases, short stays (e.g. Airbnb), and tenant reimbursements.

• Include allowable deductions such as:

  • Interest on investment loans

  • Depreciation (via a tax depreciation schedule)

  • Repairs, council rates, water, insurance, and agent fees

  • Travel expenses (note: since 2017, individual landlords can’t claim travel to inspect or maintain properties)

4. Government Payments and Superannuation

Government assistance and super contributions can also impact your tax return.

Centrelink or Services Australia Payments

• Include any JobSeeker, Age Pension, or Youth Allowance received.

• Income statements are accessible via myGov. These are pre-filled but must be verified.

Superannuation Contributions

• Check employer contributions via your annual super fund statement.

• If you made personal super contributions and wish to claim a deduction, ensure you’ve lodged a Notice of Intent to Claim with your fund before lodging your return.

• Consider any concessional contribution caps ($27,500 for 2023–24) to avoid excess contribution tax.

5. Other Income Types

The ATO increasingly targets alternative income streams.

Foreign Income

• Report all overseas income including pensions, investments, or foreign business income. This applies even if the income remains in an overseas bank account.

Royalties and Intellectual Property

• If you earn money from publishing books, licensing software, or digital assets (e.g., NFTs), this is taxable and must be reported in full.

Cryptocurrency

• The ATO treats crypto as property, not currency. You must report:

  • Capital gains/losses on each transaction

  • Crypto earned via mining or staking (treated as income)

  • Swaps between coins or crypto used to buy goods/services

Failure to declare crypto transactions, particularly when using Australian exchanges, can trigger ATO scrutiny, as they receive data from most exchanges directly.

Common EOFY Income Reporting Mistakes to Avoid

Avoiding the following mistakes can save time, money, and potential ATO penalties:

1. Omitting Income
   The ATO has data matching for wages, bank interest, dividends, crypto, and even foreign income in some cases.

2. Mismatched Bank Deposits
   If your income doesn’t reconcile with your bank statements (especially for sole traders), the ATO may issue a discrepancy notice.

3. Double-Counting Pre-Filled Items
   If using ATO pre-fill, don’t also manually enter the same income, it leads to double reporting.

4. Ignoring Reportable Fringe Benefits
   While not taxable themselves, they may impact your entitlements or repayment thresholds.

5. Missing Out on Deductions
   While not part of income reporting, your deductions can significantly affect your tax payable. Ensure you have receipts or records for any work-related or business expenses.

Final Steps Before You Lodge

✅ Review Records Thoroughly

Ensure all income sources are accounted for. Cross-check your records with your bank, super fund, and payment summaries.

✅ Use ATO Pre-Fill as a Starting Point

Pre-fill saves time but isn’t always accurate or complete, especially with new jobs, investments, or side income.

✅ Seek Professional Support

If you’re unsure about how to report certain types of income, especially capital gains, crypto, or foreign income, it’s worth engaging a registered tax agent like Tax Window. Mistakes in these areas can be costly.

Conclusion: Accurate Income Reporting = A Smoother Tax Season

Reporting your income accurately is the foundation of a well-prepared tax return. With more data matching and compliance tools than ever, the ATO is tightening its grip on undeclared income. By following this guide and maintaining thorough records, you can reduce stress, avoid audits, and maximise your refund.

Whether you’re an individual with simple wage income or a business owner managing multiple revenue streams, EOFY is the time to get organised. If you’d like peace of mind and proactive support, our team at Tax Window can help ensure your return is accurate, complete, and strategic.