How is interest income taxed?
Learn how the ATO treats interest income and why investors generally need to declare it in their tax return.
Summary
Interest income is generally income that needs to be declared in an individual tax return. The ATO explains that interest from bank accounts, term deposits, and similar investments may need to be reported.
What this means
Interest income may appear in ATO pre-fill information, but investors should still check the details are complete and correct.
Joint accounts and overseas interest can require extra care.
Typical actions
- Collect interest statements from banks or financial institutions.
- Check ATO pre-fill information against your own records.
- Declare all relevant interest income.
- Keep records for interest earned, including foreign interest where relevant.
Official ATO sources
Last checked: 20 June 2026
Interest income
Explains interest income and declaring it in a tax return.
Investment income
ATO hub for investment income.
Foreign income
Explains foreign and worldwide income issues.
Related questions
- How are dividends and franking credits taxed?
- What records should investors keep?
- What is capital gains tax?
- What income do I need to declare?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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