I and my wife are the holders of the Business Innovation and Investment (Provisional) visa (subclass 188) Investor Stream. We jointly invested in the NSW Waratah Bonds issued by TCorp in 2022 per the visa requirement. We received the first bonds interest in Jan this year. My wife has been living in NSW and has a job. I have not yet lived in NSW. As far as I can find out using the ATO “Are you a resident?” tool, my wife is a temporary resident and I am a foreign resident for tax purposes.
From this ATO web page (https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/Foreign-and-temporary-residents/), it states a foreign resident does not need to declare Australian-sourced interest, dividends or royalties, provided the Australian financial institution or company that pays you has already withheld tax. From the bond interest statement I received from TCorp, it does not show any amount of interest being withheld for the tax. In this case, do my wife (temporary resident) and I (foreign resident) need to include the bond interest in the tax return? Assume the interest is AUD 1,000, is it correct that my wife and I need to report AUD 5,000 separately as the interest income, i.e. splitting the total interest into two halves?
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