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Tax on bank interest income

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I have recieved interest income from a Bank savings account. When I enter this into myTax my tax return drops by 45% of the value of the interest income. 45% is well above my current marginal tax rate. I had provided my TFN to the Bank, so there was no tax withheld.

 

Is interest income taxed at 45% regardless of other income? Or is the myTax calculation mistaken?

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ATO Certified

Community Support

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Hi @AlesaDavin,

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes and you've had interest credited to you from any source in Australia, you need to declare this income in your tax return. The interest amount will be added to your taxable income and tax will be calculated based on the tax rates.

 

As we can provide you with general information here on our Community, we don't know enough details about your situation to provide a definite answer. When you're completing your return in myTax, you can click the 'Live chat' function on the right-hand side of your screen. This will connect you with an ATO officer where you can share your screen and they can assist you with lodging your return.

 

Thanks, JodieH.

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Taxicorn

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Interest is just income and is added to your taxable income.

It is then taxed accordingly.

 

There has to be some mistake somewhere.

Best answer

ATO Certified

Community Support

Replies 0

Hi @AlesaDavin,

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes and you've had interest credited to you from any source in Australia, you need to declare this income in your tax return. The interest amount will be added to your taxable income and tax will be calculated based on the tax rates.

 

As we can provide you with general information here on our Community, we don't know enough details about your situation to provide a definite answer. When you're completing your return in myTax, you can click the 'Live chat' function on the right-hand side of your screen. This will connect you with an ATO officer where you can share your screen and they can assist you with lodging your return.

 

Thanks, JodieH.

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