discobay

Do we need to declare the interest we receive from UBank if we have already supplied our TFN?

fish.01

Yes. Supplying the TFN just stops UBank having to withhold tax for the ATO at the withholding rate. If you supply the TFN they should withhold no tax on your interest at all. It is up to you to keep a portion of the interest to pay the tax bill at the end of the year.

Regardless of whether they withhold tax or not you declare all interest on your tax return (as you suspect supplying your TFN means the tax dept knows what interest you received so don't lie), work out how much tax is due at your marginal tax rate and then balance that against any tax withheld and therefore already paid (should be none withheld/paid in your case).

discobay

So the total interest earned from UBank is regarded as gross interest right?

fish.01

yes, gross because it is the before tax deducted figure.

discobay

Thanks.

roaringmouse

If you use the ATOs software etax, it will likely download that information if you select that option - although if it's your first tax return then it possibly wouldn't if it can't identify you, so something for the future!