Investing cash?

[Rambunctious]

Originally Posted by Rambunctious

Yes, same as any other income from employment, the income from the deposit is added to your taxable income for the year in which it is paid.
If for example you placed $100,000 in a term deposit today for 12 months with the interest being paid on maturity, then the interest would be paid to you in September next year(2013) so it would be added to your income for 1st July 2012-30 th June 2013 year tax return.
However if you only put it in for 6 months then it would be added to this years (2011-2012) return.
These are the tax rates so add the interest to your taxable income and do the calculations.
http://www.ato.gov.au/individuals/co...tent/12333.htm
Then add the 1.5% medicare levy onto your tax payable.

Correction,

If for example you placed $100000 in a term deposit today for 12 months with the interest being paid on maturity, then the interest would be paid to you in September next year (2012) not as above (2013) Sorry for that.