Those who have had an ING Direct account with 2% cashback (or similar) might be able to answer this.
With regards to Tax Returns, does this need to be declared? If so, how?
Query Re: ING Direct Rebates & Declaring Interest for Tax Return
nakahanap on 10/07/2015 - 20:38
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Interests on bank accounts in general yes, however ING Direct OE account pays -0.00% interest so how did you earn any interest?. Cashback is just cashback, do you ever declare any cashbacks when purchasing things such as white goods or computer gears etc. as income?
It should be declared as other income. Should be…
IIRC ING rebates are not interest income but I forgot where I found this out. Have you tried looking at the ING T&C? Or ask them? But the Citibank rebate is interest as they say so.
rebate is not earned income, its a discount passed on after you have paid. no diff to an atm rebate, a medicare rebate , a work expense rebate and so on. you have already paid tax on the money you used to get the rebate
i think if you declared it your accountant would laugh….
i might be wrong, but i eouldnt declare it
and for the record, ing dont expose these tebate amounts to the ato, so clearly its not treated as earned income
i'm not a tax expert. i don't think the cashback needs to be declared.
the only caveat is you should take into account the cashback when claiming for tax deductions (net price after cashback)
To be eligible for the cashback you must spend. For a $100 item/transaction, the ATO wouldn't want to allow you to claim a $100 expense deduction for that $2 cashback, so the ATO wouldn't even want to treat it as income.
imagine that, a $49 deduction for every $1 of rebate income declared.
lol…