Tax Exempt Foreign Employment Income
From 1 July 2008, foreign employment income that is exempt from tax will be included in the calculation of your adjusted taxable income for family assistance purposes.
Foreign income exempt from tax is already counted for family assistance purposes. However, foreign employment income exempt from tax that is counted for child support purposes may not currently be counted for family assistance purposes if the income is from a source in Australia. The change will ensure these amounts are also counted for family assistance.
tax exempt foreign employment income may include:
- income that is exempt under section 23 AF of the Income Tax Assessment Act 1936. This applies to Australian residents working overseas on approved foreign projects; and
- income that is exempt under section 23 AG of the Income Tax Assessment Act 1936. This applies to Australian residents who are engaged in foreign employment for at least 91 continuous days.
Exempt foreign employment income is included in a person's income tax return. You will need to take this amount into account when estimating your income for 2008-09 for family assistance purposes.
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