Australia has exchange of information arrangements with treaty partners to ensure that everyone pays the correct amount of tax under the law.
The development of the global economy has been accompanied by improved cooperation between tax jurisdictions. This has led to more effective data sharing and analysis of information, which is matched against individual and business tax returns.
Australia has comprehensive tax treaties with more than 40 countries, which provide for the exchange of information about income earned overseas by Australian residents and Australian income earned by foreign residents. We undertake data-sharing exercises with countries that are treaty partners with Australia. The data received is matched with what is recorded on your tax return.
If you are an Australian resident, you need to declare your worldwide income on your tax return to avoid penalties for disclosing incorrect information. Foreign income includes all of the following items, even if you have paid withholding tax overseas, or have not brought the income into Australia:
- pensions
- employment income
- rent
- interest
- dividends
- business income
- capital gains.
If you are a foreign resident, you must declare your Australian-source income on your tax return to avoid penalties for disclosing incorrect information.
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For more information about declaring income:
Use our Determination of residency tool to work out if you are considered a resident for tax purposes.
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We encourage you to update your address details and tax file number with your financial institutions to avoid inconvenience.
More information
For more information, refer to:
The government is continually reviewing international tax arrangements. For information about how potential international legislative changes may affect you, refer to New legislation.
For help in applying this information to your own situation, phone us.
Last Modified: Tuesday, 24 July 2012