Australia - US teacher exchange programs

Introduction

Under some exchange programs between Australia and the United States (US), teachers from each country can work in the other but continue to be paid by their home country employer.

How do we tax your exchange program salary and wages?

Australian residents

From 1 July 2009 if you are an Australian resident in the US under a teacher exchange program, and you are in the US for:

• less than 184 days of the US tax year (1 January to 31 December) - your salary and wage income is taxable in Australia only.
• 184 days or more of the US tax year - your salary and wage income is taxable in Australia and may be taxed in the US. You may be entitled to claim a foreign income tax offset in respect of the tax you paid in the US.

United States of America residents

If you are a US resident in Australia under a teacher exchange program, the way you are taxed in Australia depends on how many days of the Australian income year (1 July to 30 June) you are in Australia for.

If you are in Australia for:

• less than 184 days of an Australian income year, your salary and wage income will not be taxed in Australia
• 184 days or more of an Australian income year, your salary and wage income will be taxed in Australia.

What to do next?

If you are unsure of your situation, phone us on 13 28 61.