Foreign employment income

What is foreign employment income?

Foreign employment income is income you derive as an Australian resident working overseas as an employee. Foreign earnings include the following, which can be paid by an overseas or Australian employer:

• salary
• wages
• commissions
• bonuses
• allowances.

Australian residents are generally taxed on their worldwide income, whereas foreign residents are generally only taxed on their Australian-sourced income.

To understand your tax situation, you must first work out if you are an Australian resident for tax purposes.

For more information, refer to: Working overseas - what you need to know Foreign income of Australian residents - what you need to know Foreign income while working on an approved overseas project Exempt foreign employment income - how it affects your tax.