Foreign income

If you're an Australian resident for tax purposes, you generally must include income from all sources in your assessable income – whether you earned the income in Australia or overseas.

Report all assessable foreign income

You generally must report your assessable foreign income, even if you were already taxed in the country where you earned it.

In some cases, foreign income that is exempt from tax in Australia may still be used to work out the amount of tax you have to pay on your other income.

Convert amounts into Australian dollars

You must convert your foreign income and deductions into Australian dollars.

Generally, the deductions you claim must be converted at the exchange rate that applies when you incur or pay the expenses, whichever occurs first. Generally, income must be converted at the exchange rate that applied when you earned or received the income, whichever occurs first.

Alternatively, you can use an average exchange rate to convert your income and deductions into Australian dollars if that rate is reasonably similar to the rate you would have had to use.

Foreign income tax offset

You may be eligible for a foreign income tax offset in your income tax assessment for any taxes you paid in another country on income you earned there.

See also:

Last modified: 13 Mar 2015QC 44455