Who is entitled to an exemption?
Employees are only eligible for the foreign employment exemption if they are an Australian resident individual who earns foreign employment income from continuous foreign service of 91 days or more, and their employment must be directly attributed to:
- your delivery of Australian official development assistance
- your activities in operating a public fund declared by the Treasurer to be a developing country relief fund; or a public fund established and maintained to provide monetary relief to people in a developed foreign country that has experienced a recognised disaster
- your activities as a prescribed charitable or religious institution that is exempt from Australian income tax because the prescribed institution is located outside Australia or pursues its objectives outside Australia
- their deployment outside Australia as a member of a disciplined force (if you are part of the Australian Government or an authority of the Australian Government).
From 1 July 2016, Australian Government employees who earn foreign income while delivering Australian official development assistance (ODA) will not be eligible for exemption from Australian income tax on their foreign employment income.
Members of a disciplined force, such as Australian Defence Force (ADF) and Australian Federal Police (AFP), delivering ODA will still be eligible for exemption from Australian income tax on their foreign employment income.