What is Australian official development assistance?

Australian official development assistance (ODA) is delivered through the Australian Government's overseas aid program, which is administered by the Department of Foreign Affairs and Trade (DFAT).

Example 1

Michelle is employed by DFAT. On 1 April 2016, she is posted to the Solomon Islands, for 190 continuous days, as a project advisor on an Australian ODA project aimed at improving the quality of early childhood education. Michelle's foreign service is directly attributable to the delivery of Australian ODA by her employer.

Michelle's foreign earnings before 1 July 2016 are eligible for exemption from tax in Australia. However, as an Australian Government employee delivering ODA, from 1 July 2016, her foreign earnings will not be eligible to be exempt from Australian income tax.

Michelle's foreign income from her service for the period 1 July 2016 to 7 October 2016 will be taxed in Australia and she may be entitled to claim a foreign income tax offset in respect of any foreign tax paid on that income.

End of example


Example 2

Eric is a motor mechanic employed by Nordic Engineering Pty Ltd, a private company contracted by DFAT to provide vocational training in Vanuatu. Eric is employed to teach young people motor mechanic skills. He is posted to Vanuatu for 180 continuous days.

Eric's foreign service is directly attributable to the delivery of Australian ODA by his employer. Therefore, he is eligible for exemption from Australian income tax on his foreign earnings.

End of example
    Last modified: 01 Dec 2015QC 22115