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  • Australia/United States Joint Space and Defence Projects

    Under section 23AA of the Income Tax Assessment Act 1936, income connected with the following projects may qualify for special tax treatment:

    • North West Cape Naval Communication Station (Exmouth, Western Australia)
    • Joint Defence Space Research Facility (Pine Gap, Northern Territory)
    • Sparta Project
    • Joint Defence Space Communications Station (Nurrungar, South Australia)
    • Force Posture Initiatives.

    Employment income

    Under some circumstances, employment income for services at these facilities is exempt from Australian income tax if the same income is subject to tax in the United States. You will need to give us evidence such as a closing agreement with the US Internal Revenue Service.

    See also:

    Income of a foreign contractor

    Income derived by a foreign contractor from the performance of services at these facilities may be exempt if the income is not exempt in the US.

    However, if the foreign contractor is a US entity which itself does not pay tax (such as a Limited Liability Company), the US tax treatment of the entity and of its members will be considered to work out if the exemption applies.

    This tax treatment doesn't apply to Australian citizens or residents of Australia for tax purposes.

    See also:

      Last modified: 27 Jun 2019QC 27144