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  • Australia-United States Joint Space and Defence Projects

    Find out how employment income you receive in connection with a joint space and defence project may qualify for special tax treatment. These projects are set out in section 23AA of the Income Tax Assessment Act 1936.

    If you receive income in connection with the following projects, you 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.
    • Force Posture Initiatives.

    Project 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:

    Foreign contractor income

    Income a foreign contractor derives 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 that doesn't 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: 18 Jun 2021QC 27144