• Allowances and lump sum payments

    Some allowances and lump sum payments may be taxable, including living away from home allowance paid by your employer.

    Some allowances are subject to fringe benefits tax (FBT). Ask your Australian employer whether it applies to your allowance.

    If an allowance is:

    • subject to FBT: don’t include it in your assessable income
    • not subject to FBT: include it in your assessable income as foreign employment income, unless you earned the allowance from exempt foreign employment. If your salary is exempt foreign employment income, the allowance may also form part of the exempt foreign income.

    If you received a lump sum payment from a foreign resident superannuation fund, the payment may be taxable. If the payment is not taxable, it may still be taken into account to work out the amount of tax you have to pay on your other income.

    To check if your lump sum payment from a foreign super fund is taxable, call us on 13 10 20.

    Last modified: 30 May 2015QC 33212