• Calculating the offset

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    You claim the foreign income tax offset in your income tax return.

    If claiming an offset of $1,000 or less, you only need to record the actual amount of foreign income tax paid on your assessable income (up to $1,000).

    If claiming a foreign income tax offset of more than $1,000, you will first need to work out your foreign income tax offset limit.

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    Before you calculate your net income, you must convert all foreign income deductions and foreign tax paid to Australian dollars, refer to Converting foreign income to Australian dollars.

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    All types of income are treated the same for the purposes of working out the foreign income tax offset.

      Last modified: 04 May 2012QC 28013