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  • Foreign employment income and section 23AG – employees

    If you work overseas continuously for 91 days or more and earned foreign employment income, you need to consider the treatment of income tax and superannuation on your foreign income in Australia.

    In this information, 'foreign resident' is the same as 'non-resident'.

    In this section

    Exemption for Australian residents
    If you're an Australian resident, use these steps to work out if your foreign employment income is exempt from Australian tax

    Exempt income and other tax obligations
    Even if your foreign employment income is exempt from income tax, it can still affect other aspects of your tax

    Pay as you go and foreign employment income
    Factors to consider if you have exempt foreign income to make sure your rate or amount of pay as you go withholding meets your end-of-year tax liability

    Foreign income tax offset
    Avoid paying tax twice with the foreign income tax offset (FITO)

    Fringe benefits tax and foreign employment income
    You must include any reportable fringe benefits on your tax return and any fringe benefits may affect your eligibility to claim a foreign income tax offset

    Superannuation and foreign employment income
    Even if your income is exempt from tax in Australia, it can still affect your super guarantee, super co-contributions and deductions for personal super contributions

      Last modified: 01 Jul 2022QC 23115