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  • 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.

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    Medicare levy and surcharge

    Your exempt foreign employment income is included in the calculation of your liability for Medicare levy and Medicare levy surcharge.

    Your total reportable fringe benefits amount and reportable employer superannuation contribution amount are also added to your taxable income to work out your liability for the Medicare levy surcharge.

    Income tests

    We take your exempt foreign employment income into account when we work out your adjusted taxable income (ATI). This is one of the income tests that apply from 1 July 2009. We use your ATI to determine if you are eligible for some tax offsets.

    Student loan repayments

    We include your exempt foreign employment income when we work out your repayment income as part of working out your study and training support loans for the year.

    Employee share scheme benefits

    A benefit you receive under an employee share scheme (ESS) forms part of your foreign employment income. If your foreign employment income is tax exempt, the benefit is also exempt. If your foreign employment income is not eligible for the exemption, the benefit you receive under an ESS will not be exempt.

      Last modified: 01 Jul 2022QC 23115