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Target foreign income

Last updated 31 May 2020

Things to know

Provided the amount hasn’t been included in your taxable income, or received in the form of a fringe benefit, target foreign income is any one of the following from sources outside of Australia:

  • income earned, derived or received
  • a periodical payment by way of gifts or allowances
  • a periodical benefit by way of gifts or allowances.

Types of target foreign income you need to show at this section include:

  • regular receipts of money and gifts from relatives living overseas which are exempt from Australian tax
  • income from foreign business interests and investments, which are exempt from Australian tax, including income received by migrants with business interests in their country of origin
  • foreign source income received while you were a temporary resident that is exempt from Australian tax
  • the amount of exempt foreign employment income you have shown in your tax return.

If you are not sure whether any foreign income you have received is target foreign income, phone 13 28 61.

Completing this section

You will need details of your target foreign income amounts.

If you have already entered exempt foreign employment income in the Foreign income, assets and entities section, that amount may be shown here. Otherwise, you will need to include it in the total target foreign income.

At Personalise return, you don't need to make a selection to show Income tests, as it's always displayed at Prepare return.

At Prepare return, select 'Add/Edit' at the Income tests banner.

At the Income tests heading:

  1. Enter the total amount of target foreign income you received during 2019–20.
  2. Select Save and continue when you have completed the Income tests section.

Note: Information shown in myTax may be updated based on you entering data in other sections. Before you lodge, you should review this information again to ensure it is correct.

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