Things you need to know
Target foreign income is:
- any income you earned, derived or received from sources outside Australia
- a periodical payment by way of gifts or allowances from a source outside Australia
- a periodical benefit by way of gifts or allowances from a source outside Australia.
An amount isn't target foreign income if you reported it in your taxable income or received it in the form of a fringe benefit.
Types of target foreign income you need to show at this question 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 you received while you were a temporary resident that is exempt from Australian tax
- the amount of exempt foreign employment income you have shown at question 20 – label N.
Don’t include any other foreign income amounts that you show elsewhere in your tax return.
If you're not sure whether any foreign income you receive is target foreign income, contact us.
Did you receive any target foreign income?
- No – Write 0 (zero) at question IT4 – label V, then go to question IT5 Net financial investment loss 2026.
- Yes – Read on.
What you need to answer this question
You'll need details of any target foreign income that you received in 2025–26, including the details of any exempt foreign employment income you included at question 20 – label N.
Completing your tax return
To complete this question, follow the steps below.
Show all foreign income in Australian dollars using the market exchange rate for 1 July 2025.
For information on how to convert your foreign income, see Foreign exchange rates or Foreign income conversion calculator.
Step 1
Add up all the target foreign income you earned, derived or received during 2025–26, including the amount you have shown at question 20 – label N.
Step 2
Write the total at question IT4 – label V.
Where to go next
- Go to question IT5 Net financial investment loss 2026.
- Return to main menu Individual tax return instructions 2026.
- Go back to question IT3 Tax-free government pensions or benefits 2026.