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Part 3 – Resident of another country

Last updated 27 June 2018

Use this part if you were a resident of a country other than Australia or Timor-Leste for tax purposes during 2017–18.

What you need

You will need details of your JPDA income from your PAYG payment summary – foreign employment for 2017–18, or a letter from your employer.

You need to know

Your net income earned in the JPDA is taxed in Australia. You can claim a tax offset of 90% of Australian tax payable on that income. Your payer should have withheld 10% of the applicable Australian tax on your JPDA income.

What you need to do

Show all your Australian income (including all JPDA income) and deductions as instructed by myTax. Use worksheet 4 or worksheet 5 to work out your other non-refundable tax offset.

Use worksheet 4 if the only Australian income you had was JPDA income; otherwise, use worksheet 5. If you are using worksheet 5, example 3 will assist you.

Worksheet 4: JPDA tax offset for foreign residents whose only Australian income is JPDA income

Worksheet 4

Row

Calculation elements

Amount

a

Your taxable income as shown in myTax 

$          

b

Calculate your tax using the rates and calculators

$

c

Multiply row b by 90

$

d

Divide row c by 100

$

The amount at row d is your JPDA tax offset. Enter this amount at 'Other non-refundable tax offset' in Foreign employment income (on a payment summary) in myTax.

Example 3

Gavin, a chef, was a resident of Malaysia for the whole year. His Australian assessable income was $80,000, of which $70,000 was JPDA income. He paid $100 for work-related expenses related to earning his JPDA income but had no other allowable deductions. He had no other amount to show at Other non-refundable tax offsets. Gavin uses worksheet 5 below to work out his JPDA tax offset.

Worksheet 5 – Gavin

Row

Calculation elements

Amount

a

Your taxable income as shown in myTax 

$79,900

b

Calculate your tax using the rates and calculators

$25,967.50

c

Divide row b by row a (round to 3 decimal places)

0.325

d

Net JPDA income (after any allowable deductions relating to JPDA income)

$69,900

e

Multiply row c by row d

$22,717.50

f

Multiply row e by 90

$2,044,575.00

g

Divide row f by 100

$20,445.75

Gavin’s JPDA tax offset is $20,445. He enters this amount at 'Other non-refundable tax offset' in Foreign employment income (on a payment summary) in myTax.

End of example

Worksheet 5: JPDA tax offset for foreign residents who have JPDA income and other Australian income

Worksheet 5

Row

Calculation elements

Amount

a

Your taxable income as shown in myTax 

$           

b

Calculate your tax using the rates and calculators

$

c

Divide row b by row a (round to 3 decimal places)

 

d

Net JPDA income (after any allowable deductions relating to JPDA income)

$

e

Multiply row c by row d

$

f

Multiply row e by 90

$

g

Divide row f by 100

$

The amount at row g is your JPDA offset. Enter this amount at 'Other non-refundable tax offset' in Foreign employment income (on a payment summary) in myTax.

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