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Part 2 – Resident of Timor-Leste

Last updated 25 June 2019

Use this part if you were a resident of Timor-Leste for tax purposes during 2018–19.

What you need

You will need details of your JPDA income from your income statements, PAYG payment summary – foreign employment or letter from your employer for 2018–19.

You need to know

A proportion of 10% of your income earned for work or services performed in the JPDA is taxed in Australia. Your payer should have deducted Australian tax at the minimum rate of 32.5% on 10% of your JPDA income.

When completing the following deductions for work-related expenses in myTax, show only 10% of your expenses relating to your work in the JPDA:

• Union or professional association fees in Foreign employment income (on an income statement/payment summary)
• Work-related car expenses
• Work-related travel expenses
• Work-related clothing, laundry and dry-cleaning expenses
• Work-related self-education expenses
• Other work-related expenses.

What you need to do

Before you start on Foreign employment income (on an income statement/payment summary) in myTax, complete worksheet 3.

Peter, a labourer, was a resident of Timor-Leste for the whole year. His PAYG payment summary – foreign employment shows a gross payment of \$200,000 and Australian PAYG tax withheld of \$6,500. His sole source of income was from the JPDA. Peter had work-related expenses of \$200.

Peter will claim \$20 (that is, 10% of \$200) as his work-related expenses at 'Other work-related expenses' in myTax.

Peter’s taxable income is \$19,980. His Australian tax payable is \$6,493.50. Therefore, he will receive a tax refund of \$6.50, that is, \$6,493.50 (tax payable) minus \$6,500 (tax withheld).

Peter uses worksheet 3.

Worksheet 3 – Peter

Row

Calculation elements

Amount

a

Amount shown on income statement/payment summary

\$200,000

b

Divide row a by 10.

\$20,000

End of example

Worksheet 3: Assessable JPDA income for resident of Timor-Leste

Use this worksheet to work out an assessable JPDA income for resident of Timor-Leste, for each of the following amounts shown on your income statement or PAYG payment summaryforeign income:

• Gross payments
• Lump sum A
• Lump sum E.
Worksheet 3

Row

Calculation elements

Amount

a

Amount shown on your income statement/payment summary

\$

b

Divide row a by 10.

\$

Enter the amount at row b at the relevant field in Foreign employment income (on an income statement/payment summary) in myTax:

• Gross payments
• Lump sum A
• Lump sum E.

Enter only 10% of any work-related expenses that relate to your JPDA income at the following sections:

• Union or professional association fees, in Foreign employment income (on an income statement/payment summary)
• Work-related car expenses
• Work-related travel expenses
• Work-related clothing, laundry and dry-cleaning expenses
• Work-related self-education expenses
• Other work-related expenses.

If the Residency status you selected is 'D - Changed residence during the year', go to Part 3 – Resident of another country. Otherwise, complete the sections in myTax as shown in the relevant parts. You have now completed these instructions.

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