A New Tax System (Family Assistance) Act 1999
SchedulesSchedule 3 - Adjusted taxable income
Note: See section 3 .
An individual ' s target foreign income for an income year is:
(a) the amount of the individual ' s foreign income (as defined in section 10A of the Social Security Act 1991 ) for the income year that is neither:
(i) taxable income; nor
(ii) received in the form of a fringe benefit (as defined in the Fringe Benefits Tax Assessment Act 1986 , as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 ) in relation to the individual as an employee (as defined in the Fringe Benefits Tax Assessment Act 1986 ) and a year of tax; and
(b) any amount of income that is not covered by paragraph (a) that is exempt from tax under section 23AF or 23AG of the Income Tax Assessment Act 1936 , reduced (but not below nil) by the total amount of losses and outgoings (except capital losses and outgoings) incurred by the individual in deriving that exempt income. (2)
If it is necessary, for the purposes of this Act, to work out an amount of foreign income expressed in a foreign currency received in an income year, the amount in Australian currency is to be worked out using the market exchange rate for 1 July in that income year. (3)
If there is no market exchange rate for 1 July in the income year (for example, because of a national public holiday), the market exchange rate to be used is the market exchange rate that applied on the last working day immediately before that 1 July. (4)
For the purposes of this clause, the appropriate market exchange rate on a particular day for a foreign currency is:
(a) if there is an on-demand airmail buying rate for the currency available at the Commonwealth Bank of Australia at the start of business in Sydney on that day and the Secretary determines that it is appropriate to use that rate - that rate; or
(b) in any other case:
(i) if there is another rate of exchange for the currency, or there are other rates of exchange for the currency, available at the Commonwealth Bank of Australia at the start of business in Sydney on that day and the Secretary determines that it is appropriate to use the other rate or one of the other rates - the rate so determined; or
(ii) otherwise - a rate of exchange for the currency available from another source at the start of business in Sydney on that day that the Secretary determines it is appropriate to use.