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Edited version of your written advice
Authorisation Number: 1013001395890
Date of advice: 27 April 2016
Ruling
Subject: Foreign income
Question and Answer
Is your income from working with the Government agency, exempt overseas employment income?
No
This ruling applies for the following period(s)
Year ended 30 June 2017
The scheme commences on
1 July 2016
Relevant facts and circumstances
You are an Australian resident
You will be performing Foreign Service for more than 91 days
You are on a register
The register is maintained by the Government Department.
As an individual on the register, you agreed to a position which was created for, Foreign Service.
Relevant legislative provisions
Section 23AG of the Income Tax Assessment Act 1936
Section 995-1 of the Income Tax Assessment Act 1997
Reasons for decision
From 1 July 2009. Subsection 23AG(1AA) of the ITAA 1936 provides that those foreign earnings will not be exempt under section 23AG of the ITAA 1936 unless the continuous period of foreign service is directly attributable to any of the following:
(a) the delivery of Australian official development assistance by the taxpayer's employer; except if that employer is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
(b) the activities of the taxpayer's employer in operating a public fund covered by the deductible gift recipient categories overseas aid fund and developed country disaster relief fund;
(c) the activities of the taxpayer's employer where they are a charitable institution or religious institution which is income tax exempt because they are a prescribed institution located outside Australia or pursuing objectives principally outside Australia;
(d) the taxpayer's deployment outside Australia as a member of a disciplined force of Australia (generally considered to be the Australian Defence Force or Australian Federal Police); or
(e) an activity of a kind specified in the regulations.
Section 23AG(1AA) will be amended by No 135 of 2015, s 3 and Sch 2 item 1, by inserting "(except if that employer is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997))" after "employer" in para (a), effective 1 July 2016 and applicable to the 2016-17 year of income and later years of income.]
Section 995-1 of the ITAA 1997 states Australian government agency means:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth or of a State or a Territory.
Your foreign earnings will not be exempt.
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