Disclaimer
You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation number: 1052492683439

Date of advice: 14 January 2026

Ruling

Subject: Assessable income

Question 1

Is your employment income from overseas assessable in Australia?

Answer 1

Yes.

Question 2

Are you entitled to claim a Foreign Income Tax Offset (FITO) for the tax paid on the overseas income in Australia?

Answer 2

No.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are a temporary resident of Australia.

You enter Australia on a temporary visa.

You were resident of Australia for taxation purposes for the relevant income year.

You work for your overseas employer in the relevant income year.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subdivision 768-R

Reasons for decision

Subdivision 768-R of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes and meet the requirements to be a temporary resident of Australia you will be subject to the following temporary resident rules:

•                     Any income you earn from an overseas source will not be taxed in Australia except income earned from overseas employment performed while you are a temporary resident.

•                     Any capital gain you make from a capital gains tax event that relates to an asset that is not taxable Australian property will not be taxed in Australia.

•                     Special rules apply to capital gains on shares and rights acquired under employee share schemes.

Your income derived from your employment overseas will be assessable in Australia and required to be declared in your Australian tax return.

You are not able to claim a FITO in Australia on the tax paid overseas as Australia has the primary taxing rights on the income.

You will need to approach the overseas tax authorities regarding any FITO.

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).