| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. 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 your private ruling
Authorisation Number: 1012607584810
Ruling
Subject: Assessability of income earned while on overseas deployment
Question and answer:
Is the income you earn while you are deployed overseas as a member of a disciplined force exempt from taxation in Australia under the provisions of section 23AG of the Income Tax Assessment Act 1936?
Yes.
This ruling applies for the following period:
1 July 2013 to 30 June 2014
The scheme commenced on:
1 July 2013.
Relevant facts and circumstances:
You are an Australian resident.
You have been deployed overseas by the Australian government as a member of a disciplined force engaged in foreign service for a period exceeding 91 continuous days.
There is an agreement in place between the governments of Australia and the country you are serving in that exempts the income you earn while on deployment from being taxed in that country.
You have not taken any form of leave from your deployment and you do not intend to take any form of leave until your deployment ceases.
Relevant legislative provisions:
Income Tax Assessment Act 1936 Section 23AG
Reasons for decision
Subsection 23AG(1) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that foreign earnings are exempt from income tax in Australia where all of the following requirements are satisfied:
• you are a resident of Australia and a natural person,
• you are engaged in foreign service,
• the foreign service is for a continuous period of at least 91 days,
• you derive foreign earnings from that foreign service,
• the foreign service is directly attributable to an activity that is listed in subsection 23AG(1AA) of the ITAA 1936 (the listed activities include being deployed overseas as a member of a disciplined force), and
• the foreign earnings are not exempt from income tax in the foreign country only because of one of the reasons listed in subsection 23AG(2) of the ITAA 1936 (the listed reasons include being deployed overseas as a member of a disciplined force.
Based on the facts you have provided, it is accepted that you meet the criteria for the exemption under section 23AG of the ITAA 1936 to apply to you. Accordingly, the income you earn during that period of your deployment to the project will be exempt from income tax in Australia.