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Edited version of private advice
Authorisation Number: 1051993078266
Date of advice: 14 June 2022
Ruling
Subject: Foreign income
Question
Is your foreign income and allowances exempt from tax in Australia?
Answer
Yes.
Based on the information provided to the Commissioner, your foreign salary and allowances are exempt from tax under 23AG of the Income Tax Assessment Act 1936 as you are a resident of Australia, your employment in Country Z is for more than 91 days, you will be delivering Official Development Assistance and your income is not exempt from tax in Country Z.
Your foreign income is not required to be declared in your Australian tax return.
This ruling applies for the following period:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are a resident of Australia for taxation purposes.
You are a member of the relevant organisation.
You are employed overseas.
The employment is for a period of several years.
Your position is being funded by the Australian Government under the Department of Foreign Affairs and Trade (DFAT) with Official Development Assistance (ODA) towards the promotion of the economic development and welfare of the people of Country Z.
While you are employed overseas you will remain a member of the same organisation on leave without pay whilst in receipt of ODA support.
You will be employed by a government authority of Country Z. You will not be employed by an Australian government agency.
Country Z will impose tax on your income.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 23AG