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Edited version of private advice
Authorisation Number: 1052326202626
Date of advice: 15 November 2024
Ruling
Subject: Assessable income
Question 1
Is the income you derived from employment services performed outside Australia as a foreign resident during the relevant income year subject to tax in Australia?
Answer 1
No. Based on the information provided to the Commissioner the foreign employment income amount reported by your employer and prefilled into your tax return, is not assessable in Australia.
Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source.
You are not a resident of Australia for taxation purposes.
The foreign employment income amount is therefore not assessable income in Australia.
Question 2
Is the income you derived from employment services performed in Australia as a foreign resident during the relevant income year subject to tax in Australia?
Answer 2
Yes. Based on the information provided to the Commissioner the amount which has been prefilled into the relevant tax return is assessable in Australia.
Section 6-5 of the ITAA 1997 sets out that a non-resident of Australia is taxed on their Australian sourced income.
You were in Australia for a total of XX weeks working for your Australian employer.
The income is therefore sourced in Australia and assessable in Australia.
This ruling applies for the following period:
Year ended 30 June XXXX
The scheme commenced on:
1 July XXXX
Relevant facts and circumstances
You are a non-resident of Australia for taxation purposes.
You are employed by Australian Employer Z.
You work a number of weeks on and a number of weeks off.
You spend your time off in Country Z where you live with your spouse.
You hold a Temporary Resident Card in Country Z valid until XX XX XXXX.
You worked in Australia for XX weeks, Country X for XX weeks and Country Y for the remainder of the 20XX. income year.
You derived income for employment exercised in Australia and foreign employment income, both from Employer Z in the relevant income year which prefilled into your 20XX tax return.
You paid tax on this income in Country Y.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5