Private ruling: Assessable income
Date of advice: 15 November 2024
Published: 13 January 2025
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: 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? | A1: 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. | Q2: 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? | A2: 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.

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