Private ruling: Foreign income
Date of advice: 15 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is the income received from overseas tax exempt under Section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. Your foreign earnings you derived for the period ended 30 June 2018 of Foreign Service is exempt under section 23AG of the ITAA 1936, as the exemption it is not excluded by the operation of 23AG(1AA) or 23AG(2).

Relevant facts and circumstances: You are an Australian resident for tax purposes. You are employed by a Non-Government Agency in Australia. You were sent overseas from 20XX to provide a foreign service and have been located overseas for more than 91 days. Your employment is directly related to an activity that is listed in subsection 23AG(1AA) of the ITAA 1997. You were sent overseas under a Memorandum of Understanding between Australia and Country X. You took recreational leave and returned to Australia for those periods and did not perform work duties. This did not impact the 1/6 legislative rule as a continuous period of foreign service.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 23AG