Private ruling: Section 23AG exempt income
Date of advice: 6 March 2024
Published: 15 April 2024
Ruling period: Year ending DD MM 20YY | Year ended DD MM 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Is your income derived from your deployment in a foreign country exempt from income tax in Australia under section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936) ? | A1: Yes. Subsection 23AG (1) of the ITAA 1936 provides that foreign earnings of an Australian resident derived during a continuous period of foreign service of not less than 91 days employment in a foreign country are exempt from income tax in Australia. You have been deployed for longer than 91 days of unbroken foreign service as a member of a recognised disciplined force to which the provisions of section 23AG of the ITAA 1936 apply. Therefore, the income you derive from your employment in Country A is exempt from tax in Australia under section 23AG of the ITAA 1936.

Relevant facts and circumstances: This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are employed as a member of a recognised disciplined force. You were deployed to Country A on DD MM 20YY for a period of X years with possible extensions up to X years. You have been engaged in foreign service for a period of not less than 91 days. Your income is paid by your Australian employer. You are not attached to Australian High Commission for Department of Foreign Affairs and Trade Purposes. You do not have any diplomatic privileges. Your deployment is covered by a memorandum of understanding between Australia and Country A. There is no tax treaty in force between Australia and Country A during the ruling period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1936 section 23AG