Private ruling: International - income - privileges and immunities
Date of advice: 7 November 2025
Published: 22 December 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: DD MM 20XX

Ruling: Q1: Is the income you receive from Organisation A as an Individual Consultant exempt under the International Organisations (Privileges and Immunities) Act 1963 (IOPI Act)? | A1: No.

Relevant facts and circumstances: Background You are an Australian resident for tax purposes. During the relevant income year, you commenced an Individual Consultant Contract (the Contract) with Organisation A. Your primary objective is to develop inclusive green finance roadmaps for Country A and Country B. Your assignment is expected to require 2 trips to Country A and 2 trips to Country B. You anticipate that you will spend about two-thirds of your time overseas and a third of your time in Australia for this assignment. You do not have any special visa or passport in relation to the work you are performing for Organisation A. You do not have any direct reports as part of this role. Organisation A Organisation A is a public-private, globally represented, non-profit institution established under Country X domestic law. It is a treaty-based international, inter-governmental organisation which supports sustainable economic growth in developing countries and emerging economies. In particular, Organisation A helps developing countries deliver on their commitments under the Paris Climate Agreement and meet the United Nations (UN) Sustainable Development Goals. Australia is a member of Organisation A and serves on Organisation A's Council by providing strategic direction and oversight of Organisation A's work program and budget. Organisation A is not an entity established by the UN. Individual Consultant Contract You have been engaged by Organisation A as an independent contractor to perform work connection with the implementation of Organisation A's program within an agreed period. Under the Contract: • you will be remunerated for your services at the completion of each deliverable stipulated in the Contract. • the privileges and immunities of Organisation A shall not extend to you, however, Organisation A may consider you as an 'expert' for Organisation A in a country where Organisation A has an existing agreement on privileges and immunities with the relevant government. • you shall be responsible for paying any tax levied by your government, the governments of Country A and Country B or other entities on payments to you for the services rendered under the Contract.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 subsection 6-15(2) | Income Tax Assessment Act 1997 section 6-20 | International Organisations (Privileges and Immunities) Act 1963 | International Organisations (Privileges and Immunities) Act 1963 section 3 | International Organisations (Privileges and Immunities) Act 1963 subsection 3(1) | International Organisations (Privileges and Immunities) Act 1963 subsection 5A(1) | International Organisations (Privileges and Immunities) Act 1963 subsection 5A(2) | International Organisations (Privileges and Immunities) Act 1963 subsection 6(1) | International Organisations (Privileges and Immunities) Act 1963 paragraph 6(1)(d) | International Organisations (Privileges and Immunities) Act 1963 paragraph 6(1)(e) | International Organisations (Privileges and Immunities) Act 1963 Part I of the Second Schedule | International Organisations (Privileges and Immunities) Act 1963 Part I of the Fourth Schedule | International Organisations (Privileges and Immunities) Act 1963 Part I of the Fifth Schedule | International Organisations (Privileges and Immunities) Act 1963 paragraph 2A of Part I of the Fifth Schedule | Specialized Agencies (Privileges and Immunities) Regulations 1986 regulation 2 | United Nations (Privileges and Immunities) Regulations 1986 | United Nations (Privileges and Immunities) Regulations 1986 sub-regulation 10(1) | United Nations (Privileges and Immunities) Regulations 1986 sub-regulation 11(1)

Reasons for decision: Summary: Organisation A is not an 'overseas organisation', an 'international organisation', nor a UN organisation to which the IOPI Act applies. The payments you receive from Organisation A are not exempted from tax under the IOPI Act. Accordingly, the income is not exempt income for the purposes of section 6-20 of the Income Tax Assessment Act 1997 (ITAA 1997). | Detailed Reasoning - Assessable income: Section 6-5 of the ITAA 1997 sets out the basic rules relating to ordinary income. The assessability of ordinary income is affected by the residence-status of the person who derives it. For Australian residents, your assessable income includes income from all sources, whether in or out of Australia. If an amount is exempt income, then it is not assessable income under subsection 6-15(2) of the ITAA 1997. The provisions related to exempt income are contained in section 6-20 of the ITAA 1997. An amount is exempt income if it is made exempt from income tax by a provision of either the ITAA 1997 or another Commonwealth law. This includes income received by a person who is connected with an international organisation that is exempt under the IOPI Act. | Detailed Reasoning - Exempt income under IOPI Act: Australian residents who earn income from working for certain international organisations may be exempted from taxation under the IOPI Act. The IOPI Act exempts certain income of a person connected with an international organisation from tax to the extent it satisfies all of the following elements: • the income is received from an international organisation to which the IOPI Act applies; • the person is connected with the international organisation in one of the specified ways; and • the conditions and other particulars provided in the regulations for the international organisation are satisfied in relation to the income of the person. An 'international organisation to which this Act applies' means an organisation that is declared by the 'regulations' to be an international organisation to which the IOPI Act applies, and includes a body established by such an organisation (subsection 3(1) of the IOPI Ac). The 'regulations' that the IOPI Act refers to are the Specialized Agencies (Privileges and Immunities) Regulations 1986 (SAPI Regulations) and the United Nations (Privileges and Immunities) Regulations 1986 (UNPI Regulations). 'Specialized Agency' is defined under regulation 2 of the SAPI Regulations to mean any agency specified in column 2 of an item in the Schedule (as below). Table 1: Specialized Agency | Detailed Reasoning - Office: 1 International Labour Organisation Director-General of the International Labour Office Deputy Director-General of the International Labour Office Assistant Director-General of the International Labour Office 2 Food and Agriculture Organization of the United Nations Director-General Deputy Director-General Assistant Director-General 3 International Civil Aviation Organization Secretary-General President of the Council 4 United Nations Educational, Scientific and Cultural Organization Director-General Deputy Director-General 5 International Monetary Fund Managing Director 6 International Bank for Reconstruction and Development President 7 World Health Organization Director-General Deputy Director-General Assistant Director-General Regional Director 8 Universal Postal Union Director-General of the International Bureau 9 International Telecommunication Union Secretary-General 10 World Meteorological Organization Secretary-General 11 International Maritime Organization Secretary-General Deputy Secretary-General Secretary of the Maritime Safety Committee 12 International Finance Corporation President 13 International Development Association President 14 World Intellectual Property Organization Director-General Deputy Director-General 15 International Fund for Agricultural Development President Vice-President 16 United Nations Industrial Development Organization Director-General Deputy Director-General The taxation exemptions that can be conferred upon certain persons connected with an international organisation are set out in subsection 6(1) and Part I of the Second to the Fifth Schedules to the IOPI Act. This includes a person who 'holds an office' in an international organisation (but who is not a holder of a high office) under paragraph 6(1)(d) and Part I of the Fourth Schedule to the IOPI Act. It also includes a person who is serving on a committee, participating in the work, or performing a mission for an international organisation under paragraph 6(1)(e) and Part I of the Fifth Schedule of the IOPI Act. The exemption from taxation on salaries and emoluments received from an international organisation is contained in item 2 of Part 1 of the Fourth Schedule and item 2A of Part I of the Fifth Schedule of the IOPI Act. | Detailed Reasoning - Overseas organisation: Under subsection 5A(1) of the IOPI ACT, the regulations may declare an entity to be an 'overseas organisation' to which the IOPI Act applies in the following circumstances: • an organisation the members of which are overseas countries in a particular geographical region; • an organisation that is constituted by persons representing overseas countries in a particular geographical region; or • an organisation established, or a group of organisations constituted, by: - organisations the members of which are overseas countries in a particular geographical region; or - organisations that are constituted by persons representing overseas countries in a particular geographical region. The exclusions to what will be considered an 'overseas organisation' are contained in subsection 5A(2) of the IOPI Act. This includes where Australia is a member of the organisation; or the organisation is constituted by a person or persons representing Australia and a person or persons representing a country or countries other than Australia. | Detailed Reasoning - United Nations organisations: The UNPI Regulations outline the privileges and immunities granted to the UN and those connected to the organisation. The UN is an international organisation to which the IOPI Act applies under section 3 of the IOPI Act. Sub-regulation 10(1) of the UNPI Regulations provides that officers (other than high officers) of the UN are entitled to the privileges and immunities specified Part I of the Fourth Schedule to the IOPI Act. Sub-regulation 11(1) of the UNPI Regulations provides that a person performing a mission on behalf of the UN is entitled to the privileges and immunities specified in items 1, 2, 3, 4, 5 and 6 of Part I of the Fifth Schedule to the IOPI Act. These privileges do not include the exemption from tax specified in paragraph 2A of Part I of the Fifth Schedule of the IOPI Act. | Detailed Reasoning - Office holder, serving on a committee, or performing a mission of an international organisation: Taxation Ruling TR 2025/1 Income tax: exempt income of international organisations and persons connected with them (TR 2025/1) contains the Commissioner's view on whether a person is an office holder, serving on a committee, or performing a mission of an international organisation. The Commissioner's view on the meaning of office holder is set out in paragraphs 25 to 36 of TR 2025/1. Whether someone is an office holder is a question of fact which must be considered on a case-by-case basis. There are six criteria for determining whether a person can be said to hold an office in an international organisation under paragraph 29 of TR 2025/1: 4 positive criteria • a position to which certain duties attach - the office must exist within the international organisation regardless of the individual who occupies the office from time to time; • duties relating to the performance of the organisation's functions - the office must have identifiable duties, functions and responsibilities or powers; • a level of authority with respect to the organisation; • the position of the person within the international organisation, and the duties and authority associated with it, should make it apparent why the privileges and immunities are conferred; 2 negative criteria, the presence of which would indicate the person is not an office holder • the position places the person outside the organisational structure; • the position does not provide the person with any defined duties or authority with respect to the organisation and its functions. Paragraph 31 of TR 2025/1 explains an office holder can include a person who works as an employee of the international organisation, but an office holder does not include a person (whether an employee or not) who is: • locally engaged and paid an hourly rate; or • engaged as an expert or consultant. Under paragraph 39 of the TR 2025/1, a person needs to be representing the organisation to be considered to be 'serving' on a committee of an international organisation. The committee would generally be an external-facing committee of the international organisation - that is, one that facilitates it to carry out its core work. For a person to perform a mission on behalf of an international organisation, the person doing that is required to represent the organisation to someone else, as provided in paragraph 41 of TR 2025/1. This connotates some interaction between the international organisation and someone else where the person acts on behalf of the organisation, even if that is only temporarily. | Detailed Reasoning - Application to your circumstance: Organisation A is not listed as a 'Specialized Agency' in the Schedule to the SAPI Regulations. This means that it is not an 'international organisation' for the purposes of the IOPI Act. Australia is a member of Organisation A and is therefore not an 'overseas organisation' for the purposes of the IOPI Act due to the exclusion under subsection 5A(2). Organisation A is also not an organisation of the UN, so the UNPI Regulations does not apply. Even if the UNPI Regulations did apply, you would be unlikely to be considered an office holder of an international organisation. This is because experts or consultants are excluded from being office holders in accordance with paragraph 31 of TR 2025/1. Furthermore, even if you were considered performing a mission on behalf of a UN international organisation, there is no exemption from taxation available under the UNPI Regulations for this kind of work. This means that for Australian taxation purposes, any income tax exemption that may be available under the IOPI Act does not apply to people connected with Organisation A. The payments you receive from Organisation A are therefore not exempted from tax under the IOPI Act. Hence, the income you receive from Organisation A is not exempt income under section 6-20 of the ITAA 1997.