Document ID: chunk:federal_register_of_legislation:F2018C00470:body:0:p3
Version: federal_register_of_legislation:F2018C00470
Segment Type: other
Provision Reference: 
Character Range: 5813–8806

year.

        (4) The person cannot choose more than one of the methods for the same income year.

       7  The simple self‑assessment method

        (1) Under the simple self‑assessment method, the person's foreign‑sourced income for the income year is an amount equal to the difference between:
           (a) the total amount of all the person's income for the income year, other than ordinary income or statutory income that has an Australian source; and
           (b) the standard deduction for the income year for the occupation in which the person derived the most income (other than ordinary income or statutory income that has an Australian source) for the income year.
 (2) For paragraph (1)(b), the standard deduction for an occupation is:
 (a) if the occupation has an occupation code listed in the ATO Occupation Code—the median ratio of work-related expenses to employment-related income calculated by the Australian Taxation Office for the occupation with that occupation code; or
 (b) otherwise—nil.

       8  The overseas assessed method

        (1) Under the overseas assessed method, the person's foreign‑sourced income for the income year is an amount equal to the person's income for taxation purposes according to the most recent assessment of the person's income, for a period of 12 months, by a taxation authority of a foreign country.

        (2) However, the overseas assessed method cannot be used to work out the person's foreign‑sourced income for the income year if:
           (a) the period to which that most recent assessment relates does not overlap with the income year; or
           (b) taxation authorities from different foreign countries have each made assessments of the person's income for periods of 12 months that overlap with the income year; or
           (c) that most recent assessment has already been used to work out the person's foreign‑sourced income for a previous income year.

       9  The comprehensive tax‑based assessment method

         Under the comprehensive tax‑based assessment method, the person's foreign‑sourced income for the income year is an amount equal to the difference between:
           (a) the total amount of all the person's income for the income year, other than ordinary income or statutory income that has an Australian source; and
           (b) the total amounts of the deductions that would be allowable under the income tax law if that income were assessable income.

       10  Translation of foreign currency

         For the purposes of subsection 154‑17(2) of the Act, convert an amount of a person's foreign‑sourced income for an income year that is in a foreign currency by translating the foreign currency to Australian currency at the average exchange rate for the financial year most closely corresponding to the income year.

       Part 3—Notices to be given to the Commissioner

       11  Purpose

         This Part sets out matters relating to the notices that must be given