Document ID: chunk:federal_register_of_legislation:C2025C00014:section:23ag:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 23AG (pt 1/5)
Character Range: 120412–123067

23AG  Exemption of income earned in overseas employment
 (1) Where a resident, being a natural person, has been engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived by the person from that foreign service are exempt from tax.
 (1AA) However, those foreign earnings are not exempt from tax under this section unless the continuous period of foreign service is directly attributable to any of the following:
 (a) the delivery of Australian official development assistance by the person's employer (except if that employer is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997));
 (b) the activities of the person's employer in operating a public fund that:
 (i) is covered by item 9.1.1 or 9.1.2 of the table in subsection 30‑80(1) of the Income Tax Assessment Act 1997 (international affairs deductible gift recipients); and
 (ii) meets the special conditions mentioned in that item;
 (c) the activities of the person's employer, if the employer is exempt from income tax because of paragraph 50‑50(1)(c) or (d) of the Income Tax Assessment Act 1997 (prescribed institutions located or pursuing objectives outside Australia);
 (d) the person's deployment outside Australia as a member of a disciplined force by:
 (i) the Commonwealth, a State or a Territory; or
 (ii) an authority of the Commonwealth, a State or a Territory;
 (e) an activity of a kind specified in the regulations.
 (1A) A person is taken, for the purposes of subsection (1), to have been engaged in foreign service for a continuous period of 91 days if:
 (a) the person died at a time when he or she was engaged in foreign service for a continuous period of less than 91 days; and
 (b) he or she would have otherwise continued to be engaged in the foreign service; and
 (c) his or her continuous period of engagement in the foreign service would have otherwise been a period of at least 91 days.
 (2) An amount of foreign earnings derived in a foreign country is not exempt from tax under this section if the amount is exempt from income tax in the foreign country only because of any of the following:
 (a) a law of the foreign country giving effect to a double tax agreement within the meaning of Part X;
 (b) a double tax agreement within the meaning of Part X;
 (c) provisions of a law of the foreign country under which income covered by any of the following categories is generally exempt from income tax:
 (i) income derived in the capacity of an employee;
 (ii) income from personal services;
 (iii) similar income;
 (d) the law of the foreign country does not provide for the imposition