Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:1_1:p1
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/11)
Character Range: 1965–5096

1  At the end of Division 768
Add:

Subdivision 768‑R—Temporary residents

Guide to Subdivision 768‑R

768‑900  What this Subdivision is about

      This Subdivision modifies the general tax rules for people in Australia who are temporary residents, whether Australian residents or foreign residents.
      Generally foreign income derived by temporary residents is non‑assessable non‑exempt income and capital gains and losses they make are also disregarded for CGT purposes. There are some exceptions for employment‑related income and capital gains on shares and rights acquired under employee share schemes.
      Temporary residents are also partly relieved of record‑keeping obligations in relation to the controlled foreign company and foreign investment fund rules.
      Interest paid by temporary residents is not subject to withholding tax and may be non‑assessable non‑exempt income for a foreign resident.

Table of sections

Operative provisions

768‑905 Objects
768‑910 Income derived by temporary resident
768‑915 Certain capital gains and capital losses of temporary resident to be disregarded
768‑920 Capital gains and losses on employee shares and rights where taxation of discount not deferred
768‑925 Notional gain or loss
768‑930 Adjustment to notional gain or loss
768‑935 Adjustment for share or right acquired under employee share scheme
768‑940 Adjustment for derived share
768‑945 Amending assessment to take account of effect on capital gain or loss of recalculating discount
768‑950 Individual becoming an Australian resident
768‑955 Temporary resident who ceases to be temporary resident but remains an Australian resident
768‑960 Temporary resident not attributable taxpayer for purposes of controlled foreign companies rules
768‑965 Exemption of temporary resident from taxation in respect of foreign investment fund income
768‑970 Modification of rules for accruals system of taxation of certain non‑resident trust estates
768‑975 Calculation of beneficiary's share of net income of non‑resident trust estate
768‑980 Interest paid by temporary resident

Operative provisions

768‑905  Objects

  The objects of this Subdivision are to:
 (a) provide *temporary residents with tax relief on most foreign source income and capital gains; and
 (b) relieve the burdens associated with complying with certain record‑keeping obligations and interest withholding tax obligations.

768‑910  Income derived by temporary resident

 (1) The following are *non‑assessable non‑exempt income:
 (a) the *ordinary income you *derive directly or indirectly from a source other than an *Australian source if you are a *temporary resident when you derive it;
 (b) your *statutory income (other than a *net capital gain) from a source other than an Australian source if you are a temporary resident when you derive it.
This subsection has effect subject to subsections (3) and (5).

Note: A capital gain or loss you make may be disregarded under section 768‑915.

 (2) For the purposes of paragraph (1)(b):
 (a) if you have statutory income because a particular circumstance occurs, you derive the statutory income