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_JackRR(Newbie)Newbie
11 Aug 2021

Hi there,

I was living overseas for the 2020-2021 tax period, only returning to earn income in Australia during May/June this year.

For all intents and purposes I was living abroad, earning a salary and paying tax there. I have completed my tax return for that country already.

I will be reporting the income earned in Australia during May/June. However, do I have to report my income earned whilst overseas? If so, does it fall under the 'foreign employment income' section on the declaration?

Thanks

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RachATO(Community Support)Community Support
12 Aug 2021

Hi @JackRR,

Firstly, welcome back!

You only need to report foreign income you've earned while being an Australian tax resident. So you'd firstly need to work out if your tax residency status changed while you were overseas.

If you were an Australian tax resident for that time, then yes, the foreign income would be declared at item 20 of your tax return. Because you've already paid foreign tax on the amount, you might be able to claim a foreign tax offset too!

If you weren't an Australian tax resident, then the foreign income earned isn't assessable, and doesn't need to be declared unless you had a government study or training support loan. In this case then the foreign income needs to be reported.

Let us know if you need more help with any of this :)

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Most helpful reply

RachATO(Community Support)Community Support
12 Aug 2021

Hi @JackRR,

Firstly, welcome back!

You only need to report foreign income you've earned while being an Australian tax resident. So you'd firstly need to work out if your tax residency status changed while you were overseas.

If you were an Australian tax resident for that time, then yes, the foreign income would be declared at item 20 of your tax return. Because you've already paid foreign tax on the amount, you might be able to claim a foreign tax offset too!

If you weren't an Australian tax resident, then the foreign income earned isn't assessable, and doesn't need to be declared unless you had a government study or training support loan. In this case then the foreign income needs to be reported.

Let us know if you need more help with any of this :)

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