Have been double taxed trying to work out tax relief

 Author: RachelATO(Community Moderator)Community Moderator

13 Mar 2026

Hi @Seashell,

You may be eligible for the foreign income tax offset to avoid double taxation on your UK income. The offset is designed to prevent you from paying tax twice when you've already paid tax in the UK, and you're also required to pay tax in Australia as a resident for tax purposes.

The offset isn't automatically applied. You need to claim it when you complete your Australian tax return. To claim the offset, you must have records to prove the tax has been paid in the UK.

For UK pensions, if you remain an Australian resident for tax purposes, you'll need to report all worldwide income, which includes UK pension income. You may be able to claim the foreign income tax offset on any UK tax paid on that pension income.

Because you have student debt, you're correct that you need to continue reporting your worldwide income to us Your repayment obligations are based on your total income, including foreign income.

You can lodge your tax return through ATO online services via myGov. When you lodge, you'll need to include your UK income and any tax paid in the UK. If you need help with the foreign income tax offset calculation or your specific circumstances, you can reach out to us or speak with a registered tax professional who can assist with your personal situation.

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