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ATO Community

Foreign sourced income on tax assessment

Initiate

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Replies 7

Hi,
I am about to submit my foreign-sourced employment income tax return for the year when I was not an Australian tax resident. So I will be paying zero tax on this.
Would anyone know if in result my ATO tax assessment will indicate this reported income as "taxable income" or not?
This is important as I am sponsoring a family member visa and Home Affairs require supporting ATO tax assessment specifying a particular amount of my "taxable income".
Thanks in advance.
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ATO Certified Response

Taxicorn

Replies 4

If you were a Temporary Resident (here under a temp visa) then your UK income would be Assessable.

 

If you were considered a Non-resident (foreign resident) then it would be not accessible income and not included.

 

https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Residency/Examples-of...

 

7 REPLIES 7

Taxicorn

Replies 6

When did you earn this foreign source income?

 

Was it before you became an Australian Resident for tax?

 

If so were you considered a Non-Resident or a Temporary Resident?

 

 

Initiate

Replies 5

Foreign income was earned in UK in 2018 when I was non-resident in Australia. E.g. no ties, no property, etc. Now I have returned to live in Australia. I am an Australian citizen.
In order to provide Australian visa sponsorship for a family member, I am required to attach my Australian tax assessment for 2018 tax year. Which should state my taxable income. Home Affairs doesn't accept my UK tax assessment, insisting on ATO only. Hence, my idea is to submit my UK paperwork to the ATO and obtain an Australian assessment stating my taxable income for 2018 year.

Most helpful response

ATO Certified Response

Taxicorn

Replies 4

If you were a Temporary Resident (here under a temp visa) then your UK income would be Assessable.

 

If you were considered a Non-resident (foreign resident) then it would be not accessible income and not included.

 

https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Residency/Examples-of...

 

Initiate

Replies 3

ATO does not consider me resident for tax in 2018.
The question is - when I submit my foreign income for 2018 tax assessment - will ATO indicate my foreign income as "taxable income" amount under zero tax rate. Or they will indicate "zero" taxable income?

Taxicorn

Replies 2

If you were considered to be a non-resident for tax purposes then it doesn't go into your 2018 tax return as it is non-assessable and non-exempt income.

 

You are not taxed on it and therefore it doesn't go into your 2018 tax return

 

It's like it never existed as far as our 2018 tax return is concerned.

 

 

Initiate

Replies 1

Thanks @macfanboy. If I get you right, you are saying that if I submit my foreign income to ATO as a non-resident for tax purposes, then ATO assessment delivered in return will state zero in taxable income line.

ATO Certified Response

Community Moderator

Replies 0

Hi @Paulie

 

Welcome to our Community.

 

@macfanboy is correct. The following is from our website:

 

If you're not an Australian resident for tax purposes, you are only taxed on your Australian-sourced income, so you generally don't need to declare income you receive from outside Australia in your Australian tax return.

 

You can read more about it on our website by checking out the foreign income page.

 

If you have no income to declare, your Australian taxable income is zero.

 

Hope this helps.

 

Thanks,

 

ChrisR