FOREIGN INCOME
Foreign Income If you’re an Australian resident for tax purposes, you are taxed on your worldwide income, so you must declare any foreign income in your income tax return. Foreign income includes: • Foreign pensions and annuities • Foreign employment income • Foreign investment income • Foreign business income • Capital gains on overseas assets. As your foreign income may also be taxed in the source country, it is potentially subject to double taxation. To overcome this, Australia has a system of credits and exemptions and has signed tax treaties with more than 40 countries, including all our major trade and investment partners. From September 2018, ATO will be receiving and exchanging financial account information with participating foreign tax authorities to ensure that Australian residents with financial accounts in other countries are complying with Australian tax law. If you have foreign income that you have not disclosed, you may be liable to pena...