Overseas Forces Tax Exemptions – Do They Apply To Me?

In this post we’ll discuss the two overseas forces tax exemptions available to overseas forces and how to work out which, if any, you may have already received.

Section 23AD Exemption

 
To qualify for this tax exemption, you must receive a certificate from the Chief of the Defence Force which states that you have been/are deployed on eligible duty with a specified organisation in a specified area and our Accountants at AIMs will be able to help you out with sorting you’re tax exemptions as we have a qualified team of non-resident tax accountants at AIMS.

This income is not taken into account by the ATO in calculating tax on other assessable income and is not listed on your PAYG summary.

There will however be a note at the bottom of your PAYG which states a special concession or exemption applies. It will list Section 23 AD as the exemption and the number of days it applies for.

Section 23AG Exemption

 
The section 23AG exemption applies to Australian Defence Forces members who serve overseas for a continuous period of 91 days or more and earns foreign employment income.

Please note, this income is taken into account by the ATO in calculating tax on other assessable income you earn during the financial year and it must be included on your individual tax return at item 20N.

If you qualify for this exemption, income earned will be listed on your PAYG Summary under “Exempt Foreign Employment Income”. There will also be a note at the bottom of your PAYG which states a special concession or exemption applies. It will list Section 23AG as the exemption and the number of days it applies for. Please call us today to discuss your non resident tax return services on 1300 112 467