Is the income you earn from your employment with the Employer exempt income and therefore not assessable under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Yes. Article XX of the relevant DTA provides that remuneration paid by Country A in respect of services rendered in the discharge of governmental functions shall be taxable only in Country A. The Employer is wholly owned, controlled and funded by Country A's government. Article XX of the DTA will therefore apply to you. Income earned from your employment with the Employer will be exempt income and is not assessable under section 6-5 of the ITAA 1997. This ruling applies for the following periods : Year ended 30 June 20XX Year ending 30 June 20XX The scheme commenced on: 30 June 20XX
You are a Country A citizen. You are in Australia with your partner. You are not studying while you are in Australia nor do you intend to. You do not have any children. You don't own any property in Australia or Country A. Your savings are in Country A bank accounts. All of your personal belongings are stored in Country A. You have been employed by the Employer from Date one and your contract expires on Date 2. The Employer is entirely owned and financed by the government of Country A. The Employer is obligated by contract with the Government of Country A to broadcast emergency messages from Country A emergency authorities through communication platforms. The Employer has had a presence in Australia with a small office for some time. The function of the room is to work nighttime shifts in Country A, which is daytime hours in Australia. You are in Australia on a 482 Temporary Skills Shortage visa. When you initially arrived in Australia, you entered on a 417 Working Holiday visa. When your contract with the Employer finishes, you will return to Country A.
Income Tax Assessment Act 1997 section 6-5 International Tax Agreements Act 1953