Singapore Expats

Currently, certain foreign employment income earned by Australians working overseas for a continuous period of 91 days or more is exempt from income tax. The original intent of this measure was to relieve double taxation, however, in practice little foreign tax may actually be paid on the foreign income concerned.

Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.

Improving fairness and integrity in the tax system — better targeting the income tax exemption for employment income earned by Australians working overseas

Revenue ($m) 2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office ‑ ‑ 215.0 225.0 235.0


The Government will better target the income tax exemption for foreign employment income, with effect from 1 July 2009. The exemption will apply to income earned as an aid worker, a charitable worker, under certain types of government employment or on projects that are in the national interest. This measure will have an estimated gain to revenue of $675.0 million over the forward estimate period.

The measure forms part of a package of measures to improve fairness and integrity in the tax system.