Overseas income and tax

Do you have clients who receive income from foreign sources or have a bank account in another country? This tax time is a good time to remind them that Australian residents for tax purposes must declare any income they earn anywhere in the world.

This includes income from overseas bank accounts such as interest, rental income from overseas properties, and capital gains from selling an overseas property.

Even if a resident has already paid tax on the foreign income in another country, the income still needs to be included in their Australian tax return. In their tax return they can usually claim a foreign income tax offset so that they are not double-taxed.

Working out residency status

A person might be an Australian resident for tax purposes even if they are not an Australian citizen or permanent resident. There is a tool people can use to work out their residency status at ato.gov.au/residency.

More information

For more information in English, visit <ato.gov.au/internationaltax> or call the ATO on 13 28 61. People who don’t speak English well can phone the Translating and Interpreting Service (TIS) on 13 14 50 for help with their call.

For general tax information in up to 25 languages visit:


Updated: 07/10/2015 — 18:51:01