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Exempt income and other tax obligations

How your foreign employment income can affect other aspects of your tax, even if it is exempt from income tax.

Last updated 30 June 2024

Medicare levy and surcharge

Your exempt foreign employment income is included in the calculation of your liability for the Medicare levy.

Your total reportable fringe benefits amount and reportable employer superannuation contribution amount are also added to your taxable income to work out your liability for the Medicare levy surcharge.

Income tests

We take your exempt foreign employment income into account when we work out your adjusted taxable income (ATI). This is one of the income tests that apply from 1 July 2009.

We use your ATI to determine if you are eligible for some tax offsets.

Student loan repayments

We include your exempt foreign employment income when we work out your repayment income as part of working out your study and training support loans for the year.

If you have a study or trade support loan, we include your exempt foreign employment income to work out your repayment income. You must make compulsory repayments to your study or training support loan when your repayment income exceeds the minimum repayment threshold.

Employee share scheme benefits

If a benefit you receive under an employee share scheme (ESS) forms part of your foreign employment income and your foreign employment income:

  • is tax exempt, the benefit is also exempt.
  • isn’t tax exempt, the benefit is also not exempt.

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