Things you need to know
Target foreign income is:
- any income earned, derived or received from sources outside Australia
- a periodical payment by way of gifts or allowances from a source outside Australia
- a periodical benefit by way of gifts or allowances from a source outside Australia.
provided that the amount has not been included in your taxable income, nor received in the form of a fringe benefit.
Types of target foreign income you need to show at this question include:
- regular receipts of money and gifts from relatives living overseas which are exempt from Australian tax
- income from foreign business interests and investments, which are exempt from Australian tax, including income received by migrants with business interests in their country of origin
- foreign source income received while you were a temporary resident that is exempt from Australian tax
- the amount of exempt foreign employment income you have shown at question 20 – label N.
If you are not sure whether any foreign income you have received is target foreign income, contact us.
Did you receive any target foreign income?
- No – Write 0 (zero) at question IT4 – label V, then go to question IT5 Net financial investment loss 2024.
- Yes – Read on.
What you need to answer this question
You will need details of any target foreign income that you received in 2023–24 including the details of any exempt foreign employment income you included at question 20 – label N.
Completing your tax return
To complete this question, follow the steps 1 and 2 below.
Show all foreign income in Australian dollars using the market exchange rate for 1 July 2023. For more information, see Foreign exchange rates. For information on how to convert your foreign income, contact us.
Step 1
Add up all the target foreign income you earned, derived or received during 2023–24, including the amount you have shown at question 20 – label N.
Step 2
Write the total at question IT4 – label V.
Where to go next
- Go to question IT5 Net financial investment loss 2024.
- Return to main menu Individual tax return instructions 2024.
- Go back to question IT3 Tax-free government pensions or benefits 2024.