Foreign income for family assistance purposes
Foreign income can affect how much Family Tax Benefit and Child Care Benefit you are eligible for.
When you provide a family income estimate for Family Tax Benefit and Child Care Benefit, we will ask you how much foreign income you expect to receive that financial year. Income from outside Australia is assessed differently for our other payments and services.
Your estimate must be in Australian dollars and cover the Australian financial year, which runs from 1 July to 30 June. We include your foreign income amount when we calculate your adjusted taxable income.
Foreign income for family assistance purposes includes any income you and your partner earn, derive or receive from outside Australia for which you don’t pay Australian tax.
Foreign income for family assistance purposes may include:
- foreign employment income that isn’t taxable in Australia
- gifts or allowances of money from any foreign source on a regular basis, including regular money or gifts from relatives living overseas, which are exempt from Australian tax, and
- income from foreign business interests or investments which are exempt from Australian tax
If your foreign income can’t be accessed within Australia, it doesn’t need to be included in your family income estimate. However, if you visit the country where you can gain access to your foreign income, your family assistance will need to be reassessed.
If your foreign income is taxable in Australia, you should include it as part of your taxable income when you provide your family income estimate.
If you’re not sure if your foreign income is taxable in Australia, contact the Australian Taxation Office via their website.
For family assistance purposes, we use the exchange rate from 1 July each year when assessing your income for that financial year.
The following table shows the exchange rates for 1 July 2016 that we will use for the 2016-17 Australian financial year.
|European Currency Unit||0.7050|
|Hong Kong Dollar||6.1075|
|New Zealand Dollar||1.0853|
|South African Rand||11.4056|
If you need the rate for a currency that isn’t listed above, call us.