Earning Income from Overseas? Here’s What You Need to Know

If you’re an Australian resident for tax purposes, you’re required to declare all your worldwide income in your tax return — not just what you earn in Australia.

This includes money earned while working overseas, income from foreign investments, pensions, and even some cryptocurrency earnings from international exchanges.

What Counts as Foreign or Worldwide Income?

Foreign income includes any earnings you receive from outside Australia. Common examples include:

• Wages or salary from overseas employment
• Foreign pensions or annuities
• Rental income from properties located overseas
• Interest or dividends from foreign banks or shares
• Business income from overseas operations
• Capital gains from selling overseas assets
• Income from foreign trusts or partnerships

You must report this income even if:

• You’ve already paid foreign tax on it
• You transfer it to an Australian bank account at a later time
• You don’t bring the money into Australia at all

Working Overseas?

If you’re an Australian tax resident working temporarily overseas, you still need to declare your foreign salary or wages. However, if you’ve paid tax in that country, you might be entitled to a foreign income tax offset to avoid being taxed twice.

If you’re no longer an Australian resident for tax purposes, different rules apply. You generally only pay tax on your Australian-sourced income.

Receiving a Foreign Pension or Annuity?

Foreign pensions (such as from government or private overseas retirement funds) are usually taxable in Australia. Even if the payments are exempt from tax overseas, you may still need to declare them here.

In some cases, only a portion of the pension may be taxable, depending on whether contributions were made by you or your employer.

Foreign Investments and Cryptocurrency

If you hold overseas shares, bank accounts, or cryptocurrency on an international exchange, any earnings — including interest, dividends, or gains from selling assets — must be declared in your Australian tax return.

Cryptocurrency is treated as an asset, not a currency, by the ATO. If you dispose of crypto (including swapping it for another coin), it may trigger a capital gains tax (CGT) event.

Foreign Income Tax Offset: Avoid Double Taxation

If you’ve already paid tax on your foreign income in another country, you may be eligible for a foreign income tax offset. This helps prevent double taxation, but you’ll need records to prove how much foreign tax was paid.

Keep Good Records

To stay compliant and avoid penalties, make sure you keep thorough records, including:

• Income statements or payslips from overseas work
• Bank statements or dividend notices from foreign accounts
• Pension or annuity documentation
• Details of foreign tax paid
• Records of crypto transactions

Keep these for at least five years after you lodge your tax return.

Unsure What to Declare?

Foreign income can be complex. If you’re unsure about your residency status or what income you need to declare, it’s best to speak with a registered tax agent.

Source: ato.gov.au