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Exempt income

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Exempt income is a non-taxable income. However, we might take into consideration the deductable tax losses of our previous income years along with the adjustable taxable income of our dependants. It might incorporate: Australian Government pensions, allowances and payments, education payments; overseas pay and allowances for Australian Defence Force and Federal Police personnel; and some scholarships, bursaries, grants and awards.

For a foreign employment to be exempt, it needs to have the following criteria:

  • 91 or more days of continuous engagement in a foreign service;
  • Being an Australian resident is a must;
  • Foreign service is directly inferable to any of the following:
    • The business, with the exemption that it is an Australian Government organisation, has to convey Australian Office Development Assistance (ODA);
    • Proclamation of the activities performed by the employer as a developing nation relief fund by the Treasurer;
    • Exercises of the business performed for providing monetary relief to people in a developing country who are in distress due to a disaster;
    • Business activities located outside of Australia or pursuing objectives outside Australia;
    • An Australian government (or an authority thereof) working on a development work outside of Australia.
  • Non-exempt conditions do not exclude one from exemptions.

The exempt income list consists of the following organisations:

  • Community Service Organisations;
  • Cultural Organisations;
  • Educational Organisations;
  • Health Organisations;
  • Employment Organisations;
  • Resource Development Organisations;
  • Scientific Organisations;
  • Sporting Organisations;
  • Registered Charities, as they are exempt entities.

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