The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.T.05 Target foreign income


For the purposes of FA, target foreign income includes foreign income as defined in the SSAct and tax exempt foreign income under Income Tax Assessment Act 1936 section 23AF and section 23AG.

Foreign income includes:

  • any income amount earned, derived or received from sources outside Australia (1.1.A.120) for the person's own use or benefit, or
  • periodical payments or benefits by the way of gifts or allowances from a source outside Australia.

Tax exempt foreign income includes income that is exempt from tax under Income Tax Assessment Act section 23AF and section 23AG and reduced (but not below nil) by the total amount of losses and outgoings (except capital losses and outgoings) incurred by the individual in deriving that exempt income.

Act reference: FAAct Schedule 3 clause 5 Target foreign income

SSAct section 10A(2)-'foreign income'

Income Tax Assessment Act 1936 section 23AF Exemption of certain income derived in respect of approved overseas projects, section 23AG Exemption of income earned in overseas employment

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