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Australia - Overview and introduction

Overview and introduction

Taxation of international executives


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A person’s liability to Australian tax is determined by his/her residence status for taxation purposes and the source of income derived by him/her.

The general rule is that a person who is a resident of Australia is assessable on worldwide income (except to the extent that is exempt income). Non-residents and temporary residents are generally only assessable on income derived directly or indirectly from sources in Australia.

Net taxable income is taxed at graduated rates ranging from 19 percent to 45 percent. Different rates apply to non-residents. Generally, all non-cash fringe benefits provided to employees are subject to fringe benefits tax (FBT), a tax payable by the employer, with the value of such benefits being exempt from income tax in the hands of the employee. Australian residents (although not all expatriates) are also subject to a health care levy (Medicare Levy).

The official currency of Australia is the Australian Dollar (AUD).

Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.

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