Foreign income for family assistance and Paid Parental Leave scheme payments 108-03040060

Scenario

Outcome

Claire contacts Services Australia to update her income estimate for the current financial year. She advises that she has rental income from a property that she owns overseas and after a discussion with the Australian Taxation Office (ATO) has been advised that the income will be taxable.

Although the income has been derived from overseas sources, it is to be included in Claire's personal income tax return as taxable income. Therefore, it is not classed as Foreign Income for family assistance purposes and should be included as part of Claire's taxable income estimate only.

Encourage Claire to use self-service options to update her income estimate, confirming that the overseas rental income should form part of her taxable income estimate.

Note: if the customer needs help converting the target foreign income to Australian dollars, the Service Officer can use the exchange rate as at 1 July of the relevant financial year.

Jess contacts Services Australia to update her income estimate for the current financial year. Her husband David is not an Australian resident and is currently working overseas as an employee. Jess has confirmed with the ATO that David's income is not taxable as he is not an Australian resident and the income was received outside of Australia.

Given David's overseas income is not taxable, for FTB purposes it is to be recorded in Jess' income estimate as Foreign Income.