The Federal Government's changes to the foreign employment income exemption will have ramifications for international assignees and employers. The impact of this change could be a higher overall tax cost for employees who remain Australian Tax residents whilst earning income in a foreign country, and additional costs and obligations for employers. In reviewing these changes, this event provided practical guidance on the impacts for both the employees and their employers, including:
- overview of the amendments to tax foreign employment income
- taxation costs for the employee, and utilising foreign tax credits
- additional obligations for employers, including on-costs
- tax effective packaging and income equalisation arrangements.