Sourcing of income: Is your employee’s income considered Australian sourced?

This two-part series explores recently updated guidance for employers who may have staff experiencing prolonged displacement in Australia due to the COVID-19 pandemic.

The Australian Taxation Office (ATO) says the source of employment income for displaced employees physically working in Australia for a foreign employer should be carefully examined, as in most instances, the income will be considered Australian sourced. The ATO has indicated that it would consider salary to have an Australian source if: the employee has chosen to stay in Australia, despite being able to leave; or the employee has agreed with their employer that Australia can be their us...

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Authors: Daniel Hodgson, Terry Hoban,

Published Date: 03 September 2021