Foreign Income – What Aussie Taxpayers Must Declare in 2025

Article by: Gotax Online Publication Division Sept 2025

ATO Wants to See It All

If you’re an Australian resident for tax purposes, the ATO doesn’t care if your money came from Sydney, Singapore, or Saturn — it’s all taxable. Even if you never transferred it into your Aussie bank account, you’ve still got to declare it.

This guide breaks down what counts as foreign income, how it’s taxed, what records to keep, and the traps that trip people up every year.

What Is Foreign Income?

Foreign income includes any money earned outside Australia, such as:

• Wages or salary from overseas jobs

• Business income from foreign clients or companies

• Pensions and annuities from overseas funds

• Super income streams from foreign superannuation

• Interest from overseas bank accounts

• Dividends from foreign shares

• Rental income from overseas property

• Royalties from intellectual property abroad

• Capital gains from selling foreign assets

• Freelance or consulting income earned offshore

• Attributed income from foreign trusts or companies

If it came from overseas and has your name on it, the ATO wants it on your tax return.

How Is Foreign Income Taxed?

1. Declare everything: Even if foreign tax has already been paid.

2. Claim the Foreign Income Tax Offset: Stops you from being double-taxed where eligible.

3. Convert into AUD: Use the ATO’s official daily, monthly, or annual exchange rates.

What Goes in Your Tax Return?

You’ll need to report:

• The full gross income (before foreign tax)

• Tax already paid overseas (if any)

• Type of income (wages, rent, dividends, etc.)

Each category has its own section in the tax return, so accuracy matters.

What Records Should You Keep?

• Payslips or summaries from foreign employers

• Overseas bank statements or tax assessments

• Proof of foreign tax paid

• Exchange rates used

• Records of foreign assets or investments

Keep everything for at least 5 years — the ATO does love its data matching.

Gotax Online FAQs

Do I declare overseas wages if I worked abroad only a few months?

Yes. If you’re an Australian tax resident, all worldwide income is reportable.

I paid tax overseas. Do I have to pay again in Australia?

You might, but you could claim the Foreign Income Tax Offset to reduce or eliminate double tax.

What if the income was never transferred into my Aussie account?

Still declare it. The ATO taxes worldwide income, not just what lands locally.

What if income is “attributed” to me from a foreign trust?

Bad news — you still declare it. Attributed income is taxable in your name.

How do I convert foreign income to AUD?

Use the ATO’s official exchange rate from the day you received the income (or annual rates if consistent).

I’ve got rental income from overseas property. How do I declare it?

Report the rent received and claim eligible rental property deductions (just like Aussie rentals).

Do I need to declare dividends from foreign shares?

Yes. Report them in the dividend section of your return, even if reinvested.

I sold shares overseas. Do I report capital gains?

Yes. Include the sale price, cost base, and apply CGT rules in AUD.

Are foreign pensions and annuities taxable?

Often yes. Many must be included in your assessable income.

What if I made a mistake in my foreign income reporting?

You can amend your tax return online — but do it quickly before the ATO catches it.

Common Mistakes People Make

• Forgetting to declare overseas bank interest

• Using the wrong exchange rate (ATO publishes the correct ones)

• Not reporting crypto income from offshore platforms

• Thinking “it’s tax-free overseas so I don’t need to declare” — wrong!

• Claiming the wrong deductions against foreign income

The End

If you’re an Australian tax resident, the ATO expects to see all your foreign income — taxable or not. The right reporting keeps you audit-safe and could save you tax via offsets.

Don’t gamble with foreign income. Let GoTax Online walk you through each type — clear, quick, and no jargon.

Start now: www.gotax.com.au/guest-user

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