Administered by: Austrade and the Australian Taxation Office
The income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 can help increase the competitiveness of Australian companies bidding for international projects.
Section 23AF exempts from Australian income tax the earnings of Australian individuals while they are working overseas on approved projects for more than 90 days.
The purpose of the tax exemption is to enable Australian companies’ project costs to be internationally competitive with foreign companies that may operate under similar tax concessions.
The exemption typically applies to projects in countries where:
- employment income is not subject to income tax (such as in a number of Middle Eastern countries) or
- foreign workers do not pay income tax because the project is funded by an international development agency (such as the World Bank).
Austrade assesses whether a project is eligible for ‘approved project’ status under section 23AF, while the Australian Taxation Office—which administers the income tax system—must be satisfied that all the requirements for an exemption have been met.
Click here for more information on eligibility requirements and the application process.
For more information on Austrade’s assistance to Australian exporters, visit the Austrade website.
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