Guidance on payments to government employees posted overseas

December 17, 2020

The ATO has finalised guidance on the tax treatment for certain payments or benefits provided to Australian Government employees posted overseas.

Taxation Determination TD 2020/8 sets out the fringe benefits tax and income tax treatment of specified payments or benefits provided by an Australian Government Agency to an employee regarding their overseas posting. For the determination to apply, the employee must continue to be paid a salary and other entitlements by the Agency, stay in settled accommodation provided by the Agency and remain a resident of Australia for the duration of an overseas posting of more than 6 months.

The determination applies to years of income commencing both before and after 16 December 2020. It was previously issued as Draft Taxation Determination TD 2020/D2.