DT2659 - Particular agreements: Australia: Employments

Both old and new Agreements follow the general principles in DT 1920 et seq.

This means that earnings from employment of an individual who goes to work in Australia would normally be exempt from Australian tax if he fulfils the conditions of Article 14(2) [12(2) in the old treaty] or Article 16 of the old treaty (teachers) applied.

The time limit in Article 14(2)(a) is 183 days in any twelve month period for 2003/4 onwards. Under the previous Agreement the limit was 183 days in the tax year.

Up to 17th March 1998, a foreign earnings deduction was available to UK residents who worked abroad and satisfied certain conditions. Under the previous agreement, earnings that qualified for a foreign earnings deduction of 100% or 25% in the UK were not exempted from Australian tax.

If 25% of such earnings are taxed in Australia, then in practice unilateral relief can be given for such tax against the United Kingdom tax charged on the remaining three-quarters.