29 May 099 Submission on limiting the income tax exemption for Australians working overseasThe Taxation Institute has lodged with the Treasurer a submission on the proposal to limit the scope of s 23AG ITAA 1936, ie, the income tax exemption for Australians working overseas, solely to aid, charitable and certain government workers. The measure was announced in the 2009-2010 Budget.
The Taxation Institute has concerns with the proposal, including the following:
- It will add complexity to tax law and administration which will impact unfairly on ordinary Australians working overseas and Australian businesses.
- It will impose additional costs on Australian companies employing Australian residents overseas and therefore reduce their competitiveness.
- The proposals have been introduced without sufficient opportunity for consultation on the impact of the changes for ordinary Australians and Australian businesses competing internationally.
For a copy of the submission go here.