Income Tax Act 2007 section 730

Qualifying new residents and remittance-basis users: "foreign" deemed income

Section 730 determines when deemed income arising under the transfer of assets abroad rules is treated as "foreign" and explains how that foreign deemed income is handled for individuals who used the remittance basis (up to 2024-25) or who qualify as new residents (from 2025-26 onwards).

• Deemed income arising under section 728 is classified as "foreign" to the extent that the underlying income of the person abroad would be relevant foreign income if it belonged to the individual
• For tax years up to and including 2024-25, where the remittance basis applied, the foreign deemed income is treated as the individual's relevant foreign income and is subject to the remittance basis rules
• From 2025-26 onwards, qualifying new residents may include the foreign deemed income in a foreign income relief claim as "qualifying foreign income"
• Special rules modify how the remittance basis charging provisions apply to this foreign deemed income, including the disapplication of certain conditions normally required for remittance basis treatment

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