Foreign Income & FITO Calculator
Your Income Details
Enter your income from both Australian and foreign sources for the 2026-27 tax year.
How the Foreign Income Tax Offset (FITO) Protects You
The primary goal of FITO is to prevent double taxation. As an Australian resident, you're taxed on your worldwide income. FITO provides a credit for foreign tax you've already paid, ensuring fairness.
Declare Worldwide Income
You must declare all income, including what you earned overseas, on your Australian tax return.
Claim a Credit
FITO reduces your Australian tax liability by the amount of foreign tax paid, up to the amount of Australian tax that would be payable on that income.
Avoid Double Taxation
The offset ensures you don't pay tax twice on the same dollar earned.
Frequently Asked Questions
Understanding Worldwide Income Obligations
If you are an Australian resident for tax purposes, you are generally taxed on your income from all sources worldwide. This includes employment income, rental earnings from overseas property, and dividends from foreign investments.
The Australian Taxation Office (ATO) provides the Foreign Income Tax Offset (FITO) to ensure you aren't taxed twice on the same dollar. Our calculator models this offset by comparing your foreign tax paid against the Australian tax that would be payable on that specific portion of income.
The $1,000 Limit
If your total FITO claim for the year is $1,000 or less, you don't need to calculate your "offset limit". You can simply claim the amount of foreign tax you paid.
Exchange Rates
All foreign income must be converted to Australian Dollars. You must use the ATO's official average rates or the rate at the time of transaction.
Quick Eligibility Check
- ✓You paid foreign tax on income earned overseas.
- ✓The income is also taxable in Australia.
- ✓You are an Australian resident for tax purposes.
Related International Tools
Foreign income is taxed alongside your domestic earnings. Use these tools to see your full financial position.