Income tax liabilities are primarily regulated by the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth). These Acts operate together and provide for situations where international tax dealings arise, including foreign residents with Australian source income, Australian residents with foreign source income, as well as transfer pricing and thin capitalisation anti-avoidance regimes.
Double tax agreements (DTAs) to which Australia is a party may override the provisions of the domestic legislation (s4(1) of the International Tax Agreements Act 1953 (Cth)).
Australia's DTAs and TIEAs are bilateral agreements between Australia and another country under which Australia undertakes to apply its taxation laws in accordance with the terms of the agreement it has negotiated. Australia meets its obligations under these agreements by incorporating them directly into its domestic law. Australia's DTAs and TIEAs are given the force of law domestically through s4(1) of the International Tax Agreements Act 1953 (Cth).
Note: Prior to the enactment of the International Tax Agreements Amendment Act (No. 1) 2011 (Cth), DTAs and TIEAs were contained in schedules to the International Tax Agreements Act 1953. The amending Act removed all of these agreements from the schedules to the Act, with the exception of the 'Taipei Agreement', which is a document of less than treaty status, and remains in the Act as Schedule 1. Following the removal of the schedules by the amending Act, the official text of DTAs and TIEAs are contained in the Australian Treaty Series.
The US Foreign Account Tax Compliance Act (FATCA) (26 USC §§ 1471-1474) was enacted in March 2010 to improve compliance with US tax laws. FATCA imposes certain due diligence and reporting obligations on foreign financial institutions. In 2014 Australia and the US signed an intergovernmental agreement to implement FATCA.
FATCA was incorporated into Australian domestic legislation in 2014 by the Tax Laws Amendment (Implementation of the FATCA Agreement) Act 2014 (Cth), which amended the Taxation Administration Act 1953 (Cth) to include a new Division 396 - FATCA - in Schedule 1.
In 2012 Australia became a signatory to the Convention on Mutual Administrative Assistance in Tax Matters, a multilateral agreement designed to promote international co-operation for a better operation of national tax laws, while respecting the fundamental rights of taxpayers. The Convention provides for all possible forms of administrative co-operation between the parties in the assessment and collection of taxes, in particular with a view to combating tax avoidance and evasion.
The Convention has been incorporated into Australian domestic law by the Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016 (Cth), which amends Schedule 1 of the Taxation Administration Act 1953 (Cth) by inserting a new Subdivision, 'Subdivision 396-C - Common Reporting Standard' into 'Part 5-25 - Record-keeping and other obligations of taxpayers'. More on the Convention and the Australian adoption of it in the EM that accompanied the Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2015 (Cth).
Use the Australian Treasury Tax Treaties website to see the Australian domestic legislation that implements other international agreements, such as Estate Gift Tax Treaties and East Timor Agreements.
The Australian federal tax system is administered and enforced by the Australian Taxation Office (ATO). The ATO regularly issues authoritative interpretative guidance and rulings on tax-related legislative provisions. More on guidance (including interpretative decisions) and rulings is available on the ATO Advice and Guidance website.
Detailed information about Australian double tax agreements (DTAs) is available in ATO Taxation Ruling TR 2001/13: Income tax: Interpreting Australia's Double Tax Agreements.
For ATO rulings, determinations, guidelines, interpretative decisions, decision impact statements etc on all international tax matters, use the ATO's Legal Database. You can search this database, or browse it, for example, select Browse > Browse All > Topic > International Issues > Double Tax Agreements.