Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If you are an Australian resident, your net exempt income is the amount by which your total * exempt income from all sources exceeds the total of:
(a) the losses and outgoings (except capital losses and outgoings) you incurred in deriving that exempt income; and
(b) any taxes payable outside Australia on that exempt income.
(2) If you are a foreign resident, your net exempt income is the amount (if any) by which the total of:
(a) your * exempt income * derived from sources in Australia; and
(b) your exempt income to which section 26AG (Certain film proceeds included in assessable income) of the Income Tax Assessment Act 1936 applies;
exceeds the total of:
(c) the losses and outgoings (except capital losses and outgoings) you incurred in deriving exempt income covered by paragraph (a) or (b); and
(d) any taxes payable outside Australia on income covered by paragraph (b).