Australia requests tax exemptions of varying forms from each of its development partners. These tax exemptions are set out in umbrella aid agreements between Australia and partner governments. They include exemptions from taxes on income received by Australian personnel or Australian project personnel working on Australian Government funded activities in the host country; value added taxes (VAT) on project supplies or professional and technical material procured in-country or from overseas; customs duties and other charges on supplies and material imported from overseas; and customs duties and other charges on motor vehicles and personal and household effects.
Most agreements also contain an ‘equality of treatment’ clause whereby Australian personnel are entitled to the same rights and entitlements as the personnel of other donors, including multilateral organisations.