I won't claim the credit for this as I saw it on another forum, however I thought it might be something a lot of people would interested in.
Now it doesn't say whether it is just PR or temp as well, I am currently looking in to this, I would guess though that it only applies to PR as temp would already benefit from not having to declare income outside of OZ anyway.
Here it is:
It is all change from the 1st of July, 2008: losses arising on the rental of property located outside Australia can now be offset against Australian assessable income.
This means that taxpayers can effectively "negatively gear" in respect of property located outside Australia.
The change will be particularly good news to migrants from countries such as the UK who have been unable to sell their main residence due to the recent problems in the housing market. They can now plan to rent out their property and to claim a tax deduction for any losses they sustain, reducing their Australian tax bill as a result.
This change commences from the start of the current Australian tax year (the year starting on the 1st of July, 2008).
In addition, taxpayers who have sustained losses on rental property in the last 5 Australian tax years while resident in Australia and which have not yet been claimed as a deduction can contemplate claiming a tax deduction when completing their 2009 Australian Tax Return.
The same principle applies to losses arising on other passive sources of income outside Australia, including interest income, where borrowing and related expenses have been incurred in making the investment from which the interest income derives.
Pretty sure that this will be of interest to some of you.