Private ruling: International income - foreign pensions
Date of advice: 17 August 2023
Published: 3 October 2023
Ruling period: Income year ended 30 June 20XX | Income year ending 30 June 20XX | Income year ending 30 June 20XX | Income year ending 30 June 20XX | Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: A1: Therefore, your Pension received from Country A will not be assessable under subsection 6-5(2) of the ITAA 1997.

Relevant facts and circumstances: You are a resident of Australia. You were medically discharged from military services in Country A and received a pension from Country A in relation to your services ( the Pension ). Your disability was accepted by a government department in Country A as being attributable to your service, with the Pension being exempt from taxation in Country A. You have lodged several previous private ruling applications for earlier income years, with the ruling decisions outlining that the Pension was not assessable income. You continued to receive the Pension under the same conditions after the last ruling decision was issued until the present time, and for the purposes of this ruling will continue to receive the Pension under the same conditions until the end of the ruling period for this ruling.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(2) | Income Tax Assessment Act 1997 subsection 6-15(2) | Income Tax Assessment Act 1997 section 11-5 | Income Tax Assessment Act 1997 section 53-10 | Income Tax Assessment Act 1997 section 52-65 | Income Tax Assessment Act 1936 paragraph 23AD(3)(c)


Subject: International income - foreign pensions: Question: Is the Pension you receive from Country A assessable income? | Answer: No. The payments you receive in relation to the Pension meet the principles contained in Taxation Ruling IT 2586 and satisfy the requirements for section 53-10 of the Income Tax Assessment Act 1997 (ITAA 1997) to apply to make the payments exempt from income tax.