Private ruling: Foreign pension income
Published: March 2015
Ruling period: Year ended 30 June 2014
Date scheme commenced: 30 October 2013

Ruling: Question and answer | Are the pensions you receive from country A assessable in Australia? | Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a permanent resident of Australia. You are a resident of Australia for tax purposes. You receive pensions from country A:

Relevant legislative provisions: Income Tax Assessment Act 1997 6-5(2), | Income Tax Assessment Act 1997 6-10, | International Tax agreements Act 1953

Reasons for decision: Summary: Section 6-5 and section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997), provides that the assessable income of an Australian resident includes ordinary and statutory income they derived directly or indirectly from all sources, whether in or out of Australia during the income year. In determining liability to Australian tax of foreign sourced income received by a resident, it is necessary to consider not only the income tax laws but also any applicable tax treaty contained in the International Tax Agreements Act 1953 (the Agreements Act). The country A Agreement operates to avoid the double taxation of income received by Australian and country A residents. The country A Agreement provides that pensions including government pensions and annuities paid to a resident of Australia shall be taxable only in Australia. In your case, as you are an Australian resident for tax purposes, the pensions that you receive from country A are included in your assessable income under section 6-5 of the ITAA 1997.