Private ruling: Assessability of income
Published: August 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 01 July 2013

Ruling: Questions and answers: | 1. Is the payment you receive from Country Y for your relative assessable income to you in Australia? | No | 2. Is the payment you receive on behalf of your relative from Country Y assessable income in Australia? | No

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 in receipt of regular public payments from Country Y for your relatives. You moved from Country Y to live in Australia in xxxx. You will continue to receive the payments until your relative reaches a certain age.

Relevant legislative provisions: Section 6-5 of the Income Tax Assessment Act 1997

Reasons for decision: Summary: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year. You are an Australia resident who is in receipt of payments from Country Y: In determining your liability to pay tax in Australia it is necessary to consider not only the domestic income tax laws but also any applicable double tax agreements. Section 4 of the International Tax Agreements Act 1953 (Agreements Act) incorporates that Act with the Income Tax Assessment Act 1936 (ITAA 1936) and the ITAA 1997 so that all three Acts are read as one. The Agreements Act overrides both the ITAA 1936 and ITAA 1997 where there are inconsistent provisions (except in some limited situations). Section 5 of the Agreements Act states that, subject to the provisions of the Agreements Act, any provision in an Agreement listed in section 5 has the force of law. The agreement means that you can only be assessed in Country Y on the public payments for your relatives.