Private ruling: Income - pension
Published: June 2012
Ruling period: Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: A1: No.

Relevant facts and circumstances: You are in receipt of an Australian government pension. You are a resident of Country X. You are a non-resident of Australia for income tax purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5. | International Tax Agreements Act 1953

Reasons for decision: Summary: Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a non-resident of Australia for taxation purposes, your assessable income includes only income from an Australian source. In accordance with Article 19 of the Country X double tax agreement, which is the agreement between Australia and Country X, pensions, including government pensions, are only taxable in the contracting state in which the taxpayer is a resident. Accordingly, as you are a resident of Country X you are not liable to pay tax on this pension in Australia under section 6-5 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Question and answer: Is the Australian government pension assessable in Australia?