Private ruling: Assessable income - foreign pension
Date of advice: 15 August 2023
Published: 3 October 2023
Date scheme commenced: X July 20XX

Ruling: Q1: Is the monthly disability pension you receive assessable in Australia under section 6-5 of the Income Tax Assessment Act 1997 ? | A1: No. Article X of the Double Tax Agreement between Australia and Country B states that governmental salaries, wages and other similar remunerations including pensions paid from funds of one of the Contracting States, of a state or other political subdivision thereof or of an agency or authority of any of the foregoing for labour or personal services performed as an employee of any of the above in the discharge of governmental functions to a citizen of that State shall be exempt from tax by the other Contracting State. This private ruling applies for the following period: Year ending X June 20XX The scheme commenced on: X July 20XX

Relevant facts and circumstances: You were a member of the armed forces for Country B. You commenced active duty in 20XX. You were injured in active service, causing permanent disabilities, and were subsequently discharged in 20XX. As a result, you are in receipt of a monthly pension from the Veterans Affairs Department of Country B You are a citizen of Country B but are also an Australian resident for tax purposes. There is a Double Tax Agreement between Australia and Country B.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(2) | International Tax Agreements Act 1953