Private ruling: Foreign pension
Date of advice: 14 April 2022
Published: July 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the Country Z pension assessable in Australia? | A1: No. Article 18 of the Double Tax Agreement (DTA) between Country Z and Australia states: Social security payments and other public pensions paid by one of the Contracting States to an individual who is a resident of the other Contracting State or a citizen of Country Z shall be taxable only in the first-mentioned State. Therefore, as your pension is paid by Country Z, they have the taxing rights on the pension and it is not assessable in Australia.

Relevant facts and circumstances: You retired in a prior year. You subsequently became eligible to receive the Country Z pension later in the same year. You are a dual resident of Country Z and Australia. You have received a number of payments. The pension is not being received in relation to government service.

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