Private ruling: Taxation of pension income
Date of advice: 21 May 2019
Published: July 2019
Ruling period: Year ending 30 June 2022 | Year ending 30 June 2023
Date scheme commenced: 1 July 2021

Ruling: Q1: Is the payment of a transition to retirement income stream or account based pension by a complying Australian superannuation fund to the taxpayer, after the attainment of preservation age and before the age of sixty, exempt from income tax in Australia? | A1: Yes. The income stream or pension is exempt from taxation in Australia as it is accepted that it will be assessable only in Country Z under the relevant double tax agreement. | Q2: Is the complying Australian superannuation fund in these circumstances required to deduct Pay As You Go Withholding (PAYGW)? | A2: No. Section 12-1 of the Taxation Administration Act 1953 (TAA 1953) provides exemptions to the withholding of tax where the whole of the payment is exempt from income tax. Having considered your circumstances and the relevant factors it has been determined that there is no requirement to withhold from the superannuation income stream or annuity.

Relevant facts and circumstances: You were born in Country Z. In 19XX you became an Australian citizen and subsequently became an Australian resident. You moved back to Country Z in mid 20XX and are now a resident of Country Z for tax purposes. You will reach the preservation age of fifty eight for superannuation in 20XX. You have multiple superannuation funds. The funds are not related to government service in either Country Z or Australia. You intend to commence either a transition to retirement income stream or an account based pension after attaining your preservation age.

Relevant legislative provisions: Taxation Administration Act 1953 section 12-1