Private ruling: Overseas pension
Published: September 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Is the Social Security benefit received from an overseas country included in your assessable income in Australia? | A1: No

Relevant facts and circumstances: You are an Australian resident for income tax purposes. You receive a social security pension from an overseas country.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | International Tax Agreements Act 1953 Convention between the Government of Australia and the Government of the an overseas country for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income Articles 18 and 19

Reasons for decision: Summary: Social Security income ATO 200X/XXX explains Paragraph 18(2) of the double tax agreement between the overseas country and Australia (the DTA) provides that Social Security payments by the overseas country to a resident of Australia shall only be taxed in the overseas country. The Social Security benefit you receive will therefore not be assessable in Australia but will remain subject to tax in the overseas country.