Private ruling: superannuation pension
Published: February 2012
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017
Date scheme commenced: 1 July 2012

Ruling: Q1: Is your superannuation pension assessable in Australia? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(3) | Income Tax Assessment Act 1997 Subsection 6-10(5) | International Tax Agreements Act 1953

Reasons for decision: Summary: Subsection 6-5(3) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a foreign resident includes all the ordinary income derived directly or indirectly from all Australian sources during the income year. The assessable income of a foreign resident also includes your statutory income from all Australian sources (subsection 6-10(5) of the ITAA 1997). Pensions are generally included as assessable income. However, in determining liability to tax on Australian sourced income received by a foreign resident, it is necessary to consider not only the income tax laws but also any applicable double tax agreements contained in the International Tax Agreements Act 1953 (the Agreements Act). Section 4 of the Agreements Act incorporates that Act with the ITAA 1997 so that those Acts are read as one. Subsection 4(2) of the Agreements Act provides that the Agreements Act overrides the ITAA 1997 where there are inconsistent provisions (apart from Australia's general anti-avoidance rules and certain provisions dealing with limitations of tax credits). A schedule to the Agreements Act contains the double tax agreement between Australia and country C. The Agreement operates to avoid the double taxation of income received by Australian and country C residents. The relevant article of the Agreement provides that pensions (including government pensions) and annuities paid to a resident of country C shall be taxable only in country C. Therefore your pension is not taxable in Australia. That is, you are not liable to Australian income tax on your pension.

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. | Relevant facts: You retired from your Australian employment a few years ago. | You moved overseas to live. You are a permanent resident in country C. | You receive a pension from Australia. | You are not an Australian resident for taxation purposes.