Private ruling: Assessability of pension income
Date of advice: 29 April 2021
Published: July 2021
Ruling period: Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024 | Year ending 30 June 2025
Date scheme commenced: 1 July 2021

Ruling: Q1: Is your government Retirement and Death Benefit spouse's benefit assessable in Australia? | A1: No. The tax treaty between Australia and Country Y contains articles which specifically deals with the taxation of pensions and annuities income. These articles provides that pensions paid to an individual who is a resident of Country Y, shall be taxed only in the Country Y. Therefore, as you are a resident of Country Y, the article of the tax treaty will apply and the pension you receive will not be taxable income in Australia and not assessable under section 6-5(3) of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You are a foreign resident for tax purposes. You are a Country Y citizen who resides in Country Y. Your spouse was an employed by the Australian government. You have been receiving government spouse's benefits since your spouse's death a number of years ago.

Relevant legislative provisions: Taxation Administration Act 1953 Section Sch1-12-80 | Income Tax Assessment Act 1997 Subsection 6-5(3) | International Tax Agreements Act 1953