Private ruling: Temporary resident - lump sum payment received from overseas
Date of advice: 31 October 2025
Published: 15 December 2025
Ruling period: Year ending 30 June 20YY

Ruling: Q1: Are you a temporary resident for tax purposes? | A1: Yes. | Q2: If the answer to question 1 is yes, are the applicable fund earnings resulting from a lump sum payment as assessed in accordance with section 305-70 of the Income Tax Assessment Act 1997 (ITAA 1997), deemed non-assessable non-exempt income in accordance with section 768-910 of the ITAA 1997? | A2: Yes.

Relevant facts and circumstances: You and your spouse are citizens of Country A, and you have been a resident of Australia for taxation purposes. You entered Australia as a citizen of Country A, holding a Subclass 444 Special Category Visa (SCV); this visa is a temporary visa granted under the Migration Act 1958 and is not a protected visa. Neither you nor your spouse are Australian Citizens or Permanent Australian Residents. You hold an account with a Country B Fund (Country B Fund). You intend on transferring a lump sum amount of approximately $X from your account with the Country B Fund and transferring this amount to an Australian pension fund (QROPS) which is approved by the Country B tax authorities. Assumption The Country B Fund meets the definition of a foreign super fund under subsection 995-1(1) of the ITAA 1997 and subsection 295-95(2) of the ITAA 1997.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(2) | Income Tax Assessment Act 1997 subsection 6-10(4) | Income Tax Assessment Act 1997 section 305-70 | Income Tax Assessment Act 1997 section 768-10 | Income Tax Assessment Act 1997 subsection 768-10(1) | Income Tax Assessment Act 1997 subsection 995-1(1)

Reasons for decision: Detailed Reasoning - Temporary resident: If you are a resident of Australia for tax purposes and meet the requirements to be a temporary resident as defined in subsection 995-1(1) of the ITAA 1997, the temporary resident rules apply to you. You are a temporary resident if: • you hold a temporary visa granted under the Migration Act 1958 ; • you are not an Australian resident within the meaning of the Social Security Act 1991 ; and • your spouse (if applicable) is not an Australian resident within the meaning of the Social Security Act 1991 . The Migration Act 1958 provides that a temporary visa is a visa to travel to and remain in Australia: • during a specified period; • until a specified event happens; or • while the holder has a specified status. Temporary visas are distinguished from permanent visas which allow a person to remain in Australia indefinitely. Under the Social Security Act 1991 , an Australian resident is generally a person who resides in Australia and is either an Australian citizen or holds a permanent resident visa or a protected special category visa. In your case, you are not an Australian resident within the meaning of the Social Security Act 1991 as neither you nor your spouse are not an Australian citizen, the holder of a permanent visa, or a protected special category visa holder. In your case you are a temporary resident because: • you hold a temporary visa granted under the Migration Act 1958 • you are not an Australian resident within the meaning of the Social Security Act 1991, and • you do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991. • you do not hold a protected special category visa. | Detailed Reasoning - Assessability of lump sum withdrawal from the Country B pension fund: Subsections 6-5(2) and 6-10(4) of the ITAA 1997 provide that the assessable income of a resident taxpayer includes ordinary or statutory income derived directly or indirectly from all sources, whether in or out of Australia, during the income year. In view of the above, the effect of subsection 6-10(4) of the ITAA 1997 is that assessable income is not restricted to receipts which satisfy the concepts of ordinary income but also encompasses statutory income which may include one off amounts. Section 10-5 of the ITAA 1997 lists the provisions in respect of statutory income. Included in this list is section 305-70, which includes as assessable income the applicable fund earnings in relation to lump sum payments from foreign superannuation funds received more than six months after a taxpayer has become an Australian resident for tax purposes. It should be noted however, that subdivision 768-R of the ITAA 1997 provides tax relief for most foreign income derived by temporary residents of Australia. In particular, section 768-910 of the ITAA 1997 provides that: (a) ordinary income derived from a foreign source, excluding employment related income and capital gains on shares and rights acquired under employee share schemes; and (b) statutory income, other than a net capital gain, from a foreign source; represent non-assessable non-exempt income when derived by a temporary resident of Australia. | Detailed Reasoning - Application to your circumstances: With the Country B Fund meeting the definition of a foreign super fund under subsection 995-1(1) of the ITAA 1997 and subsection 295-95(2), you will be assessed on the applicable fund earnings resulting from any lump sum payment received from the Country B Fund under section 305-70. However, since you are considered to have been a temporary resident, any amounts you received from the Country B Fund during the period that you are a temporary resident of Australia , either in the form of: • lump sum payments which are assessed as applicable fund earnings under section 305-70 of the ITAA 1997; or • pension payments; are not assessable in Australia due to section 768-910 of the ITAA 1997.