Private ruling: Pension income
Date of advice: 8 January 2021
Published: March 2021
Ruling period: Year ended 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2019

Ruling: Q1: Is your Australian pension assessable in Australia under the Double Tax Agreement? | A1: No. Australia has a tax treaty with Country Z. The Country Z agreement operates to avoid the double taxation of income received by Australian and Country Z residents. Article XX of the Country Z Convention deals with the tax treatment of pensions and annuities received by the residents of Australia and Country Z. Paragraph (1) of Article XX provides that an Australian sourced pension paid to an individual who is a resident of Country Z shall not be taxable in Australia. | Q2: Are you required to lodge an Australian tax return for the future years? | A2: No. While you do not have any assessable income to declare in Australia you do not need to lodge a tax return unless tax has been withheld by your superannuation provider.

Relevant facts and circumstances: You lived in Australia for XX years. You did not become an Australian citizen. You returned to the Country Z in 19XX to live there permanently. You have been a resident and citizen of Country Z since 19XX. Your only Australian source income is a pension.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | International Tax Agreements Act 1953 section 4