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Edited version of private advice
Authorisation Number: 1051794531100
Date of advice: 08 January 2021
Ruling
Subject: Pension income
Question 1
Is your Australian pension assessable in Australia under the Double Tax Agreement?
Answer
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.
Question 2
Are you required to lodge an Australian tax return for the future years?
Answer
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.
This ruling applies for the following periods:
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
The scheme commences on:
1 July 2019
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