• Legal database
Legal database

Taxation Determination

TD 92/183

Income tax: as a result of the New Zealand government's decision to impose a tax on the income of superannuation funds from 1 April 1990, what amount should be included as assessable income by an Australian resident in receipt of a pension paid out of these funds?

This version is no longer current. Please follow this link to view the current version.

  • Please note that the PDF version is the authorised version of this ruling.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

FOI status:

may be releasedFOI number: I 1213588

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue.

1. An Australian resident who receives a New Zealand superannuation pension should include the total amount received as assessable income under subsection 25(1) of the Income Tax Assessment Act 1936 (ITAA). This amount should be included regardless of whether the pension is paid before or after 1 April 1990.

2. Under Article 13 of Schedule 4 of the Income Tax (International Agreements) Act 1953 , the pension is taxable in Australia. The fact that a New Zealand superannuation fund is liable to tax in New Zealand on its income does not affect the application of Article 13.

3. The amount of pension received is not grossed-up to take into account the tax paid by the New Zealand superannuation fund on its income. This is because subsection 6AC(1) of the ITAA does not apply, as an Australian resident who receives a New Zealand superannuation pension is not required to pay any foreign tax in relation to the pension. An Australian recipient of a pension paid by a New Zealand superannuation fund is not deemed by subsection 6AB(3) of the ITAA to have been personally liable for, and to have paid, the tax paid by the superannuation fund.

4. Furthermore, the Australian recipient is not entitled under section 160AF of the ITAA to a foreign tax credit for tax paid by the New Zealand superannuation fund.

Commissioner of Taxation
05/11/92

Previously issued as Draft TD 92/D104

References

ATO references:
NO Corr 1565/Chm

ISSN 1038 - 8982

Subject References:
foreign income;
grossing-up;
income,
New Zealand superannuation pension

Legislative References:
ITAA 6AB(3)
ITAA 6AC(1)
ITAA 25(1)(a)
ITAA 160AF
International Agreements Act 1953, Schedule 4, Article 13

TD 92/183 history
  Date: Version: Change:
You are here → 5 November 1992 Original ruling  
  10 March 2010 Withdrawn  

Back to top