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ATO Interpretative Decision

ATO ID 2002/936 (Withdrawn)

Income Tax

Pensioner tax offset - taxpayer in receipt of foreign pension
FOI status: may be released
  • This ATO ID is withdrawn from the database as it is a straight application of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the taxpayer eligible for a pensioner tax offset under section 160AAA of the Income Tax Assessment Act 1936 ('ITAA 1936') where they are in receipt of only a foreign pension?

Decision

No. The taxpayer is not eligible for a pensioner tax offset under section 160AAA of the ITAA 1936 where they are in receipt of only a foreign pension as it is not a rebatable pension.

Facts

The taxpayer is a resident of Australia.

The taxpayer receives a foreign sourced pension.

The taxpayer is not in receipt of an Australian sourced pension.

Reasons for Decision

Subsection 160AAA(2) of the ITAA 1936 provides that if the assessable income of a taxpayer includes an amount of 'rebatable pension', they are entitled to a tax offset.

A 'rebatable pension' is defined in subsection 160AAA(1) of the ITAA 1936 as being a pension, allowance or benefit under:

•
the Veterans' Entitlements Act 1986 (VEA), other than Part VII of that Act; or
•
the Social Security Act 1991 (SSA)

As the taxpayer's assessable income does not include a pension payable under either the VEA or the SSA, the taxpayer is not in receipt of a 'rebatable pension'. Accordingly the taxpayer is not entitled to a pensioner tax offset under section 160AAA of the ITAA 1936.

Date of decision:  25 June 2002

Year of income:  Year ended 30 June 2001

Legislative References:
Income Tax Assessment Act 1936
   section 160AAA
   subsection 160AAA(1)
   subsection 160AAA(2)

Keywords
Foreign pension income
Pensioner rebates

Business Line:  Small Business/Individual Taxpayers

Date of publication:  30 September 2002

ISSN: 1445-2782

history
  Date: Version:
  25 June 2002 Original statement
You are here 4 July 2008 Archived

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