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Edited version of private advice
Authorisation Number: 1051705735585
Date of advice: 03 August 2020
Ruling
Subject: Foreign pension
Question
Is your Country Z pension assessable in Australia?
Answer
No. The Agreement between Australia and Country Z for the elimination of double taxation with respect to taxes on income and on capital and the prevention of fiscal evasion and avoidance in an Article states; a pension paid by, or out of funds created by, a Contracting State or any political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
Therefore, your Country Z pension is not assessable in Australia.
This ruling applies for the following period:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are a Country Z citizen.
You are living in Australia with your spouse.
You have a permanent resident visa for Australia.
You worked as a teacher in Country Z for approximately many years.
Some years ago you took a leave of absence from your position until you recently retired.
You were employed as a civil servant of the state.
You are receiving a Country Z pension because of your employment as a professional.
The pension is being taxed by the Country Z authorities.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(2)
International Tax Agreements Act 1953
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