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Edited version of private advice
Authorisation Number: 1051833208528
Date of advice: 29 April 2021
Ruling
Subject: Assessability of pension income
Question
Is your government Retirement and Death Benefit spouse's benefit assessable in Australia?
Answer
No. The tax treaty between Australia and Country Y contains articles which specifically deals with the taxation of pensions and annuities income. These articles provides that pensions paid to an individual who is a resident of Country Y, shall be taxed only in the Country Y.
Therefore, as you are a resident of Country Y, the article of the tax treaty will apply and the pension you receive will not be taxable income in Australia and not assessable under section 6-5(3) of the Income Tax Assessment Act 1997.
This ruling applies for the following periods:
Year ending 30 June 2022
Year ending 30 June 2023
Year ending 30 June 2024
Year ending 30 June 2025
The scheme commences on:
1 July 2021
Relevant facts and circumstances
You are a foreign resident for tax purposes.
You are a Country Y citizen who resides in Country Y.
Your spouse was an employed by the Australian government.
You have been receiving government spouse's benefits since your spouse's death a number of years ago.
Relevant legislative provisions
Taxation Administration Act 1953 Section Sch1-12-80
Income Tax Assessment Act 1997 Subsection 6-5(3)
International Tax Agreements Act 1953
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