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Edited version of private advice
Authorisation Number: 1052156600932
Date of advice: 15 August 2023
Ruling
Subject: Assessable income - foreign pension
Question
Is the monthly disability pension you receive assessable in Australia under section 6-5 of the Income Tax Assessment Act 1997?
Answer
No. Article X of the Double Tax Agreement between Australia and Country B states that governmental salaries, wages and other similar remunerations including pensions paid from funds of one of the Contracting States, of a state or other political subdivision thereof or of an agency or authority of any of the foregoing for labour or personal services performed as an employee of any of the above in the discharge of governmental functions to a citizen of that State shall be exempt from tax by the other Contracting State.
This private ruling applies for the following period:
Year ending X June 20XX
The scheme commenced on:
X July 20XX
Relevant facts and circumstances
You were a member of the armed forces for Country B.
You commenced active duty in 20XX.
You were injured in active service, causing permanent disabilities, and were subsequently discharged in 20XX.
As a result, you are in receipt of a monthly pension from the Veterans Affairs Department of Country B
You are a citizen of Country B but are also an Australian resident for tax purposes.
There is a Double Tax Agreement between Australia and Country B.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(2)
International Tax Agreements Act 1953
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