1052157750257 | Legal database

Disclaimer
You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1052157750257

Date of advice: 17 August 2023

Ruling

Subject: International income - foreign pensions

Question: Is the Pension you receive from Country A assessable income?

Answer: No. The payments you receive in relation to the Pension meet the principles contained in Taxation Ruling IT 2586 and satisfy the requirements for section 53-10 of the Income Tax Assessment Act 1997 (ITAA 1997) to apply to make the payments exempt from income tax.

Therefore, your Pension received from Country A will not be assessable under subsection 6-5(2) of the ITAA 1997.

This ruling applies for the following periods:

Income year ended 30 June 20XX

Income year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are a resident of Australia.

You were medically discharged from military services in Country A and received a pension from Country A in relation to your services (the Pension).

Your disability was accepted by a government department in Country A as being attributable to your service, with the Pension being exempt from taxation in Country A.

You have lodged several previous private ruling applications for earlier income years, with the ruling decisions outlining that the Pension was not assessable income.

You continued to receive the Pension under the same conditions after the last ruling decision was issued until the present time, and for the purposes of this ruling will continue to receive the Pension under the same conditions until the end of the ruling period for this ruling.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 6-5(2)

Income Tax Assessment Act 1997 subsection 6-15(2)

Income Tax Assessment Act 1997 section 11-5

Income Tax Assessment Act 1997 section 53-10

Income Tax Assessment Act 1997 section 52-65

Income Tax Assessment Act 1936 paragraph 23AD(3)(c)

Copyright notice

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).