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Edited version of private advice
Authorisation Number: 1052279653168
Date of advice: 22 July 2024
Ruling
Subject: Assessable income foreign pension
Question
Is the benefit you receive from Country X included in your assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No.
Generally, subsection 6-5(2) of the ITAA 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources, whether in or out of Australia, during the income year.
However, article X of the Country X Convention provides that social security payments by Country X to a resident of Australia shall only be taxable in Country X.
Accordingly, the pension you receive is therefore not assessable income under section 6-5 of the ITAA 1997 as you are a resident of Australia.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
30 June 20XX
Relevant facts and circumstances
You are an Australian resident for tax purposes.
Your spouse passed away whilst rendering services in Organisation A.
On XX/XX/20XX, you were granted a pension from Organisation B.
On XX/XX/20XX, you commenced receiving these payments.
The pension is paid to you monthly in the currency of Country X.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
International Tax Agreements Act 1953
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