| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. 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 your private ruling
Authorisation Number: 1011935350654
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Foreign income - pension
Question:
Is your pension received from Country A assessable in Australia?
Answer: Yes
This ruling applies for the following periods:
Year ended 30 June 2009
Year ended 30 June 2010
Year ended 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
The scheme commenced on:
1 July 2008
Relevant facts
You are an Australian resident for taxation purposes.
You do not hold a temporary visa as you are a permanent resident of Australia.
You receive a pension from Country A.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10
International Tax Agreements Act 1953
Reasons for decision
Section 6-5 and section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997), provides that the assessable income of an Australian resident includes ordinary and statutory income they derived directly or indirectly from all sources, whether in or out of Australia during the income year.
Pensions have the character of ordinary income. Pension income is assessable in the year of receipt even though it may relate to a past or future income period
In determining liability to Australian tax on foreign sourced income received by a resident, it is necessary to consider not only the income tax laws but also any applicable tax treaty contained in the International Tax Agreements Act 1953 (the Agreements Act).
The Agreements Act contains the tax treaty between Australia and Country A and the Notes to the agreement (the Country A Convention). The Country A Convention operates to avoid the double taxation of income received by Australian and Country A residents.
An article of the Country A Convention provides that pensions (including government pensions) and annuities paid to a resident of Australia shall be taxable only in Australia.
In your case, as you are an Australian resident for tax purposes, the pension income that you receive from the Country A is included in your assessable income under section 6-5 of the ITAA 1997.