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Edited version of your private ruling
Authorisation Number: 1012440209229
Ruling
Subject: Foreign Income
Question and answer
Is your foreign insurance premium taxable in Australia?
No.
This ruling applies for the following periods:
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
Year ending 30 June 2016
The scheme commenced on
1 July 2012
Relevant facts and circumstances
You have an Australian Spouse Visa.
You were not an Australian resident in 20YY.
You received a life insurance payment from a Country X insurance company in 20YY.
You intend to transfer the remaining cash from this payment into Australia when you move here permanently in the relevant year.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Subsection 6-5(2).
Income Tax Assessment Act 1997 Subsection 6-5(3).
Reasons for decision
Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year.
Subsection 6-5(3) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that ordinary income derived by a non resident directly or indirectly from Australian sources, as well as other ordinary income included by a provision on a basis other than having an Australian source, is assessable.
In your case, you received an insurance payment from a Country X insurance company in 20YY when you were not a resident of Australia for tax purposes. Therefore, this amount is not assessable in Australia.
There are, no tax consequences associated with the transfer of capital from an overseas bank account to an Australian bank account.