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Edited version of your written advice
Authorisation Number: 1012689616408
Ruling
Subject: Overseas pension
Question
Is the Social Security benefit received from an overseas country included in your assessable income in Australia?
Answer
No
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts and circumstances
You are an Australian resident for income tax purposes.
You receive a social security pension from an overseas country.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
International Tax Agreements Act 1953
Convention between the Government of Australia and the Government of the an overseas country for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income Articles 18 and 19
Reasons for decision
Social Security income
ATO 200X/XXX explains Paragraph 18(2) of the double tax agreement between the overseas country and Australia (the DTA) provides that Social Security payments by the overseas country to a resident of Australia shall only be taxed in the overseas country.
The Social Security benefit you receive will therefore not be assessable in Australia but will remain subject to tax in the overseas country.