| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1012769019765
Ruling
Subject: Foreign pension
Question and answer
Is the superannuation lump sum transferred to Australia from a country A fund assessable in Australia?
Yes.
This ruling applies for the following periods:
Year ended 30 June 2014
The scheme commenced on:
1 July 2013
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a resident of Australia for taxation purposes.
You have been living in Australia over 20 years.
A lump sum superannuation payment was transferred to you in Australia from a country Y fund.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Subsection 305-60(1).
Reasons for decision
When you transfer your superannuation lump sum from the country Y pension fund to Australia, the amount will be taxable in Australia. This is the case even though the superannuation lump sum from your country Y pension fund is tax-free in country Y
However, there are circumstances where the lump sum may be tax-free in Australia.
A lump sum amount that you receive may be tax-free if you receive it within 6 months of being an Australian resident.
Subsection 305-60(1) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that a superannuation lump sum payment that you receive is not assessable income and is not exempt income if:
a. you receive it within 6 months of becoming an Australian resident; and
b. it relates only to a period:
i. when you were not an Australian resident; or
ii starting after you became an Australian resident and ending before you receive the payment; and
c. it does not exceed the amount in the fund that was vested in you when you received the payment.
Accordingly, you do not satisfy the criteria in subsection 305-60(1) of the ITAA 1997, as you have been a resident of Australia for taxation purposes since 19XX and you received the lump sum payment in the particular income year which is not within 6 months of you becoming a resident of Australia.
The superannuation lump sum amount that you transferred from the country Y pension fund in Australia will be subject to tax and will be taxed at your marginal tax rate.
Please note:
There is no other provision of the law which would exempt the lump sum payment from being taxed in Australia.