| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051496457354
Date of advice: 21 March 2019
Ruling
Subject: Lump sum payment - death benefit
Question
Is any part of the lump sum payment (death benefit) you received from the overseas pension scheme assessable income?
Answer
No.
Having considered your circumstances, we accept that the lump sum payment (death benefit) is inheritance you have received, which is not ordinary income or statutory income. As such the lump sum payment (death benefit) you have received is not assessable income, and it is not required to be included in your income tax return.
This ruling applies for the following period:
Year ending 30 June 2019
The scheme commenced on:
1 July 2018
Relevant facts and circumstances
You are an Australian resident for taxation purposes.
Your sibling died in Australia.
Prior to this, your sibling had been receiving a pension from an overseas pension scheme in Country Y.
The overseas pension scheme allowed a lump sum death benefit to be payable to you as the nominated person.
You submitted the death benefit claim form to the overseas pension scheme.
You received correspondence from the overseas pension scheme advising that your claim had been processed, along with a cheque for the amount payable in the currency of Country Y.
The amount was converted to Australian currency by your Australian Financial Institution, and the amount was then deposited to your Australian bank account.
The tax authorities in Country Y have not imposed any income tax on the lump sum death benefit you have received.
Whilst the lump sum payment formed part of your late sibling’s estate, the lump sum death benefit was paid directly to you rather that through the estate.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 section 6-15