| Disclaimer 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 private advice
Authorisation Number: 1051705735585
Date of advice: 03 August 2020
Ruling
Subject: Foreign pension
Question
Is your Country Z pension assessable in Australia?
Answer
No. The Agreement between Australia and Country Z for the elimination of double taxation with respect to taxes on income and on capital and the prevention of fiscal evasion and avoidance in an Article states; a pension paid by, or out of funds created by, a Contracting State or any political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
Therefore, your Country Z pension is not assessable in Australia.
This ruling applies for the following period:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are a Country Z citizen.
You are living in Australia with your spouse.
You have a permanent resident visa for Australia.
You worked as a teacher in Country Z for approximately many years.
Some years ago you took a leave of absence from your position until you recently retired.
You were employed as a civil servant of the state.
You are receiving a Country Z pension because of your employment as a professional.
The pension is being taxed by the Country Z authorities.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(2)
International Tax Agreements Act 1953