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Edited version of private advice
Authorisation Number: 1051844201511
Date of advice: 31 May 2021
Ruling
Subject: Employment income
Question
Are the workers compensation payments and the employment termination payment received by you in the XXX and XXX income years assessable income in Australia?
Answer
No.
Based on the information provided to the Commissioner the payments are not assessable income in Australia as you are a non-resident of Australia for taxation purposes.
The payments are not Australian sourced income as you have been living and working in Country Y for a number of years. The payments relate to the period you were working in Country Y.
The Australia and Country Y DTA gives the taxing rights on the income to Country Y.
In order for a taxpayer to have tax refunded that has been withheld by Australia, they are required to lodge an Australian tax return.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You are a non-resident of Australia for taxation purposes.
You have worked for the one employer for a number of years.
You relocated overseas and continued working for the employer for many years.
You received payments in relation to your employment overseas in the XXX and the XXX income years.
Tax was withheld from these payments in Australia.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5