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Edited version of private advice
Authorisation Number: 1052076824107
Date of advice: 12 January 2023
Ruling
Subject: Foreign pension income
Question
Is the monthly disability compensation benefit you receive from XXX assessable in Australia?
Answer
No.
Article 19 of the tax treaty between Australia and XXX states that governmental salaries, wages and other similar remunerations including pensions paid from funds of one of the Contracting States, of a state or other political subdivision thereof or of an agency or authority of any of the foregoing for labor or personal services performed as an employee of any of the above in the discharge of governmental functions to a citizen of that State shall be exempt from tax by the other Contracting State.
Your XXX pension is exempt income and not assessable in Australia under Article 19 of XXX as you are a citizen of XX.
This ruling applies for the following periods:
Income Year ended 30 June 202X
Income Year ended 30 June 202X
Income Year ending 30 June 202X
Income Year ending 30 June 202X
Income Year ending 30 June 202X
The scheme commences on:
1 July 202X
Relevant facts and circumstances
You are a citizen of XXX.
You are an Australian resident for income tax purposes.
You sustained a service-connected injury while employed by XXX.
You receive a monthly benefit from XXX for your service-connected disabilities.
The benefit is not subject to tax in XXX.
There is a tax treaty between Australia and XXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 6-5(2)
International Tax Agreements Act 1953