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Edited version of private advice
Authorisation Number: 1052398283773
Date of advice: 21 May 2025
Ruling
Subject: Pension income
Question 1
Does Australia have the taxing rights on your pensions under the Double Tax Agreement between Australia and Country Z?
Answer 1
No.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You are not a resident of Australia for taxation purposes.
You are currently not a citizen of Country Z.
You are a Resident of Country Z for taxation purposes.
You have permanently moved to Country Z.
You are currently receiving pensions from multiple sources.
You are currently paying tax on your pensions in Country Z as per the DTA between Australia and Country Z.
You are currently not contributing to your Super Fund A as you are no longer eligible to contribute.
Relevant legislative provisions
International Tax Agreements Act 1953 section 4
International Tax Agreements Act 1953 section 5
Income Tax Assessment Act 1997 section 6-5
Reasons for decision
Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of an Australian resident includes the ordinary income they derived directly or indirectly from all sources, whether in or out of Australia, during the income year.
In determining your liability to pay tax in Australia it is necessary to consider any applicable double tax agreements. Sections 4 and 5 of the International Tax Agreements Act 1953 (Agreements Act) incorporate that Act with the ITAA 1936 and the ITAA 1997 and provide that the provisions of a double tax agreement have the force of law.
The Convention between the Government of Australia and Country Z for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance operates to avoid the double taxation of income received by residents of one or both countries.
Articles in the DTA between Australia and Country Z considers pensions and annuities
In accordance with the DTA, Country Z has the taxing rights on the pensions.
These pensions are not taxable in Australia as per the article XX of the convention.