EV 1052279653168currentnon-binding advice

Assessable income foreign pension

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Is the benefit you receive from Country X included in your assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?

2

No. Generally, subsection 6-5(2) of the ITAA 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources, whether in or out of Australia, during the income year. However, article X of the Country X Convention provides that social security payments by Country X to a resident of Australia shall only be taxable in Country X. Accordingly, the pension you receive is therefore not assessable income under section 6-5 of the ITAA 1997 as you are a resident of Australia. This ruling applies for the following period : Year ending 30 June 20XX The scheme commenced on: 30 June 20XX

3

You are an Australian resident for tax purposes. Your spouse passed away whilst rendering services in Organisation A. On XX/XX/20XX, you were granted a pension from Organisation B. On XX/XX/20XX, you commenced receiving these payments. The pension is paid to you monthly in the currency of Country X.

4

Income Tax Assessment Act 1997 section 6-5 International Tax Agreements Act 1953