As a retiree ( shortly age 66) ) do I have to pay tax on my UK state pension which will be approx 22K Aus dollars a year. I read somewhere that as long as your income for the year is less than 33K as a couple then no tax is payable.
At the same time I will be drawing down on my Pssap super of approx 4% a year - current balance is 735K.
Hi @ken woolard,
Not sure where you read income for the year is less than 33k as a couple then no tax is payable. Was this from an UK government site? I can't comment how it will be taxed in the UK.
If you are an Australian resident and received income from overseas you must show your assessable foreign income here, even if tax was taken out of the income by the UK.
You may be entitled to claim a deduction to reduce the taxable amount of the pension if it has a UPP or may be eligible to claim foreign income tax offset.
You can view this information under foreign pensions and annuities.
Let us know if you need further assistance.
Hi @ken woolard,
Not sure where you read income for the year is less than 33k as a couple then no tax is payable. Was this from an UK government site? I can't comment how it will be taxed in the UK.
If you are an Australian resident and received income from overseas you must show your assessable foreign income here, even if tax was taken out of the income by the UK.
You may be entitled to claim a deduction to reduce the taxable amount of the pension if it has a UPP or may be eligible to claim foreign income tax offset.
You can view this information under foreign pensions and annuities.
Let us know if you need further assistance.
Many thanks for reply.
not 100% sure where I got the info about paying no tax on 33K. Most likely got my google searches mixed up.
After reading the link you provided I understand things a little better but not sure if I can claim a ‘Foreign income tax offset’.
As I mentioned my pension from the UK is a state pension category A which says I can claim a UPP of 8% of my annual pension which say is $1600 of a $20000 annual pension meaning I pay tax on $18400.
I have two questions:-
Thanks for your patience looking at my issue. I tend to get easily confused dealing with tax issues.
rgds,
Ken
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