Hi @AusUs,
Your US city government retirement pension is likely assessable in Australia. Article 19 of the Australia-US tax treaty generally covers government service pensions, but the exemption typically applies only to payments made to individuals who are residents and nationals of the country making the payment (in this case, the US).
As an Australian permanent resident, you're likely an Australian resident for tax purposes. This means you need to declare your worldwide income, including foreign pensions. While your US social security is exempt under the treaty, your city government pension is different and may not qualify for the same exemption under Article 19.
The specific application of treaty articles depends on your individual circumstances, including your citizenship status and the nature of the pension. If you've paid tax on this pension in the US, you may be able to claim a foreign income tax offset in your Australian tax return to avoid double taxation.
You'll need to contact our tailored technical assistance team for specific guidance on your pension's tax treatment. The treaty rules around government pensions are complex and depend on your particular situation.
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