Do I pay Australian tax on a pension (and its initial lump sum) from a UK pension? For many years now I've received a Centrelink Carer's pension (allowance) as my only income. This means I haven't had to complete a tax return for all that time.
I will soon be getting a small pension income from former employment in the UK and am trying to find out whether the lump sum (or income) will be taxable. The answer may affect the size of lump sum I opt for.
UK pensions are taxable income for AUS tax residents.
A deduction of 8% is allowed against UK DSS pensions.
UK pensions are taxable income for AUS tax residents.
A deduction of 8% is allowed against UK DSS pensions.
Thanks, Bruce4Tax.
Is that 8% applied to "tax free" lump sums as well?
Also, do you happen to know where on the ATO website I could read about this?
When I rang ATO they said:
"no tax payable up to $18,000 (on the lump sum),
19% for each dollar over that,
15% on regular pension income".
But they didn't sound particularly certain... 🙄
Cheers, Ian
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