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mickey8(Newbie)Newbie
22 July 2025

I am a UK citizen with a permanent resident visa for Australia. I believe I am considered to be a dual resident for tax purposes by virtue of staying more than 183 days in the UK per year, a few months in Australia and the rest travelling elsewhere. My wife owns a house in Australia and is still working full time in Australia. I clearly have financial, family and social ties to both countries. I have recently started claiming my UK State pension and UK work pension which is deposited in my UK bank account and is taxed in the UK.

My questions are

a) Do I need to include my UK pensions in my Australian tax return?

b) How will they be taxed?

c) Will I get a rebate for the tax already paid in the UK?

d) Article 17 states " Pensions (including government pensions) and annuities paid to a resident of a Contracting State shall be taxable only in that State." It is not clear to me as to what is considered to be my resident State - is it Australia or the UK?

Grateful for any advice please.

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ATO Certified Response
NikkiATO(Community Moderator)Community Moderator
ATO Certified Response28 July 2025

Hi @mickey8,


If you're an Australian resident for tax, you need to report your UK pensions, even if they’re taxed in the UK. Pensions are usually taxable in Australia. The Australia–UK tax treaty helps avoid double taxation – have a read to see how this works.


You might be able to claim a deduction for part of your UK State Pension using the Undeducted Purchase Price (UPP) method. You also might be able to claim a foreign income tax offset, depending on your situation.


Your resident state depends on your full circumstances. If it’s unclear, you might need to ask for a private ruling.


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UK Australia Double Taxation on UK State and Work pension paid in UK | ATO Community