aussie citizen on pension living overseas. been resident for tax purpose more than 37years
only income pension.
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If someone fails to continue to meet the Australian tax residency test then they will be subject to Foreign Residents tax rates.
https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents
https://www.ato.gov.au/calculators-and-tools/tax-return-work-out-your-tax-residency
Thankyou for your response, so to put it in my words, when i live overseas next year besides losing i think part A of the pension i also lose the tax free $'s as well and get charged 30% tax as well.
The reason we are leaving Aust is because we cant survive here on the pension and now it looks like a big hit again.
Hi @bobjmars,
@YEP is correct, if you are considered a foreign resident for tax purposes, then you would follow the rules for foreign residents. We have tests to determine if you are considered an Australian for tax purposes or you could use the decision tool YEP provided. This would be your first step.
If you are considered a foreign resident for tax purposes, there is no tax-free threshold ($18,200). You would be taxed 30% of every dollar you earn.
As for the aged pension, you might be able to continue to receive the pension when traveling outside Australia. It would be best to confirm with Services Australia though, since they administer the pension.
We would recommend speaking with a tax agent or financial advisor before making any big financial decisions.
If you are having financial difficulties, our personal crisis support page has a list of contacts that might help depending on your situation.
No - not necessarily. Just because you are a non-resident for tax purposes does not mean you pay income tax on the Age Pension. There is a lot of absolute rubbish circulating that you do - it is not true - it MAY be true. Just because you are a non-resident for tax purposes does not mean you have to pay income taxes on the Pension. It might mean that you do, but only if you have other income sources that are taxable, or if you do not meet other criteria. The ATO provides a web tool you can complete which will answer the question for you and others much better. The tool advises if you need to lodge a tax return (and pay taxes) or not. I live overseas for many years and have completed it as a non-resident and I pay no taxes on my pension. I actually still lodge a tax return each year - just to be safe - it is always zero tax (just got 2024-25 return).
Questions | Do I need to lodge a tax return?
IMO do not login to MyGov and complete the 'online test' from there - it is always best not to do this for any matter if you do not have to - because they keep records of all your activity there (which CLink, Medicare, ATO etc. can access if they want). Same wjen mnaking a phone call - these days they demand your name and CRN or TFN before they will talk to you - same reason - it is recorded.
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