uk pension payments

 Author: RachelATO(Community Moderator)Community Moderator

3 Feb 2026

Hi @mshurety,

No, a UK pension tax-free lump sum isn't automatically tax-free in Australia. Most foreign pensions and annuities are taxable in Australia, even if tax was withheld by the country making the payment. This includes lump sum payments from UK pension schemes.

The tax treatment in Australia depends on the specific circumstances of the payment and any applicable tax treaty provisions between Australia and the UK. You'll need to declare the payment in your Australian tax return, and we'll assess it according to Australian tax law.

If you're unsure about your situation or how the tax treaty applies to your payment, you can ask us for tailored technical assistance. We'll be able to provide you with a response specific to your payment.

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