Tax on PSS Pension components for a Foriegn Resident

[#1]

Hi,

I am intending to retire at age 60 and will be claiming a full PSS pension as part of my retirement benefits. I am considering the option of retiring in Singapore and am wondering if I became a foreign tax resident, would the taxed and taxable taxed component of the pension remain untaxed (as i will have reached preservation age) as they would if I was an Australian tax resident, and would only the untaxed portion of the pension be subject to the foreign resident tax rate of 32.5c for each $1 ?

[#2 · Accepted solution]

@Angmo 

If you cease to be an Australian Resident for tax purposes and move indefinitely to another country you will be subject to their tax system/rates.

However, if there is a double tax agreement with that country, you won't be taxed twice.

Having a PSS, I presume is a "government' pension and as such never was taxed going in so it will be taxed coming out.

A similar question was answered here

[#3]

@macfanboy 

PSS is a government pension made up of three components - taxed (upon which tax has already been paid), taxable untaxed (which is tax free after preservation age) and untaxed (which for Australian tax residents are taxed at a substantially discounted rate).  Government pensions are treated seperately from pensions sourced from commercial super funds under the DTA with Singapore and, if it read it right, will be subject to Australian tax only ,and at a foreign resident rate in the situation I outlined. My question specifically relates to the treatment of the tax free elements which, if they are not taxable, I am assuming would not be subject to foreign resident tax rates.

[#4]

@Angmo 

Yes I believe that to be the case.