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Declaration of foreign income from pension fund

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I received a tax free (uk) lump sum payment from my UK "non-contributory" pension fund but cannot find on the tax return where it should be declared. Under the "Foriegn Pensions and Annuities" section, Gross Income, it tells you not to enter a lump sum and then only allows a "previous years" lump sum to be declared. Where should current tax year, 2019/20 lump sum payment be declared? It appears from defentions that my fund is not UPP related but i'm not clear on this. 

I contacted the ATO 2 weeks ago and was told that I would be contacted within 5 business days. To date I've heard nothing. Is someone able to help with my question?

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Former Community Support

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Hi @Eric-45

 

You are on the right track with Item 20 Foreign source income except it should be in a different section - Part D 'Foreign superannuation lump sums'. There is a section on checking whether your lump sum payment is 'tax-free' (as per Lump sums from a foreign super fund). This is the key point because, "If your lump sum payment is tax-free, do not show it anywhere on your tax return." (from Item 20 webpage above). There is a couple of sections in Part D on checking your 'applicable fund earnings', which may be relevant to you also.

 

Remember 'tax-free' in the UK doesn't necessarily mean that it is 'tax-free' in Australia. I am unsure whether you would be eligible for a UPP deduction, from reading your circumstances. If you haven't lodged your tax return yet, you may want to consider being seeing a registered tax professional, as your situation is more complex than usual.

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @Eric-45

 

You are on the right track with Item 20 Foreign source income except it should be in a different section - Part D 'Foreign superannuation lump sums'. There is a section on checking whether your lump sum payment is 'tax-free' (as per Lump sums from a foreign super fund). This is the key point because, "If your lump sum payment is tax-free, do not show it anywhere on your tax return." (from Item 20 webpage above). There is a couple of sections in Part D on checking your 'applicable fund earnings', which may be relevant to you also.

 

Remember 'tax-free' in the UK doesn't necessarily mean that it is 'tax-free' in Australia. I am unsure whether you would be eligible for a UPP deduction, from reading your circumstances. If you haven't lodged your tax return yet, you may want to consider being seeing a registered tax professional, as your situation is more complex than usual.