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Foreign pension

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Newbie

Views 467

Replies 2

Hi I’m permanent resident in Australia and now I’m receiving Japanese survivor’s basic pension in Australia which is pension for widow or children under 18 years old due to recent husband’s death. This pension is tax exemption in Japan.
My understanding is widow pension in Australia is tax exemption however
my question is this pension taxable in Australia ?
If this pension is taxable in Australia I need to pay extra tax nearly $10,000 a year and that’s so ridiculous...,
1 ACCEPTED SOLUTION

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Most helpful response

Taxicorn

Replies 1

@hotairbaloon 

 

Yes it would be taxable income.

 

Why would you have to pay $10,000 tax?

 

You may qualify for  tax offset if the pension was made up from contributions also.

 

https://www.ato.gov.au/Forms/Determination-of-deductible-amount-for-UPP-of-a-foreign-pension-or-annu...

 

2 REPLIES 2
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Most helpful response

Taxicorn

Replies 1

@hotairbaloon 

 

Yes it would be taxable income.

 

Why would you have to pay $10,000 tax?

 

You may qualify for  tax offset if the pension was made up from contributions also.

 

https://www.ato.gov.au/Forms/Determination-of-deductible-amount-for-UPP-of-a-foreign-pension-or-annu...

 

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Newbie

Replies 0

Thank you for answering.
On my self calculation if this pension is taxable income my mixed income would rise.