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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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UK Pension tax withheld

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Resident of Australia for tax purposes (not a temporary resident) and has been receiving a UK Pension for a number of years. Part way through the year, she noticed that tax was being withheld from her pension payment. What should she do about this?

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Most helpful response

ATO Community Support

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Hi @Mel143

 

If tax is being withheld from a foreign pension, the person will need to speak to that country's taxation system or the pension provider to find out why.

 

If tax is being withheld from a foreign income source, the person can likely claim a foreign income tax offset. They'll need to do so by lodging an amendment to their returns if they've already lodged.

 

You can read about foreign income tax offset rules on our website.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Mel143

 

If tax is being withheld from a foreign pension, the person will need to speak to that country's taxation system or the pension provider to find out why.

 

If tax is being withheld from a foreign income source, the person can likely claim a foreign income tax offset. They'll need to do so by lodging an amendment to their returns if they've already lodged.

 

You can read about foreign income tax offset rules on our website.