info on war pension transfer.
 

Hello all!

headed for melbourne, mornington, on the 22nd october. me a nurse, hubby ex service and 3 kiddos. just wondered any ex service out there that can shed any light if the war pension is taxable in australia. we have had mixed reports and nothing concrete as such. Going out on a permanent residency visa.

thanks x:D

Re: info on war pension transfer.
 

Hi Jules,

Hopefully someone will be along with an answer for you - I think there are a few around getting service pensions.

Good luck :)

Re: info on war pension transfer.
 

Hi Jules

We moved out here in 2009. Hubby is ex British army. Now ADF. We get the pension paid direct to our Australian bank account and pay all tax in Australia. We don't pay any tax in UK. The Forces Pension Service can give you advice x

Good luck with your move x

Re: info on war pension transfer.
 

No Jilliebee....its not the Armed Forces pension they are asking about, its the War Pension which is a tax free allowance, that right Julessharp?

I have both and have just gone PR so now ALL my income is subject to tax in Australia.

The short answer is the WP is an allowance from UK but does NOT attract any special benefits/subsidies from Australian ATO. It is a tricky one really because of its very nature. I know what I am doing...but I will not give advice in case I am being seen to advocate non disclosure to the ATO :)

Re: info on war pension transfer.
 

Ah sorry. I'm getting mixed up :o

Re: info on war pension transfer.
 

Just had a look at ATO would this be a War Pension?In red


Exempt Australian Defence Force and United Nations payments

Certain pay and allowances for Australian Defence Force personnel (your employer will advise you if an amount is exempt)

Compensation payments for impairment or incapacity resulting from service with a United Nations armed force

Compensation payments made under the Military Rehabilitation and Compensation Act 2004, except those that are income-related payments

Pay and allowances for part-time service in the Australian Naval, Army or Air Force Reserve

Some allowances paid to Australian Defence Force personnel who served in prescribed overseas areas (your employer will advise you if an allowance is exempt)


Other exempt payments

Certain annuities and lump sums which are paid to an injured person under a structured settlement

Your share of certain profits or gains arising from disposal of investments by a venture capital limited partnership (VCLP), an early stage venture capital limited partnership (ESVCLP) or an Australian venture capital fund of funds (AFOF)

Certain distributions from an early stage venture capital limited partnership

Certain distributions from a pooled development fund

Certain payments relating to persecution during the Second World War

Certain profits or gains from disposal of shares in a pooled development fund

Japanese internment compensation payments made under the Compensation (Japanese Internment) Act 2001 or the Veterans' Entitlements Act 1986

Re: info on war pension transfer.
 

Also found this it might help.

http://law.ato.gov.au/atolaw/view.ht...4&pn=ALL:::ALL

Re: info on war pension transfer.
 

That means in a UN capacity and where the injury occurred whilst seconded to the UN, it does not mean just because your Service did UN activities, YOU had to have an injury during UN secondment.

Re: info on war pension transfer.
 

Now THAT is an excellent reference and actually helps me as well. As my War Pension falls within the circumstances accepted by the ruling then I do not have to pay Tax on it and I can now declare it to the ATO. This particular part of the reference says it all;

"In light of the comments made by the Courts in Goodfellow, Melkman, and Verzyden «it» is accepted by this Office that the exemption provided by paragraph 23AD(3)(c) applies to wounds and disability pensions payable by any government. Accordingly, wounds and disability pensions paid to Australian residents by a foreign government will be exempt from Australian income tax under paragraph 23AD(3)(c) of the Act if they fit into one of the categories of pensions described in section 365(2) of the United Kingdom Income and Corporation Taxes Act 1970."