Tax returns
 

Hi all

Does anybody receive a UK Armed Forces Disability pension which is tax excempt in the UK? If so, how do you go about it with the Australian tax return? not sure whether to declare it or not.

Cheers for any advice or leads on this matter.

Dave

Re: Tax returns
 

Yes, per the ATO website you have to declare it on your Australian tax return:
http://law.ato.gov.au/atolaw/view.ht...3&pn=ALL:::ALL

Issue
Is a pension received by an Australian resident taxpayer from the United Kingdom («UK») Armed Forces Pensions Scheme assessable under section 27H of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision
Yes. The pension received by the Australian resident taxpayer from the «UK» Armed Forces Pensions Scheme is assessable under section 27H of the ITAA 1936.

Facts
The taxpayer is a resident of Australia for income tax purposes.

The taxpayer receives a pension from the «UK» Armed Forces Pensions Scheme.

Re: Tax returns
 

I think there's a difference between an Armed Forces pension and an Armed Forces Disability pension, the latter being exempt from UK tax even to a UK tax resident. I am guessing that the facts are closer to this situation - http://law.ato.gov.au/atolaw/view.ht...5&pn=ALL:::ALL - but that's not much help as it's been repealed! I'd ask the ATO I think.