MJones 19 Posted June 6, 2019 Share Posted June 6, 2019 A guy told me that retired Aussies living on pensions in Australia pay no tax on this income. He said regardless of how large the pension is. I find this hard to believe. Anyone from Australia who can tell me if this is true? Thanks Link to post Share on other sites
Ozepete 9,583 Posted June 6, 2019 Share Posted June 6, 2019 There is no tax on pensions in Oz. Au$826.00 for singles and 1245.00 for couples per fortnight tax free, plus rent allowance, phone , power, travel, etc etc concessions and basically free medical. It's a great life if ya don't work!!! 1 Link to post Share on other sites
baby43 157 Posted June 6, 2019 Share Posted June 6, 2019 I am on a aged pension here in Australia, drive a school bus, my accountant told me, i can earn up to $39,000.00 without paying tax, sure my bus company take tax out when i get paid but i get all the tax back when i do a tax return every year. 2 Link to post Share on other sites
+to_dave007 5,914 Posted June 6, 2019 Share Posted June 6, 2019 For Canadians the pensions ARE taxed, along with other income, but the first CAD$20,000 (approximately AUD$21,500) of all income is tax free. 1 Link to post Share on other sites
lamoe 14,544 Posted June 6, 2019 Share Posted June 6, 2019 (edited) 22 minutes ago, to_dave007 said: For Canadians the pensions ARE taxed, along with other income, but the first CAD$20,000 (approximately AUD$21,500) of all income is tax free. Same in US - added to total income on a pro-rated basis If no other income - then 50% is considered taxable but standard deductions usually mean no federal taxes to be paid Illinois (state) different deduction / rate basis Edited June 6, 2019 by lamoe Link to post Share on other sites
cookie47 2,022 Posted June 6, 2019 Share Posted June 6, 2019 Same answer as Ozepete.Not much more to add.... Sent from my MI MAX using Tapatalk Link to post Share on other sites
sierra01 175 Posted June 6, 2019 Share Posted June 6, 2019 UK doesn't pay enough pension to pay tax 😥 2 3 Link to post Share on other sites
mikewright 4,257 Posted July 13, 2019 Share Posted July 13, 2019 (edited) Depends on the pension. OP suggests no tax is payable regardless of how large the pension is. This is probably correct for most pensions from a superannuation scheme in the pension stage. Some government pensions are also tax free, such as the TPI pension paid to totally and permanently incapacitated military veterans. But for the more common "old age" pension, it would usually be added to any other income you receive, and form part of your taxable income. But whether you pay tax or not would then depend on your total income. Edited July 13, 2019 by mikewright Sp 2 Link to post Share on other sites
CardiacKid 2,309 Posted July 14, 2019 Share Posted July 14, 2019 19 hours ago, mikewright said: Some government pensions are also tax free, such as the TPI pension paid to totally and permanently incapacitated military veterans. But for the more common "old age" pension, it would usually be added to any other income you receive, and form part of your taxable income. But whether you pay tax or not would then depend on your total income. Glad to see Australia as well as the U.S. recognizes that the tax on disability pensions was paid the day the incapacitation occurred. 1 Link to post Share on other sites
Jess Bartone 1,820 Posted July 14, 2019 Share Posted July 14, 2019 On 6/6/2019 at 4:26 PM, Rexsmith said: A guy told me that retired Aussies living on pensions in Australia pay no tax on this income. He said regardless of how large the pension is. I find this hard to believe. Anyone from Australia who can tell me if this is true? Thanks Be aware that you must be resident in Australia for 2 years prior to applying for the pension. No exceptions. 2 Link to post Share on other sites
GBT62 836 Posted July 14, 2019 Share Posted July 14, 2019 3 hours ago, Jess Bartone said: Be aware that you must be resident in Australia for 2 years prior to applying for the pension. No exceptions. and I'm sure by the time I would be possibly eligible (on the current rules) - it'll be moved out by another 10 years older (it's currently being pushed from 65 up to 70 over a period of time). I can't see me doing any 2 year visit back to TaxStralia in that case... Link to post Share on other sites
Paddy 1,434 Posted July 15, 2019 Share Posted July 15, 2019 On 6/6/2019 at 8:16 PM, sierra01 said: UK doesn't pay enough pension to pay tax 😥 I have 2 UK pensions - both taxable. The sum of them still doesn’t incur tax! Link to post Share on other sites
Paddy 1,434 Posted July 15, 2019 Share Posted July 15, 2019 (edited) On 6/6/2019 at 6:06 PM, to_dave007 said: For Canadians the pensions ARE taxed, along with other income, but the first CAD$20,000 (approximately AUD$21,500) of all income is tax free. @to_dave007 are you taxed as a resident or non-resident? That $20k is an approximate figure based on tax credits/thresholds etc. for a person taxed as a resident. For a non-resident, CRA takes 25% of Canadian source income and calls it quits - at least, that’s my understanding (I am about to find out!...) But you’re right about pensions being taxed. OAS can even be clawed back (up to 100%) if total income exceeds a threshold amount (somewhere in the $70k range). There is a $2000 deduction for any pension income. So it’s true to say that the first $2000 of pension income is not taxed. Edited July 15, 2019 by Paddy Additional Link to post Share on other sites
+to_dave007 5,914 Posted July 15, 2019 Share Posted July 15, 2019 39 minutes ago, Paddy said: @to_dave007 are you taxed as a resident or non-resident? That $20k is an approximate figure based on tax credits/thresholds etc. for a person taxed as a resident. For a non-resident, CRA takes 25% of Canadian source income and calls it quits - at least, that’s my understanding (I am about to find out!...) But you’re right about pensions being taxed. OAS can even be clawed back (up to 100%) if total income exceeds a threshold amount (somewhere in the $70k range). There is a $2000 deduction for any pension income. So it’s true to say that the first $2000 of pension income is not taxed. Still taxed as resident.. Sought and obtained CRA residency status. 1 Link to post Share on other sites
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