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McAdam Siemon
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Hi Ryan,

Tough subject with may factors to consider.

I would suggets you get specific advice on this subject as foreign income can be tricky.

I would also suggest if there is any doubt at all you get a private tax ruling from the ATO. You can apply for these online and the outcome can be relied on for tax purposes.

Simply due to the fact that currently the pension is not taxed in AUS when your father receives it would indicate to me that it would probably not be taxed if you further distributed income to him. There is a double tax agreement in place with AUS and the US which I think would cancel this income out of his AUS taxable income.

If you are going to be distributing income to your father for tax purposes make sure you consider PSI rules and also try and keep down the beneficiary loans to reduce liability. Try a round robin of cheques.

Good luck and I hope this helps a bit.

Sam

Please note this is general advice only, you must seek professional advice prior to making any deciaions. McAdam Siemon do not claim any responsibility for decisions based on the general advise offered above.