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How far does Australian retirement income go in Thailand, Poland and Malaysia?The maximum basic rate of Age Pension for a single person living outside Australia long term is A$29,520.40 a year from 20 September 2026, according to Services Australia. For a couple who are both el…
Retiring overseas from Australia: tax residency, super and Age Pension rulesA retiree who moves overseas stops being an Australian resident for tax purposes when they no longer reside in Australia and do not meet any of the three statutory tests, according to the Australian T…
Does retiring overseas end Australian tax residency?Australian tax law sets four residency tests, and a person who meets any one of them is an Australian resident for tax purposes, according to the Australian Taxation Office (ATO). A person who meets n…Section 01 · Tax treaties
Which country can tax a retiree's income under a double tax agreement?
According to the Australian Taxation Office (ATO), a double tax agreement reduces or eliminates double taxation by setting out which country can tax different types of income, such as pensions, interest, dividends and rent1. The agreements also include measures against tax avoidance and evasion, and allow a taxpayer to raise a case if tax has been charged contrary to the agreement.
The wording of the agreement determines which country can tax the income. Where income "shall be taxable only" in one country, that country has the sole right to tax it1. Where income "may be taxed" in the other country, the country where the income arises can also tax it, which is often limited to a set rate such as a withholding tax.
A retiree's country of residence under the agreement is central to determining which country can tax the income. Australian tax residency is assessed under four tests: the resides test, the domicile test, the 183-day test and the Commonwealth superannuation test. A person who meets none of the four tests is a foreign resident for tax purposes2.
A foreign resident has no tax-free threshold and does not pay the Medicare levy3. A foreign resident generally declares income earned in Australia, such as rental income, in an Australian tax return.
How residency fits into the wider income tax system is covered in How does the Australian tax system work?
Section 02 · The agreements
What are Australia's tax agreements with Thailand, Poland and Malaysia?
Australia has income tax agreements in force with Thailand, Poland and Malaysia, three of the 47 countries and jurisdictions with which Australia had income tax treaties as at 24 March 2026, according to Treasury4. The Malaysia agreement has the earliest signing date of the three agreements, at 20 August 1980.
All three agreements have been modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, known as the Multilateral Instrument (MLI)4. The MLI includes a rule that can deny a treaty benefit where obtaining that benefit was one of the main purposes of an arrangement567.
Australia's income tax treaties have the force of law under the International Tax Agreements Act 19534.
| Australia's income tax agreements with Thailand, Poland and Malaysia | ||||
|---|---|---|---|---|
| Country | Agreement signed | Agreement in force | MLI in force for the agreement | MLI applies to withholding taxes from |
| Malaysia | 20 August 1980 | 26 June 19814 | 1 June 2021 | 1 January 2022 |
| Thailand | 31 August 19894 | 27 December 1989 | 1 July 2022 | 1 January 2023 |
| Poland | 7 May 1991 | 4 March 19924 | 1 January 2019 | 1 January 2019 |
Source · Treasury, Income tax treaties; ATO, synthesised texts of the MLI and each agreement.
A retiree who is considered a resident of both Australia and the other country under their respective domestic laws is treated as a resident of only one country for the purposes of the agreement1.
Three tests apply in order under all three agreements567:
- the country where a permanent home is available to the person
- if there is a permanent home in both countries or in neither, the country where the person usually lives
- if the person usually lives in both countries or neither, the country with which the person's personal and economic relations are closer.
The Thailand and Malaysia agreements also consider citizenship when determining which country a person's personal and economic relations are closer to57.
Section 03 · Age Pension
Which country taxes the Australian Age Pension of a retiree living overseas?
The Age Pension paid to a resident of Thailand, Poland or Malaysia is taxable only in the retiree's country of residence under Australia's agreement with each country567.
For an Australian resident, the Age Pension is a taxable Australian Government pension and is declared in the Australian tax return8.
There are exceptions for some government pensions. The Poland agreement covers pensions including government pensions6. The Thailand and Malaysia agreements treat some pensions for past government service separately57.
A pension paid for past service to an Australian government can be taxed in Australia under the Thailand and Malaysia agreements. Under the Thailand agreement, it is taxable only in Australia unless the recipient is both a resident and a citizen or national of Thailand5. Under the Malaysia agreement, a pension paid by Australia for past service to the Australian Government is taxable in Australia7.
Section 04 · Super income
Which country taxes Australian super pension payments to a retiree overseas?
A super income stream paid to a retiree who is a resident of Thailand, Poland or Malaysia under the agreement generally falls under the same pensions rules, meaning it is taxable only in the country of residence567. According to the ATO, no Australian withholding is required where a tax treaty makes a foreign resident's super income stream assessable only in the other country9.
Where a foreign resident's super income stream remains assessable in Australia, the fund is generally required to withhold tax from the payment9.
Under Australian law, the taxed element of a super income stream paid to a recipient aged 60 or over is tax-free because it is classified as "not assessable, not exempt" income10. The tax-free component has the same treatment at any age. An element untaxed in the fund is taxed at marginal rates with a 10% tax offset for a recipient aged 60 or over.
Section 05 · Investment income
How are Australian interest, dividends and rent taxed for a retiree overseas?
Australian payers generally withhold 10% from interest paid to a resident of Thailand, Poland or Malaysia12. This withholding is a final tax, so the interest is not included in an Australian tax return2.
The agreements limit Australian tax on interest to 25% for residents of Thailand other than financial institutions, 10% for residents of Poland and 15% for residents of Malaysia. As all three limits are at or above Australia's 10% withholding rate, 10% is withheld in each case567.
Unfranked dividends paid to a resident of Poland or Malaysia are subject to Australian withholding tax of no more than 15%67. The Thailand agreement sets a dividend limit only where the recipient is a company that directly holds at least 25% of the paying company5. Unfranked dividends paid to an individual resident of Thailand are therefore subject to the Australian rate of 30%12.
Fully franked dividends paid to a foreign resident carry no Australian withholding tax13.
| Australian withholding tax on interest and dividends paid to individual residents of Thailand, Poland and Malaysia | ||||
|---|---|---|---|---|
| Country of residence | Interest limit (%) | Interest withheld (%) | Unfranked dividend limit (%) | Unfranked dividend withheld (%) |
| Thailand | 255 | 10 | No limit for individuals | 3012 |
| Poland | 10 | 10 | 156 | 15 |
| Malaysia | 157 | 10 | 15 | 15 |
| Country without an agreement | Not applicable | 10 | Not applicable | 30 |
Source · ATO, Withholding rate; ATO, synthesised texts of the MLI and each agreement.
Rent from an Australian property can be taxed in Australia under all three agreements, because Australia retains the right to tax income from Australian real property567. A foreign resident pays Australian tax on taxable rental income as part of their Australian taxable income, at 30% on taxable income up to $135,000 in 2025–26, with no tax-free threshold143.
Each agreement also lets Australia tax a gain on the sale of Australian real property owned by a resident of the other country567. A foreign resident generally cannot claim the main residence exemption on an Australian home sold after 30 June 2020, unless the life events test is met15.
The life events test requires a continuous period of foreign residency of six years or less, and one of three events during that period15:
- the person, their spouse or their child under 18 had a terminal medical condition
- the person's spouse or child under 18 died
- the sale happened because of a formal agreement following the breakdown of a marriage or relationship.
For a sale under a contract, the sale happens when the contract is entered into15.
A foreign resident is generally not entitled to the full 50% capital gains tax (CGT) discount on Australian property acquired after 8 May 2012, and may be entitled to an apportioned discount for periods when they were an Australian resident16.
The events that create a capital gain are covered in What triggers capital gains tax in Australia?
Section 06 · Tax credits
How are foreign tax credits claimed for retirees in Thailand, Poland and Malaysia?
Australia's agreements with Thailand, Poland and Malaysia each require the other country to give its residents a credit for Australian tax paid on income that the agreement allows Australia to tax. The credit cannot exceed the tax that country would otherwise charge on the same income567.
For a retiree who is a resident of Thailand, Poland or Malaysia, the credit can cover Australian tax on rent and Australian withholding tax on interest and unfranked dividends, where the agreement allows Australia to tax that income567.
The ATO can issue a certificate of payment for Australian withholding tax, which can be requested through the Australian payer as evidence of the tax paid17.
Different rules apply to an Australian tax resident who pays tax overseas. An Australian resident for tax purposes who has paid tax in Thailand, Poland or Malaysia may be entitled to relief through the foreign income tax offset18. The offset applies to foreign tax paid on income included in Australian assessable income.
Only foreign tax charged in line with the agreement counts towards the offset. Where the other country charges more than the agreement allows, the excess does not count, and any refund of the excess is a matter for that country's tax authority18.
The offset can be claimed only after the foreign tax is paid. Where the foreign tax is paid after the year the income was included, an amended assessment can be requested within four years of the date the foreign tax was paid18.
How Australian tax on rental income and expenses is worked out is covered in How are rental property income and expenses taxed in Australia?
Section 07 · Treaty texts
Where can the full text of Australia's tax agreements with Thailand, Poland and Malaysia be found?
Treasury maintains the list of Australia's income tax treaties, with a link to each agreement's text, its explanatory memorandum, the date it entered into force and details of whether it has been modified by the Multilateral Instrument (MLI)41. The list was last updated on 24 March 20264.
The ATO publishes a synthesised text for each of the three agreements, showing how the original agreement reads after the MLI changes are applied4. A synthesised text is provided for reference and is not itself a source of law. The original agreement and MLI legal texts take precedence5.
The Malaysia synthesised text also includes changes made by three protocols signed in 1999, 2002 and 20107.
| Where to read Australia's agreements with Thailand, Poland and Malaysia | |||
|---|---|---|---|
| Agreement | Authentic text | Synthesised text with the MLI | Synthesised text last updated |
| Thailand | 1989 agreement, linked from Treasury's income tax treaties table4 | ATO legal database, Thai Agreement | 24 April 20255 |
| Poland | 1991 agreement, linked from Treasury's income tax treaties table4 | ATO legal database, Polish Agreement, prepared with Poland's Ministry of Finance6 | Not stated |
| Malaysia | 1980 agreement and the 1999, 2002 and 2010 protocols, linked from Treasury's income tax treaties table4 | ATO legal database, Malaysian Agreement, prepared with Malaysia's competent authority7 | 15 July 20227 |
Source · Treasury, Income tax treaties; ATO, synthesised texts of the MLI and each agreement.
Section 08
Double tax agreements for retirees: quick answers
Does Australia tax the Age Pension of a retiree living in Thailand?
No, Australia generally does not tax the Age Pension of a retiree who is a resident of Thailand, because the Australia-Thailand agreement makes the pension taxable only in Thailand. Where Thailand taxes income only when it is brought into Thailand, Australia's relief under the agreement applies only to the amount remitted or received there.
Is super pension income taxed in Australia after moving to Malaysia?
Super pension income paid to a resident of Malaysia is generally taxable only in Malaysia under the Australia-Malaysia agreement, and no Australian withholding is required where the agreement makes the payment assessable in Malaysia. Where Malaysia taxes income only when it is remitted to or received there, Australia's relief applies only to the amount remitted or received.
What Australian withholding tax applies to dividends paid to a resident of Poland?
Unfranked dividends paid to a resident of Poland are subject to Australian withholding tax of no more than 15% under the Australia-Poland agreement. Fully franked dividends paid to a foreign resident carry no Australian withholding tax.
Do foreign residents pay Australian tax on rent from an Australian property?
Yes, foreign residents pay Australian tax on rent from Australian property, and Australia's agreements with Thailand, Poland and Malaysia each allow Australia to tax that rent. In 2025–26, foreign residents are taxed at 30% on taxable income up to $135,000, with no tax-free threshold.
Can a foreign resident claim the main residence exemption on an Australian home?
A foreign resident generally cannot claim the main residence exemption on an Australian home sold after 30 June 2020, and no partial exemption is available. The exception is the life events test, which covers foreign residency of six years or less during which the person, their spouse or their child under 18 had a terminal medical condition, the person's spouse or child under 18 died, or the home was sold under a formal agreement following a relationship breakdown.
References
- Australian Taxation Office (ATO), Income tax treaties · ato.gov.au ↑ b c d
- Australian Taxation Office, Your tax residency · ato.gov.au ↑ b c
- ATO, Foreign and temporary residents · ato.gov.au ↑ b
- Treasury, Income tax treaties · treasury.gov.au ↑ b c d e f g h i j k l
- ATO, Synthesised text of the Multilateral Instrument and the Australia and Thailand tax treaty · ato.gov.au ↑ b c d e f g h i j k l m n o p q
- ATO, Synthesised text of the MLI and the Australia and Poland tax agreement · ato.gov.au ↑ b c d e f g h i j k l m
- ATO, Synthesised text of the MLI and the Australia and Malaysia tax agreement · ato.gov.au ↑ b c d e f g h i j k l m n o p q r
- ATO, Individual tax return instructions 2026, question 6 Australian Government pensions and allowances · ato.gov.au ↑
- ATO, Schedule 13 Tax table for superannuation income streams · ato.gov.au ↑ b
- ATO, Super income stream tax tables · ato.gov.au ↑
- ATO, Schedule 13 Tax table for superannuation income streams: Tax file number (TFN) declarations · ato.gov.au ↑
- ATO, Withholding rate (investment income and royalties paid to foreign residents) · ato.gov.au ↑ b c
- ATO, Withholding from dividends paid to foreign residents · ato.gov.au ↑
- ATO, Tax rates: foreign residents · ato.gov.au ↑
- ATO, Main residence exemption for foreign residents · ato.gov.au ↑ b c d
- ATO, CGT discount for foreign residents · ato.gov.au ↑
- ATO, Interest, unfranked dividends and royalties (foreign resident investments) · ato.gov.au ↑
- ATO, Guide to foreign income tax offset rules 2026 · ato.gov.au ↑ b c d