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of <h1>Pensions and Annuities Taxable Only in Resident State Under DTAA with Australia, Preventing Double Taxation.</h1> Pensions and annuities paid to a resident of one of the Contracting States under the Double Tax Avoidance Agreement (DTAA) between Australia and another state are taxable only in the state of residence. An 'annuity' is defined as a specified sum paid periodically at set intervals during a person's life or for a specified period, in exchange for full consideration in monetary terms. This provision is part of international conventions aimed at preventing double taxation.
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