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Go Matilda - Your Gateway to Australia The Go Matilda Forums The Go Matilda Forums The Tax and Money Forum Delaying a Pension Transfer !
The Go Matilda Forums The Go Matilda Forums The Tax and Money Forum Delaying a Pension Transfer !|
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Junior Member |
My Partner and I have just received our Visa (skilled and spouse) and are set to go in the next month, however as our intention is to travel for our first year in Oz before settling,I won't be in a position to make any moves towards transferring the funds held in a Company Pension scheme that I have built up over 18 years.
I understand from undertaking some research that some moves need to be made towards the transfer within six months of your arrival, or there are tax implications, can anyone enlighten me further. |
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Member |
Hiya,
You will have 6 months from the time you become a permanent resident in which to transfer your pension. This Pension Transfer will need to be "completed" before this deadline otherwise you will be liable for any gains made on it. However, if you this miss this deadline, my understanding is that the ATO will calculate such gains from the time you arrive in Australia and not when you become a perm resident. Hope this helps.... Chorlton |
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Member |
I am not sure that what you say is true. I have investigated transferring my UK pension fund to my super fund here in Oz. As the new QROPS rules in the UK have made things difficult my super fund (AMP) have not made any suggestions yet to move it. Nor have they indicated that there would be any tax implications here if I were to transfer the fund.
JustandNeil - are you referring to a scheme that is still active - ie not already paying you a pension, and one that will be effectively 'parked' once you stop working for your current employer ?? If this is the case then you will need to sort out an approved super fund here to transfer the money into. |
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Member |
Colin - section 27CAA of the ITAA 1936 is relevant ... as Chorlton says there is a 6 month window after becoming a tax resident of Australia to effect a transfer of an overseas pension fund otherwise a tax charge can eventuate, albeit one that is usually borne by the receiving superannuation fund.
Best regards. Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Member |
Thanks for that Alan. As it is, my super fund have refused to do anything about transferring my UK pension fund to Oz until the new UK rules have settled down. I also noted that they (AMP) are not on the list of QROPS approved organisations - must contact them to find out why !
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Junior Member |
Thanks for that. The fund is dormant as such, I ceased work with this employer over 12 months ago. So can I just clarify, that I have a six month window of opportunity, after which the fund will be liable to some CGT ?
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Member |
Take a look at these articles which spell out all of the ramifications
http://www.advance.com.au/resources/afm/downloads/Techn...ansferring_super.pdf http://www.advance.com.au/resources/afm/downloads/Techn...icles/uk_changes.pdf Regards |
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Member |
I have recently instructed a company (based in the UK) to carry out an assessent as to whether I should transfer my UK pension (to a suitable receiving fund (QROP recognised) in Oz) or whether I should leave it where it currently is. The information I have posted in the my previous post was based on information I received from this company. |
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Member |
Not CGT, but an income tax charge computed under the section 27CAA provisions.
Best regards.
Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Member |
Agreed - the section 27CAA tax charge is computed with reference to the overseas pension scheme's value on the date you become a tax resident of Australia, not when you become a permanent resident for immigration law purposes.
Best regards.
Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Member |
Hi,
I just wanted to make sure I have understood this properly, since this seems like a pretty important point. If you transfer your pension to a non-QROPS fund, you would pay 40% tax on the whole amount transferred (taxed at the UK end). If, however, you simply delay the transfer (but ultimately *do* pay it into a QROPS fund), you would pay tax just on any *gains* the fund has made, since the time you became an Australian resident for tax purposes. This would be payable to the Australian tax system. Is this right? Thanks, PPJ |
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Member |
Yes - and you might also have an Australian tax liability if you transfer to a non-QROPS fund more than 6 months after you become a tax resident of Australia.
Also, don't overlook the possibility of annual tax liabilities on pension funds retained outside Australia under the Foreign Investment Fund Rules (albeit that there may be exemptions available). Best regards. Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Member |
Thanks Alan.
What types of fund would be exempt? This message has been edited. Last edited by: PPJ, |
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Member |
We're getting into the finer details here, and at this point I'd usually say we'd need to agree a fee for further assistance.
In the meantime, maybe have a read here: http://www.ato.gov.au/individuals/content.asp?doc=/content/66277.htm Best regards. Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Go Matilda - Your Gateway to Australia The Go Matilda Forums The Go Matilda Forums The Tax and Money Forum Delaying a Pension Transfer !
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