We are in the early stages of emigrating to Australia. Wife is a nursing sister NHS/PCT. She would be the primary visa applicant. I have just retired aged 53yrs from the police service after 31 yrs. What would be my tax position with regard to my police pension. I currently receive my pension once a month with tax deducted. I would appreciate your views/observations/advice. Many thanks

My understanding is that under the double tax treaty with the UK your pension will become exempt from tax in the UK and will be fully assessable for tax in Australia.

Did you have to contribute towards your pension? If so then you may be entitled to a deduction from tax in respect of your contribution towards your pension.

Please remember that once you are a permanent resident in Australia then you are liable to tax on your world wide income. Your pension is still taxable even if you leave it in a UK bank account.

If I were you I would look into transferring your pension into a superannuation fund in Australia within 6 months of arrival as super gives great tax breaks over here. Problem will be if your pension fund has already purchased an annuity to fund your pension.

You need to talk to an accountant who has experience in UK and OZ tax. Alan at Go Matilda is that kind of guy.

Paddy,
Thanks for the reply, much appreciated. Police pensions are not invested funds. Officers pay 12% of their gross pay. Simply put, the contributions of serving officers pay the pensions of retired officers, thats it really. My main concern was that I didnt want to face the prospect of paying income tax in the UK and Australia. Such a situation would seriously affect our ability to plan/execute our move to Australia. Thanks again for your reply.

Hello Family5, I to am a retired Police Officer from the UK now living in Australia on a 410 retirement visa. The 410 Visa is a temporary one valid for 4 years renewable every 4 years. I was initially taxed in Oz on my Police pesion and not in the UK, however the UK tax office changed the rules and now I am taxed at source. I believe that if you become a PR you will pay tax in Oz on your Police Pension.
You are right in saying that our pension cannot be put into a superfund.
I would suggest that you make contact with an 'Oz tax man' at some stage in the early days as there are a number of issues to be aware of.
I use a tax advisor given to me by Go Matilda Alan and so far he has sorted me out and he did not break the bank. The previous tax man I used actually stuffed everything up but Craig put my tax affairs in order.
If I can be of any further help please contact me. I believe you can do a one to one email on the GoMat forums but being a numpty it's beyond me. Regards

Hello again family5, sorry I did not get back to you on your PM but I seem to have lost it plus we have been away for a few weeks up to Magnetic Island in QL (and places in between home and there!) I you want to try again I will try harder. Regards Mick