Hello there, I currently have a small UK Armed Forces Tax free war pension, I am hoping to migrate to Western Australia and I am wondering would my pension be Tax Free in Australia ?, what would be the effect of getting the pension transfered to Australia ?, or would I be better of not declaring the pension to the Australian Tax man, and taking the money out on my cash point card?.
Unfortunately no,not a answer from anyone, the British Legion and the veterins agency, both say the pension can be paid, either through the high commision or via a bank, but are totally unsure of the tax aspect, they advise contacting the Australian tax office, but if they rule against you, and they have your name, you are snookered on entry to Australia, I was after advice, not a binding contract off people.
The short answer is that all pensions paid to you from UK and declared to the Australian Tax Office on your personal annual return are classed as "income" and subject to the Australian tax rules.
They, like us, however, have a lower "earnings" limit before you start to pay tax and if that is your only income you may not be liable. I would advise checking out their website www.ato.gov.au (I believe) which is a minefield but it is all there.
Just like to say thank you for the advice, but I intend to work so the pension will not be my only income, I suppose I will have to bite the bullet and get a Ruling from the Tax man on this if I am lucky enough to be accepted.
bob how about your preserved? pension, when thats due. last i heard, you had to tell the mod you are leaving the country, and they freeze its value until you retire. then its index linked, but after years of stand still =loss instead of it increasing with index rate, if you stayed in the uk.
this is only the case for certain countries! the ones enlisted people are likely to go to! countries officers are likely to go to, are not frozen! but remain index linked.
or am i just being a sceptic
Posts: 16 | Location: southern uk | Registered: 13 August 2004
As I stated earlier I have to go to the tax inspecter for a binding decision on my pension, because I have a war pension it is not frozen, so I am still up in the air until I am accepted, thank you for you coments anyway.
