My summary of the changes as a result of the pension tax "simplification" measures effective 06/04/2006:
http://www.gomatilda.com/news/article.cfm?articleid=376

Best regards.

That's certainly an interesting read Alan. Makes me wonder if I shouldn't retire early and take the lump sum before moving. It's bad enough that they get to keep all your money if you don't actually live that long!

I'm a little confused and worried by what I have just read.
Do I understand you are unaware of any registered Supers in Australia (for QROPS purposes) and does this mean when I take my pension to Oz, as I intend to do, I will be taxed on it before it arrives in my chosen super?
If this is true then the dilema is tax by Blighty if you move and tax by Oz if you stay.
Tell me please that I've got it wrong!

Just got my visas and sold the house so I'm coming anyway.

Cheers Paul.

I'm on the case with the Revenue in the UK as to the procedures to be followed by an Australian superannuation fund to secure QROPS status ... and am endeavouring to identify super funds in Australia that have this status.

Best regards.

quote:

Originally posted by Paul47:
I'm a little confused and worried by what I have just read.
Do I understand you are unaware of any registered Supers in Australia (for QROPS purposes) and does this mean when I take my pension to Oz, as I intend to do, I will be taxed on it before it arrives in my chosen super?
If this is true then the dilema is tax by Blighty if you move and tax by Oz if you stay.
Tell me please that I've got it wrong!

Just got my visas and sold the house so I'm coming anyway.

Cheers Paul.

Alan: I think you'll find no Aussie funds registered - they can't register until 6th April. The key question is which funds intend to register as QROPS, which may take some time.

Agreed.

The UK Revenue will be making forms available so that Australian super funds can seek QROPS status from 06/04/2006, or (I am advised) a super fund can send a letter detailing the information needed to the Revenue's specialist office handling approvals. I was advised to expect a turnaround time of 15 days.

Best regards.

Our Aussie super funds are aware of the situation and will apply as when needed.

The relative minor compliance issue (ie reporting requirements) will not be an issue as all Australian super funds already report ANY transaction on a members account to the ATO.

It follows (and I am in contact with super funds) that reporting to the Inland Revenue will not be an issue, and most major Australian super funds will become QROPS.

If you need to transfer a UK pension, speak to the Aussie fund of your choice and they will resolve all issues.

Hi Alan,

Thanks for that excellent article! I am moving in June and have 3 pensions that will need to be transferred, presumably by December to avoid any tax charges. As we've now passed A day, is there any update on the current situation and do you know if any Australian supers have applied to be QROPS?

Thanks
Antony

Hello all. I thought I'd share some information I've received from our Legal/Compliance Manager (I work for AAS, who manage 3.5 million super fund members in Australia)... BTW I'm not an expert in superannuation.

Most of this is nothing new, I've just posted here for info.

I've asked our Compliance department to let me know if any of our funds have applied for QROPS, and will post when I hear back.

Something to note is that, as part of the Budget released yesterday, the Aus government intends to remove the RBL (reasonable benefit limits). This is still at the planning stage, but is a core part of the broader push to simplify the superannuation "regime" in Aus.

Cheers,
Ian

<Begin>
An Australian Resident Regulated Complying Superannuation Fund can accept monies from an overseas superannuation fund, however this may vary depending on the rules of the overseas fund. Before making any arrangements to transfer benefits to an Australian fund the member will need to contact their old fund to ensure that the benefit can be transferred and we would strongly recommend the member seek independent financial &/or tax advice before making arrangements to transfer the benefit.
There are some specific provisions governing the transfer of monies from an overseas fund to an Australian fund. Briefly;
Transfers of overseas superannuation benefits may be taxable depending on the time the person has been a resident of Australia. If the transfer of benefits is made within 6 months of coming to Australian there is no tax on the transfer. However, if the transfer occurs after the person has resided in Australia for more than 6 months, then the increase in the benefit since arrival in Australia may be:
i) included in the taxable income of the person and taxed at their normal marginal rate, or
ii) the person can elect for all or part of the benefit to be taxed in the Australian fund as a taxable contribution (tax deducted at the concessional rate of 15%).
For that part of the benefit the member makes an election, it will not qualify as an undeducted contribution and will typically form part of the member's pre/post June 1983 component and will also count towards the person's Reasonable Benefit Limit (‘RBL’). If an election is not made, then the benefit transferred will generally be treated as an undeducted contribution in the Australian fund.
<END>

Thanks for your posting Ian.

For the record I should say that Go Matilda does not have an affiliation with any one specific superannuation fund or life company in Australia - persons wanting advice on where to invest their funds should seek advice from a suitably independent and qualified individual.

Best regards.