I have started my visa application and hope to migrate to Oz as a Skilled Independent next year. I am currently putting together a list of all the things I need to look at and hence I have the following questions.

I am 31, hope to retire early and work in I.T. My Uk salary is around £40-50k per annum, I would hope for an Oz salary (in Perth) of $60-70k.

Can anyone help with the questions below, or any other points I need to consider?


Pensions
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1. I have read that if I transfer my pensions to Oz within 6 months of arriving then I will not pay tax on these, after 6 months I will pay tax on the increase in value between when I arrived and when I transferred the pension. Is this correct and what else do I need to consider?

2. Do Oz pensions work in a similar way to UK ones, I have a British Telecom pension and a Norwich Union (personal) pension. I would be looking to transfer these to a single Oz pension.

3. Are there league tables showing the top performing Oz pension funds etc? Are there recommended pension providers?

4. Has anyone here transferred their pensions. How painful/painless was the process, what forms do you need etc?

5. I presume that if I am moving permanently to Oz then it is highly recommended to move my pensions over with me.


Funds/Investments
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6. I have an International Investment Bond from St James Place (www.sjp.co.uk) that I would like to keep. The product is called a single premium life policy. Any withdrawals of 5% per annum are treated as a return of capital in the UK and hence I can withdraw this amount tax free. If I don't withdraw 5% for x years, then I can withdraw x * 5% in a single year, e.g. 50% after 10 years, also Tax free. Would this also be the case in Australia?

7. Are there any websites like moneyextra (www.moneyextra.co.uk) in Australia that provide information on Investments/Savings/Mortgages/Pensions etc?


Houses
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8. I have a number of properties in the UK that I rent out. If I sell these when I emigrate, do I pay CGT in the UK?

9. If yes/no to the above question, what do I need to be aware of with respect to the timing of the sale. For example must I complete the sale on the rental properties within 6 months of my proposed migrating date?

10. If the completion of the sale of some/all the rental properties occurs once I am in Australia, will I pay Australia tax on the value that the properties has increased by from the time I arrive to the time the sale is complete. (i.e. total gain in property value/the number of days I have owned the property)?

regards

Alex

Alex,

i have recently arrived in Aus and i have been a little surprised by the tax system. i have been sponsored by an employer, who has provided a tax briefing with PriceWaterhouseCoopers. i highly recommend you get some professional tax advice BEFORE you leave the UK. i am not a tax professional but i woill comment on a couple of your questions:


All your assets are assessed in value for the day you arrive in Aus. From that day onwwards you are liable for tax on the growth of that asset.

as a resident of Aus, you will not pay UK CGT on sale of your properties, but you will pay Aus tax. there is no threshold of tax free CG as in the UK, you are taxed on the full amount.

Managed funds are a bad idea for tax, you are taxed on it's annual growth. Shares you are taxed on the dividend, then the growth when you sell them.

not all is bad news, there are new rules this year about foreign assets. if it was an australian rental house then the cost of the mortgage interest can be offset against an profit, but i think with foreign rentals that offset can only be foreign profits.

like i say, i am not an expert, you really do need to get advice in sorting out investments before you get here, and with somone who really knows the australian financial rules and their very recent changes.

Good luck
You are allowed to keep one employment pension in the UK which will not be taxed on it's growth. if you a