QROPs - Charges to bring pension to AUS
#1
Forum Regular
Thread Starter
Joined: Aug 2007
Location: North of BRISBANE
Posts: 51
QROPs - Charges to bring pension to AUS
I am looking to bring my 3 UK pensions to Aus. I have been here for just under 3 years and understand I will be taxed on the amount accumulated (if any) from 2 April 2009 to the transfer date.
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
#2
Re: QROPs - Charges to bring pension to AUS
It depends on how much you are starting off with in the pot.
#3
Just Joined
Joined: Nov 2011
Posts: 20
Re: QROPs - Charges to bring pension to AUS
I am also in the process of transferring across. I too am concerned about the cost of transfers, and have now realised that the best way to avoid the charges is to arrange the transfer yourself !!!
I am NOT an expert, and if anyone would care to provide any advice to us on this thread it would be most appreciated. I believe that I need to:-
1) CETV - request a Cash Equivelant Transfer Value from the UK holders (they are required to provide at least 1 value free of charge). I've already done this and there is nothing to it
2) Westpac offer free advice. Take it. Obtain the CETV, give it to Westpac, let them run some numbers, ask all the questions in the world, but don't commit to the transfer. This is not underhand in any way, I have informed my contact in Westpact I have made no decision to transfer and there is no commitment either way from us
3) Aussie Superann Fund. Identify which superann fund you want to transfer your fund to. This is the big missing bit for me, looks like a bit of work, and this is where the CBA financial consultant would work for you, as they could advise you which fund, risk. But if you can spend enough time yourself researching a decent fund, there is enough info available on-line, without needing a financial consultant. Easy for me to say, but I have not done it yet (by the way do NOT transfer in your UK Pension to your existing aussie superann fund, otherwise the whole fund, including both the transfer and the existing aussie contributions become a QROPS
4) Set up your new superann membership, informing them that they should expect a transfer from UK, and it must be a QROPS transfer.
5) Request cheque made out to your superann fund from your nominated superann provider
6) Tax implications. All tax offices, including the Aussie Tax Office, are required to provide help and support. Use them, to work out how much you owe them for the grown in the fund for the past 2 years.
If anyone can provide any advice to above, would be much appreciated
I am NOT an expert, and if anyone would care to provide any advice to us on this thread it would be most appreciated. I believe that I need to:-
1) CETV - request a Cash Equivelant Transfer Value from the UK holders (they are required to provide at least 1 value free of charge). I've already done this and there is nothing to it
2) Westpac offer free advice. Take it. Obtain the CETV, give it to Westpac, let them run some numbers, ask all the questions in the world, but don't commit to the transfer. This is not underhand in any way, I have informed my contact in Westpact I have made no decision to transfer and there is no commitment either way from us
3) Aussie Superann Fund. Identify which superann fund you want to transfer your fund to. This is the big missing bit for me, looks like a bit of work, and this is where the CBA financial consultant would work for you, as they could advise you which fund, risk. But if you can spend enough time yourself researching a decent fund, there is enough info available on-line, without needing a financial consultant. Easy for me to say, but I have not done it yet (by the way do NOT transfer in your UK Pension to your existing aussie superann fund, otherwise the whole fund, including both the transfer and the existing aussie contributions become a QROPS
4) Set up your new superann membership, informing them that they should expect a transfer from UK, and it must be a QROPS transfer.
5) Request cheque made out to your superann fund from your nominated superann provider
6) Tax implications. All tax offices, including the Aussie Tax Office, are required to provide help and support. Use them, to work out how much you owe them for the grown in the fund for the past 2 years.
If anyone can provide any advice to above, would be much appreciated
#4
Just Joined
Joined: Nov 2011
Posts: 20
Re: QROPs - Charges to bring pension to AUS
Just to add to above, point 5 should read
5) Request to your UK pension holders, that they make a cheque out, equal to the sum of the CETV, to be made out to your new aussie superann provider
5) Request to your UK pension holders, that they make a cheque out, equal to the sum of the CETV, to be made out to your new aussie superann provider
#5
BE Forum Addict
Joined: Mar 2004
Location: Sydney
Posts: 1,628
Re: QROPs - Charges to bring pension to AUS
ING didn't charge me anything to transfer my UK pension pot to them, I just filled in the form and let them do the rest.
For mine by the time I transferred it over with the GFC and the exchange rate change my value was actually a bit less than when I moved over.
Don't forget to take into account the fees you are paying in the UK when comparing them.
For mine by the time I transferred it over with the GFC and the exchange rate change my value was actually a bit less than when I moved over.
Don't forget to take into account the fees you are paying in the UK when comparing them.
#6
Forum Regular
Joined: Jan 2009
Posts: 35
Re: QROPs - Charges to bring pension to AUS
I am looking to bring my 3 UK pensions to Aus. I have been here for just under 3 years and understand I will be taxed on the amount accumulated (if any) from 2 April 2009 to the transfer date.
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
#7
Victorian Evangelist
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
Re: QROPs - Charges to bring pension to AUS
If you are the Simon King that used to live at Leigh Delamere then we used to go to school together.
BB
BB
#8
Forum Regular
Joined: Feb 2007
Location: Narangba
Posts: 249
Re: QROPs - Charges to bring pension to AUS
I did mine myself, I used Australian Super, they sent me the forms and I signed them and they did the rest.
I was very lucky in that it was over the six month period when I transferred mine but my fund had dropped by then so paid no tax
I was very lucky in that it was over the six month period when I transferred mine but my fund had dropped by then so paid no tax
#9
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: QROPs - Charges to bring pension to AUS
If you have been abroad more than 5 years when you request the transfer their is NO requirement to report back to the UK by your new super fund in Oz so if away from the UK for more than 5 years you can use your current Super fund with no detriment (providing it's QROPS Compliant).
#10
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: QROPs - Charges to bring pension to AUS
As you have to pay CGT on the increase can you claim the loss you made against future CG. (as it's a super transfer I don't know????)
#11
Just Joined
Joined: Jul 2008
Location: Brisbane
Posts: 15
Re: QROPs - Charges to bring pension to AUS
KiwiPaul - there is no CGT on super transfers as far as I am aware!!
#12
Just Joined
Joined: Jul 2008
Location: Brisbane
Posts: 15
Re: QROPs - Charges to bring pension to AUS
If you have been abroad more than 5 years when you request the transfer their is NO requirement to report back to the UK by your new super fund in Oz so if away from the UK for more than 5 years you can use your current Super fund with no detriment (providing it's QROPS Compliant).
#13
Just Joined
Joined: Jul 2008
Location: Brisbane
Posts: 15
Re: QROPs - Charges to bring pension to AUS
I am looking to bring my 3 UK pensions to Aus. I have been here for just under 3 years and understand I will be taxed on the amount accumulated (if any) from 2 April 2009 to the transfer date.
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
I have read the various comments on the forum, and my only question relates to charges.
The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.
Do these charges seem fair and reasonable, and comparable with other peoples experiences??
Thanks
J
#14
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: QROPs - Charges to bring pension to AUS
Yes their is if you don't transfer within 6 months of arrival.
The CGT tax is based on the increase in value of the pension since you arrived in Oz. Work out the value in Oz $ when you arrived and work it out in Oz $ when it's transferred, using the exchange rates on the given dates.
The CGT tax is based on the increase in value of the pension since you arrived in Oz. Work out the value in Oz $ when you arrived and work it out in Oz $ when it's transferred, using the exchange rates on the given dates.
#15
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: QROPs - Charges to bring pension to AUS
Don't assume if you pay for advise you are getting the correct advise. One Pension Transfer Specialist who has posted on here claims that you should work out the gain in pounds and then convert to Oz dollars using the transfer date exchange rate for CGT purposes which is WRONG according to the ATO tax site.
He also claimed most Specialists do it this way and so he has been costing Expats thousands in extra tax.