QROPs - Charges to bring pension to AUS
Mar 20th 2012, 6:56 am
#16
Just Joined
Joined: Jul 2008
Location: Brisbane
Posts: 15
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.
Mar 20th 2012, 7:06 am
#17
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: QROPs - Charges to bring pension to AUS
Here is the link to the thread on BE
http://britishexpats.com/forum/showthread.php?t=745134
Example 7
In June 2005, Hassan left Australia and worked overseas. During this time, he contributed to a foreign superannuation fund. In July 2008, Hassan returned to Australia and immediately again became an Australian resident for tax purposes. At this time, his foreign super interest was valued at $12,000.
In February 2009, Hassan decided to transfer the balance from his foreign super fund to himself. The value of his super interest was then $13,500, of which $1,500 was earned since he became an Australian resident. The $1,500 represents applicable fund earnings which Hassan is required to declare in his income tax return. Hassan does not have to include the $12,000 in his assessable income.
Here is the link http://www.ato.gov.au/individuals/co....htm&page=7&H7
Last edited by Kiwipaul; Mar 20th 2012 at 7:16 am.
Apr 22nd 2012, 10:09 am
#18
Forum Regular
Thread Starter
Joined: Aug 2007
Location: North of BRISBANE
Posts: 51
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
Apr 22nd 2012, 10:37 am
#19
Just Joined
Joined: Jul 2008
Location: Brisbane
Posts: 15
Re: QROPs - Charges to bring pension to AUS
The fees quoted do sound high - what exactly does the upfront fee cover? Have you contacted other providers for similar quotes? If the upfront fee is purely for getting the money over here, you can do that part yourself.
As for the annual fees - shop around would be my best advice. Find out waht exactly is covered and what the charge would be if the transfer wasn't QROPS.
As for the annual fees - shop around would be my best advice. Find out waht exactly is covered and what the charge would be if the transfer wasn't QROPS.
Apr 22nd 2012, 5:59 pm
#20
BE Enthusiast
Joined: Feb 2012
Location: York
Posts: 323
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
Overall, if I were you I'd be looking at other providers and getting one with much lower fees (sorry don't know what CPA is so that of course may be particularly significant)
Apr 22nd 2012, 6:11 pm
#21
BE Enthusiast
Joined: Feb 2012
Location: York
Posts: 323
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 Yes this is correct. People with occupational (final salary) pensions should be aware that they will only have a 3 month guarantee period on their TV and may get charged a lot for a new one if everything isn't processed within that period
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 Excellent idea
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 Can you clarify what this means - I've processed a lot of TVs from the UK end but wasn't aware of any negative implications within Aus for QROPS status - am intrigued - is it something to do with the Aussie fund not allowing the whole fund to be taken as cash? Though it is the whole scheme that's QROPS not just the member
4) Set up your new superann membership, informing them that they should expect a transfer from UK, and it must be a QROPS transfer. It's not the TV that's QROPS it's the receiving (Aussie) scheme and they must apply to HMRC - your UK scheme wont release the funds without evidence that the scheme is a QROPS
5) Request cheque made out to your superann fund from your nominated superann provider Yup - though the UK scheme is gonna need forms completing before they'll release the funds - and they'll probably do it by bank transfer
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. Good idea - you'll need the TV at the first date too, which an insurer will easily be able to provide - may be more complicated if your UK scheme is a Final salary
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 Yes this is correct. People with occupational (final salary) pensions should be aware that they will only have a 3 month guarantee period on their TV and may get charged a lot for a new one if everything isn't processed within that period
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 Excellent idea
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 Can you clarify what this means - I've processed a lot of TVs from the UK end but wasn't aware of any negative implications within Aus for QROPS status - am intrigued - is it something to do with the Aussie fund not allowing the whole fund to be taken as cash? Though it is the whole scheme that's QROPS not just the member
4) Set up your new superann membership, informing them that they should expect a transfer from UK, and it must be a QROPS transfer. It's not the TV that's QROPS it's the receiving (Aussie) scheme and they must apply to HMRC - your UK scheme wont release the funds without evidence that the scheme is a QROPS
5) Request cheque made out to your superann fund from your nominated superann provider Yup - though the UK scheme is gonna need forms completing before they'll release the funds - and they'll probably do it by bank transfer
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. Good idea - you'll need the TV at the first date too, which an insurer will easily be able to provide - may be more complicated if your UK scheme is a Final salary
If anyone can provide any advice to above, would be much appreciated
May 29th 2012, 8:17 pm
#22
Just Joined
Joined: Apr 2005
Posts: 16
Re: QROPs - Charges to bring pension to AUS
No problem letting an oz fund do the paperwork.
However, seek advice if your fund is more than A$450k as oz super funds do not accept cheques above this amount as it contravenes the $450 cap. They send the cheque back to the uk, where it is enveloped in a can of worms as Uk fund has closed your account!
We found a solution before it became a problem by seeking specialist advice before we started the process.
Mickjoebill
However, seek advice if your fund is more than A$450k as oz super funds do not accept cheques above this amount as it contravenes the $450 cap. They send the cheque back to the uk, where it is enveloped in a can of worms as Uk fund has closed your account!
We found a solution before it became a problem by seeking specialist advice before we started the process.
Mickjoebill
Jul 30th 2012, 10:25 am
#23
Forum Regular
Joined: Feb 2008
Location: Kallaroo, West Australia
Posts: 49
Re: QROPs - Charges to bring pension to AUS
No problem letting an oz fund do the paperwork.
However, seek advice if your fund is more than A$450k as oz super funds do not accept cheques above this amount as it contravenes the $450 cap. They send the cheque back to the uk, where it is enveloped in a can of worms as Uk fund has closed your account!
We found a solution before it became a problem by seeking specialist advice before we started the process.
Mickjoebill
However, seek advice if your fund is more than A$450k as oz super funds do not accept cheques above this amount as it contravenes the $450 cap. They send the cheque back to the uk, where it is enveloped in a can of worms as Uk fund has closed your account!
We found a solution before it became a problem by seeking specialist advice before we started the process.
Mickjoebill
Sep 20th 2012, 12:20 am
#24
Just Joined
Joined: Sep 2012
Location: Noosa Heads, Queensland
Posts: 4
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
If your transfer was over 6 months from the point of leaving the UK then you need to declare this amount (only the gain!).
I managed to get my transfer done through Australian Super- they made no charges! but they did insist that the QROPS account was a seperate account from my other employer super account. I am not sure this is correct and am still trying to gain clarity on this issue.
It is best ( in my view but this may be different for you) to elect to transfer your tax liability to your NEW QROPS provider- this way they will pay tax on it from your transfer proceeds and it will be at the concessional rate of 15%. To do this you need to complete an "Australian Taxation Office Election Notice" these are downloadable forms available on line or through ATO or your super provider.
Hope this helps.
Jan 5th 2013, 8:36 am
#25
BE Enthusiast
Joined: Jun 2003
Location: Melbourne, Victoria
Posts: 524
Re: QROPs - Charges to bring pension to AUS
I managed to get my transfer done through Australian Super- they made no charges! but they did insist that the QROPS account was a seperate account from my other employer super account. I am not sure this is correct and am still trying to gain clarity on this issue.
It is best ( in my view but this may be different for you) to elect to transfer your tax liability to your NEW QROPS provider- this way they will pay tax on it from your transfer proceeds and it will be at the concessional rate of 15%. To do this you need to complete an "Australian Taxation Office Election Notice" these are downloadable forms available on line or through ATO or your super provider.
Hope this helps.
It is best ( in my view but this may be different for you) to elect to transfer your tax liability to your NEW QROPS provider- this way they will pay tax on it from your transfer proceeds and it will be at the concessional rate of 15%. To do this you need to complete an "Australian Taxation Office Election Notice" these are downloadable forms available on line or through ATO or your super provider.
Hope this helps.
