Gaz_F

I've tried searching, but haven't found anything that answers the following questions to my satisfaction.


1. Credit Scores: Do you, as in the USA, need to build up a credit score in Australia, or is the system more like NZ? (Declaration of income and assets)


2. Is there anyone who emigrated to Australia who receives a UK public sector pension? (i.e. military, civil service etc)

If so, do you pay tax in the UK, Australia or both?


3. Can anyone point me in the direction of a website that explains how Australian mortgages work? I've used the calculators on banks and know what we can afford because of income, but I haven't seen anything asking about deposits? (We will have just over AU$50K to put down on a house.)

I haven't contacted a mortgage broker as yet because I don't want to be swamped with emails and offers over the next 12 months. We have housing arranged through the job offer for when we arrive, and that is when I plan to start mortgage hunting.

spottydog

1. Not you don't build up credit history, if fact getting credit from other sources tends to restrict mortgage borrowing as they take into account credit card limits.

2. Sorry, no idea on this.

3. Up to 80% of cost generally has no fees, after this you are generally liable for LMI which protects the lender if you default. Some companies will lend up to 95% but they can be more expensive on the interest rates. Actual amount you can borrow takes into consideration a number of items such as number of kids, income split between borrowers and number of years to retirement. Don't forget the fees involved with buying a house to, stamp duty, solicitors, building and pest etc. which can add significant dollars to the purchase price. Stamp duty varies by state so google the state you are thinking of living in

Sherlock Holmes

2) I receive a police pension. It is taxed only in Australia. Obviously you need to let HMRC know that you have left the country. At some point you will have to get a certificate from the ATO stating that you are resident in Oz for tax purposes and forward this to HMRC.

A good tax accountant here should get you an 8% offset on your foreign pension as well.

Gaz_F

Thanks for the reply; we will be leaving the UK debt free, and it will be just the wife and I as our children are all grown.

Gaz_F

Thanks for the reply.

Out of interest, did you inform HMRC you'd be emigrating before you left the UK or after arrival in Australia?

ROMFT_WO2RN

I told them after I got here via the P85. You'll also need to fill in an Australia - Individual 2003 form in order to get your pension paid tax free in the UK. It's taken them 4 months and I'll still have to submit a form R43 to claim the 4 months worth of tax back just so it can be taxed in Oz as income

Still waiting for them to sort the tax refund for the period before I left the UK (P85) as this won't be taxed in Oz (earned before tax resident here). Shold be about a grand and hoping I won't have to wait until April to bloody well claim it

Sherlock Holmes

I told them before I left. I left the country on the 2nd June. My first pension payment was 1st July and it was tax free.

I also told ATO the first week I was here and evidenced that I was resident for tax purposes in Australia.

paddyo

Gaz F...are you on PR or Temp Bus Visa? This affects your foreign income liability for the ATO.
I have just moved from Temp Visa to PR recently and will need to go through all this with my Navy pension.

paddyo

Via ATO??

ROMFT_WO2RN

Yes mate, Fill it in, send to ATO they stamp it and forward on to HMRC

They even sent me a copy of the stamped form as I requested

It's available to download on the HMRC website

paddyo

Cheers, got it.

ROMFT_WO2RN