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Adding Australian funds to QROPS

Adding Australian funds to QROPS

Old Sep 7th 2012, 8:03 am
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Default Adding Australian funds to QROPS

Can anyone help?

I moved my UK pension fund over to Australian Super specifically so I could add to it from my Australian money. I'm not working and so I can't make regular contributions but thought in lumping them together I would be sure to cover the admin fees even though I'd only be adding in small amounts.

Australian Super were happy to accept my UK money and also a further contribution I made.

Now they are telling me they made a mistake and are asking me to open a second account so the QROPS will be kept seperate from any Australian contributions I make.

Has anyone got a QROPS account they can also add Australian funds to?
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Old Sep 8th 2012, 7:09 am
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Default Re: Adding Australian funds to QROPS

Originally Posted by carzinoz View Post
Can anyone help?

I moved my UK pension fund over to Australian Super specifically so I could add to it from my Australian money. I'm not working and so I can't make regular contributions but thought in lumping them together I would be sure to cover the admin fees even though I'd only be adding in small amounts.

Australian Super were happy to accept my UK money and also a further contribution I made.

Now they are telling me they made a mistake and are asking me to open a second account so the QROPS will be kept seperate from any Australian contributions I make.

Has anyone got a QROPS account they can also add Australian funds to?
I am open to correction but I seem to remember that as part of the rules the UK stipulates that qualifies an account as QROPs, the account must be seperate and remain so for a period (possibly 5 years).
I am with Australian Super and I have 2 seperate accounts (I was told up front).
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Old Sep 8th 2012, 10:59 pm
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Default Re: Adding Australian funds to QROPS

I have a self-managed super fund, which is QROPS rated, and add my super into it without any problems. I've been here for 4 years.
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Old Sep 8th 2012, 11:11 pm
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Default Re: Adding Australian funds to QROPS

My OH has a QROPS fund which is just reaching its 5th anniversary. If and at the moment it is a big if he still has a job after Cando Newman delivers his budget on Tuesday he will be able to transfer it to his Q Super after the 5 years are up.
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Old Sep 9th 2012, 12:43 am
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Default Re: Adding Australian funds to QROPS

Originally Posted by carolinephillips View Post
I have a self-managed super fund, which is QROPS rated, and add my super into it without any problems. I've been here for 4 years.
Hi Caroline,

Would you mind telling me who your super fund is with?

Thanks
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Old Sep 20th 2012, 1:53 am
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Default Re: Adding Australian funds to QROPS

Originally Posted by carzinoz View Post
Can anyone help?

I moved my UK pension fund over to Australian Super specifically so I could add to it from my Australian money. I'm not working and so I can't make regular contributions but thought in lumping them together I would be sure to cover the admin fees even though I'd only be adding in small amounts.

Australian Super were happy to accept my UK money and also a further contribution I made.

Now they are telling me they made a mistake and are asking me to open a second account so the QROPS will be kept seperate from any Australian contributions I make.

Has anyone got a QROPS account they can also add Australian funds to?
I too am somewhat confused by the need to have 2 separate accounts with Australian Super?
I think they may be a bit unclear of the legislation (but then i may be wrong!) I have been away from UK for well over 5 years and so the reporting period is well expired. From what i read it seems that so long as the fund is QROPS compliant it is ok to both transfer funds into and also to add employer or any other funds into!!
And yet i too have been told by Australian Super that i have to keep two separate accounts and that i cannot combine them to both save fees and benefit in any other way from the combined total of both....
I would welcome anyone with knowledge of these regulations to respond.....i have tried to speak with Australian Super, but i feel they too are just a bit lost and bamboozled with the legislation and are insisting that the accounts are separate just to keep things easy for themselves (not to mention so they can make 2 admin fees each period!)
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Old Sep 20th 2012, 1:58 am
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Default Re: Adding Australian funds to QROPS

Originally Posted by carzinoz View Post
Hi Caroline,

Would you mind telling me who your super fund is with?

Thanks
Caroline,
I would welcome any advice on setting up my own SMSF that complies with QROPS. Is this hard to achieve?
If i have already transferred to Australian Super (since it was QROPS compliant) then can i then rollover this fund and my general employer fund into one single account with another super company?
I wish to get it combined into one figure and 1 account and it seems i cant do this with Australian Super.
If another super provider allows it then maybe the answer is to move it - move both accounts and move it to one single account. I guess i can always move it back at a later date if i prefer Australian Super!
Any thoughts here?
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Old Sep 21st 2012, 12:02 am
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Default Re: Adding Australian funds to QROPS

Some of you are working with old info as the rules changed in the uk on April 2012 and now the time is 10 years (instead of 5) and a lot more conditions. I suspect it is now impossible to combine a uk pension with any Australian pension due to the numerous requirements of the UK reg.

Do a search for this doc QROPS guidance – April 2012

Problem is a Oz pension can be drawn when you reach 55 (which I suspect conflicts with UK rules) and having just one pension pot notifying the UK gov of payments would be a nightmare for the Oz pension company managing the pension, trying to work out which payments came from the original QROPS (and so needs to inform UK gov) and which came from native Oz contributions.

I suspect ANY Oz pension company who say they can combine them doesn't understand the new reg from the UK.
If you made the transfer before the reg change Apr 2012 you MIGHT be ok but it is so complicated now i wouldn't bet on it.
I myself have given up on transferring as I believe the Oz $ will weaken over the long term and so my pension will increase in value IMHO.
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Old Sep 21st 2012, 7:58 am
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Default Re: Adding Australian funds to QROPS

Kiwipaul,
Thanks for that info. It would appear that even though a transfer that was made prior to 06/04/12 the new reporting rules will still apply to these. Ie any payment (this includes a transfer to a different fund) needs to be reported to HMRC if it occurs within a 10 year (used to be 5) period of the original transfer that brought the funds from the UK.
This I believe may be why the Super scheme managers here in Oz are not keen to combine these funds with any existing super funds even though existing super funds may well (they are in my case) be in a QROPS compliant fund.
However, I can see nothing in this legislation that states that the transferred funds can not be combined with any other existing or ongoing funds.

It would appear maybe they are not clear of this legislation and are being over cautious. This however is not in the best interests of the clients and I would welcome any comments or clarification in this regard.

I have asked my company several times if I can combine my funds into 1 single account but each time get a somewhat fuzzy but negative response.
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Old Sep 22nd 2012, 3:41 am
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Default Re: Adding Australian funds to QROPS

Raybin
You've got to realise that anyone you speak to here in Oz is NOT going to be familiar with legislation enacted by a gov in the UK. I'm willing to bet that 99% of the people you speak to in any Oz Super scheme have never heard of QROPS, let alone the changes that happened 6 months ago.
Anyone who says they are familiar just ask them how many years they have to keep informing the UK gov regarding payments (10 years is correct ans).
Most of these people are salesman and just want their commission and will feed you the info you want to hear to close a deal (and get their commission).

Their will be a few exceptions to this but generally you are going to find it very difficult getting accurate ans.

One way to combine your super into one super account might be to agree to make the whole fund QROPS compliant (including your Oz contributions).

To me the disadvantages of this would be enormous and I wouldn't even consider it
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Old Nov 30th 2012, 10:48 am
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Default Re: Adding Australian funds to QROPS

Any advise on whether it is better to keep my pension in the UK and get about 8000 pounds PA, annual increases are at the trustees discretion or bring over to OZ approx 230k AUD. Problem is I will be 65 soon and have been here since 1987 so the tax on the growth component will be a factor to consider.
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Old Nov 30th 2012, 11:03 am
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Default Re: Adding Australian funds to QROPS

Do you have to buy an annuity in the UK (ie take an income)? Or can you transfer the capital to another pension fund in the UK or set up a SIPP? I just thought there may be other options to consider.
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Old Dec 11th 2012, 12:17 am
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Default Re: Adding Australian funds to QROPS

I think you need to bear in mind that keeping your QROPS funds separate from your accumulating funds may be in your best interests anyway. The funds you transferred are considered non-concessional and have already been subject to tax - and will not be taxable on their withdrawal (except in relation to any investment gains); for example if you go to a transition to retirement pension. If you mix the two funds together then you may attract more tax if you wish to make an early (pre 60) withdrawal or with a transition to retirement pension. It's a bit complicated to explain - a discussion with a financial planner, perhaps one of those employed by AustralianSuper, might be a good idea.
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