robo43

Hi All
Looking for info on what to do with frozen company pensions, do we leave them? or transfer them when we have joined a scheme in Australia? any advice gratefully received.

Cheers
Robo

sa-redback

I would like to know the answer to this question too as mine is a frozen final salary pension.

hedgehog

Hello All,

I would also be grateful of any advice as I plan to freeze my pension prior to travelling to Australia in August/September 2006.

Thanks

Mr Hedgehog

CathnPaul

Snap!!! we would like to know too!!

Due to the changes in april it seems that its extremely far and few between (if any) experiences will be able to be shared.

Prism xpat were looking to charge us £100 for a consultation...and £150 for a full consultation which would include our property as well. Thought we would hang on for a bit to see how other people go on first.

micged

I would also like any advice - especially about final salary teachers' pensions if anyone has any knowledge.
thanks
Michelle

kiltedjedi

Hi I would be grateful if anyone has any info as well

Thanks

thebears

In relation to the transfer of your superannuation savings to Australia, the following is required:

1. Contacting the UK fund to see if they will allow a transfer and if any taxation liability will arise in the UK upon transfer.

2. Obtain the necessary paperwork to facilitate the transfer. Some UK funds will require specific paperwork to be completed.

3. Obtain details of the balance of your fund now and on the date of the day prior to you becoming an Australia resident (known as your relevant day).

4. Determine the most suitable means for paying the taxation liability on the assessable part of the payment treated as a taxable contribution to the Australian superannuation fund. Complete the necessary documentation to elect how the assessable component is to be taxed. Note that a six month window period exists – during this period the transfer can be tax free.

Please note we can facilitate the above steps on your behalf.

Under Australian legislation, you will pay tax on the assessable amount of the monies transferred into your superannuation account from the UK. The assessable amount is generally the growth component of the benefit that accrued from the time you became a resident of Australia, this is determined as follows;

Growth Amount = Transfer - Accumulated + Additional x resident days + Previously

Amount entitlement contributions total days exempt

Amounts

As of 1 July 2004, you can elect to have the assessable part of the payment treated as a taxable contribution in your complying Australian superannuation fund (15% tax rate) rather than paying tax on the assessable amount at your Marginal Tax rate (up to 46.5% including Medicare levy) and being personally liable for the taxation.

Please note that a six month window period exists where benefits are treated as an exempt foreign termination payment and are tax free if the benefits are transferred to Australia within 6 months of becoming a resident.

thebears

These people are worth talking too

OzPlan Financial Services Pty Ltd
222 Albert Rd, South Melbourne 3205
Phone: 03 9682 9800
Fax: 03 9682 6911
Mobile: 0413 188 852
email: [email protected]