ub40fan

Hi Guys

Well as the title says, are there any ex-forces out there who have moved to oz and have transferred their pensions to an ozzie bank account?

If so, was it straightforward? We are trying to get hold of the paymaster to ask them how but they are a being a bit slow to respond!!!!

When Steve first started getting his pension they didn't tax it properly and we ended up with a large tax bill, so this time we want to get a head start so we can sort out any problems early on.

Any help will be appreciated.

Thanks

Shirley x

JAJ

If the pension is in payment, it may be easier to accumulate it in a UK bank account and transfer to Australia a few times each year.

ub40fan

Thanks for the reply

Have I understood correctly that we pay tax on it at the oz end, and it is declared on the tax return exactly the same as it would be on the tax return here

Is it easy, or am I in for another fight with the tax office?

JAJ

As I understand it, it's taxable in Australia. However if you have any UK tax due you ought to be able to get a credit.

If you still have problems, consult tax expert, issues like this are way too complex for an online forum, sorry. Your receiving well-meaning but inapplicable or wrong advice is too high.

ub40fan

Ok, thanks for your help

Shirley

hutchy

Hello I'm ex Royal Navy with a UK Armed Forces pension. I came over in Sep 2003. When I first filled in my tax return for the 2003/04 tax year I found out that even though I had paid UK Income tax on my pension I was still liable to pay Australian tax on the full amount of my pension regardless of the fact that I had paid tax on it in the UK. In 2004 I contact the Inland Revenue (Centre for Non Residents in Nottingham) and they sent me a form that would make my pension non taxable in the UK. I completed this form and then sent it on to the Australian Tax Office. They completed it and forwarded it to the UK on my behalf. I subsequently received a letter from the Inland Revenue confirming that I was not liable for UK Income tax and received a refund of tax from the date I left the UK.
I know of some people who were in the UK Armed Forces who have not declared their UK pension on their Australian tax returns and have been found out. The ATO will come after you and demand back tax from you from when you entered Australia. This can be very expensive!! One person I know did not declare and they sent him a bill for $90,000 yes $90,000 dollars. He eventually got this sum reduced to $32,000 but even so its a big sum of money to suddenly find.

Currently my pension goes into my Commonwealth bank account every month and I do not pay UK income tax. I declare my pension on my annual ATO tax return (July each year) and have to send around $7,000 to the ATO every October to cover my UK pension. Some of my friends who are ex UK forces pay their tax quarterly but I chose to pay mine annually.

Hope this helps

If you wish to contact me please PM me and I would gladly offer any info.

Regards

Terry

ub40fan

Cheers Terry

Very useful information

thanks

Shirley

dcm

[QUOTE=hutchy]Hello I'm ex Royal Navy with a UK Armed Forces pension. I came over in Sep 2003. When I first filled in my tax return for the 2003/04 tax year I found out that even though I had paid UK Income tax on my pension I was still liable to pay Australian tax on the full amount of my pension regardless of the fact that I had paid tax on it in the UK. In 2004 I contact the Inland Revenue (Centre for Non Residents in Nottingham) and they sent me a form that would make my pension non taxable in the UK. I completed this form and then sent it on to the Australian Tax Office. They completed it and forwarded it to the UK on my behalf. I subsequently received a letter from the Inland Revenue confirming that I was not liable for UK Income tax and received a refund of tax from the date I left the UK.

Thanks for this really useful info - I went into my local tax office about my military pension and they told me I still had to pay UK tax as well as Australian tax!!! I move out to the Sunshine Coast on 19th August and have just downloaded the double taxation form from the Nottingham site - Many thanks for your help

Debbie

njk435

Very useful thread - thanks.
I'd been told that military pensions were exempt tax, but I just looked at the ATO site and couldn't find anything.

Thanks again all of you.