bert-doozer

Can anyone enlighten me as to what happens with your lump sum when you bring it into Oz? In UK it is tax free, but is it taxed in Oz & if so at what rate?

Or can anyone point me in a direction with the ATO?

Thanks

Stu

Nicstids

As far as we are aware (hubby is in the Navy) it's just like any other lump sum you bring into Oz e.g. proceeds from a house sale. If you leave it in a UK bank a/c in the hope that the exchange rate improves, then you could be liable on any gain that the money makes from the time that you become Aus resident. For example, if you move out to Oz and the exchange rate is 2.4 and then 6 months later you decide to move the money across because the rate's gone up to 2.6, you could be liable to tax on the increase.

At least that's my understanding. Hubby has just had a meeting with somebody from the White Ensign Association regarding his pension. Don't know if you're in the Navy but it might be worth contacting them?

bert-doozer

Thanks for that, but not so sure its as simple as that with lump sums from pensions. What have the White Ensign Assosiation told your hubby ref this??

I think the only people that can give us a definative answer is the ATO, who i will call next week. :scared:

Many thanks

Stu

Nicstids

Will have to find out on Monday as he's away at the mo.Good luck with the ATO - let me know if you find out anything useful.

Nicola

ali south

please can you post the answer as we are in the same situation
Thanks

bert-doozer

Will do if i can get any sense out of them

Stu

JAJ

There should be no liability to income tax on the lump sum in Australia provided it is received before you become Australian tax resident.

As Nicola says, in that circumstance it's just like a house sale before you move.

The ongoing pension will be subject to Australian income tax, with a likely credit for any UK tax payable. I don't know whether there are any additional deductions allowable in Australia on foreign pension income, or whether there are special rules for government pensions. This is an area where professional advice is required.


Jeremy

bert-doozer

Jeremy thats where the problem possibly lies. We are coming out in Aug & my pension & lump sum will be paid to me in late October!

We might have to delay our arrival until after its been paid.

What do you think?

Stu

JAJ

Get some professional advice.




Jeremy

bert-doozer

Can you recomend anyone please?

Thanks

Stu

JAJ

Not from personal experience, but I know Alan Collett does some work in this area.
http://www.gomatilda.com


Jeremy

bert-doozer

Jeremy,

Many Thanks

Stu