FIB rules for 457ie - pensions
 

As far as I am aware 457ie holders have a much easier time from the Aus Foreign Investment Board than permanent visa holders (something has to be!) as we are excempt from foreign income taxation (growth, CGT, income) up until the point of applying for permanent residency. The only exception to this was pensions which had to be transferred within 6m of arrival after which excemption was lost.

This was meant to be rescinded in June/July of this year but never made it onto the statute books due to lack of time - does anyone know whether it has subsequently become law and if not is there a new target date?

Re: FIB rules for 457ie - pensions
 

you have cheered me up again, thanks!. was told today by the ac that they have not received our meds and pol checks i sent 2 weeks ago. they have been signed for though so must be stuck in the system.
thanks again
kismet

Re: FIB rules for 457ie - pensions
 

Hello Jonothan.

I think you're a little confused as the FIRB doesn't oversee taxation in Australia - that's the responsibility of the Australian Taxation Office. The FIRB oversees investment activities in Australia, particularly by those who are not Australian citizens or permanent residents.

The key elements of the tax law that affect investments and pension funds located outside Australia by those who are Australian tax residents are the Foreign Investment Fund Rules and section 27CAA of the Income Tax Assessment Act 1936. Importantly for 457-IE visa holders, the FIF rules have an exemption for those who are in Australia "temporarily" - which means those who are in Australia on a visa that expires 4 years or less from the date of their "initial" visa, and who have not applied for permanent residency.

By contrast Section 27CAA and what is effectively an ATO concession attacks pension fund transfers more than 6 months after a person becomes a tax resident of Australia - and you should work on the basis that you become a tax resident if you move to Australia on a long term visa (such as a 457-IE) or permanent visa. It was the section 27CAA provisions that were the subject of a recent Senate Select Committee review - legislation following the recent publishing of the Committee Report may well follow next year.

There is more info about the Senate Report into section 27CAA here:
http://www.gomatilda.com/news/article.cfm?articleid=211

Hope all this helps.