tweed

Does anyone know of any strategies for minimising Oz tax paid on Uk pensions payable in Australia? I presume that the UPP process works ok but are there other ways to reduce tax?

Cheers

cordi

I don't know about minimising the Tax in Oz but if your pension is like mine then the Double Tax agreament will let you have it gross here and then if you are permenant resident in Australia you haave to pay tax like everyone .
I think if you call up the tax office they will tell you .Whenever I call them they are always very helpfull .
Also call up your pension provider.Mine is paymaster and they are great too V.V. helpful.

http://www.inlandrevenue.gov.uk/pdfs..._etc/ir304.pdf
Check this out
and this http://www.ato.gov.au/

and this http://www.ato.gov.au/individuals/co...tent/34780.htm


Hope this helps send me a mail if you can't find anything useful
Cordi

Bix

Hi Tweed,
Just put "pensions" in the search box toward top right of page.
There have been lots of threads on this topic over the last couple of weeks.

Wol

Do you have any thoughts on how to transfer the money to Oz every month?

My pension managers will remit the pension to an account in Oz for £2 per month, but then you have to accept what commission the bank there charges, and perhaps a "receiving fee".

I haven't yet come up with the best option!

jumbo

HIFX will transfer your pension monthly as received for an agreed exch rate for some period ahead. I plan to use this when in Oz.

Wol

Yes, I have their paper on the subject. I have to confess that I would rather take each month's exchange rate as it goes rather than accept a forward rate which obviously must include an "insurance" factor from their side. After all, you have to accept a change in the rate every time you renew anyway so you can't get away from it entirely.

lesleys

You can set up an offshore account, eg NatWest or HSBC, in Jersey and keep money on deposit in several currencies and switch between them. Access cash by credit card associated with account or draw cash with card. NatWest charge £120pa to include credit card and decent worldwide travel insurance, plus free insurance for excess charges on car rental - you know, when they charge $20 per day to reduce excess from $5000 to $500. You just don't have to pay that or any excess charges if you do crash.

Lesley

Ozbound7

Setting up a family trust and having your pension paid in to it may be one solution. If so you could limit your tax rate to 30%

GoodwinFS

Be carefule with family trust rules in Australia. All money has to be distributed, therefore it is a look through entity, meaning it is just like receiving money yourself anyway. Also many providers would not allow paying to anyone other than the individual.

To give you some information, superannuation (pensions) in Australia look more tax concessional sourced from Australian than the UK, dependant on the transfer value to the pension that you are eligible for.

To give you some rules and some proposed legisaltion regulations regarding pension transfers to the Australian system, please refer to the attachment.

The rules get complex and dependant on work status and age in Australia so it will depend on your specific information and circumstances.

Give me a buzz if you have any queries.

Regards
George Caredes
[email protected]