news just in re transferring uk pensions
 

my agent sent me this snippet of info recently - thought i would share with all those who are planning to transfer their UK pension to oz!

" You need to be aware about a new rule affecting UK pensions transferred to a Aussie pension provider. From April 1st this year the Aus government will tax the 'transfer value' of any occupational or private scheme 'fund' transferred into Aus at a rate of 40% !!! So leave any pensions you have where they are, here in the UK!!

hope it makes sense and helps you folk!

regards

vb2

Re: news just in re transferring uk pensions
 

no way, thats shocking!!! thaks for that valuble info though, i think it'll pee a lot of people off though.

ta,

deb

Re: news just in re transferring uk pensions
 

Would that percentage also apply to my parents pensions that they are currently receiving?

Should they just continue to get their pensions paid into a UK account and then get it transfered to an account in Oz??

Any info would be a great help to me.

Cheers
Jane

Re: news just in re transferring uk pensions
 

It will not affect pensions already being paid but they will be taxed on them anyway, wherever they are kept, as you have to pay tax on worldwide income.

G

Re: news just in re transferring uk pensions
 

Has April Fools day come early this year?

Re: news just in re transferring uk pensions
 

Hi

If that is the case, then pensions might as well just stay in the UK and then pay tax once income is received in x number of years.

Was this information from your agent or a financial adviser?

Cheers

AnitaB

Re: news just in re transferring uk pensions
 

Either way, a reference to the ATO website would be helpful.




Jeremy

Re: news just in re transferring uk pensions
 

I too can find nothing about this on the ato website. Please could you ask your agent where they got this info from.

Cheers

Buzzy

Re: news just in re transferring uk pensions
 

I heard this also through my adviser as I am currently transferring mine. I believe it will only apply if you start the transfer after the April date. Anything that is in progress now should be exempt......hopefully.

Re: news just in re transferring uk pensions
 

I don't believe it.

Re: news just in re transferring uk pensions
 

Let's have an official reference please!

Re: news just in re transferring uk pensions
 

I too am a bit sceptical.
Why would the ATO want to put people off bringing their pensions to Aus ?
Makes no sense at all.


BTW...is that you Rog ?

Re: news just in re transferring uk pensions
 

The seminar Commonwealth Bank ran before Xmas explained why you SHOULD move your money before April for the same reason. (Don't ask me to explain it though!)

Anyway, you have to complete the transfer by then so it is quite unlikely you would push it through in time.

Re: news just in re transferring uk pensions
 

from my agent - he recommends leaving uk pensions where they are, we dont have any anyway so it doesnt really apply to us, but i would devastated if i did - just another way for government to con money out of people

regards

vb2

Re: news just in re transferring uk pensions
 

There are changes coming but I forget what they are,40% is a UK taxband rather than an aus one.On arrival here it may be worthwhile continuing to pay into the UK pension fund as you need 44 yrs to obtain a full pension,11 yrs gives you 25% of a UK pension.THe aus pension is means tested,the 9% super we have here is a means to ease the pension costs in the future.The last actuarial figures I saw were that anyonel having the 9% for 40 yrs would have a pension of 23,000 bucks in todays dollars,made up of a 50-50 mix of drawdown from super and part pension.The drawdown from super and a full UK pension may make you better off,nobody can forecast the future.From memory it is a class 3 stamp and is around 400 quid a year.Good luck.