Yes

Any overseas income is liable for tax in Australia.

G

I asked this question before and got no response
Do you pay tax on an ill health retirement pension in the UK or do you get exemption and pay tax on it in Oz.
I will make the necessary enquiries but not until we get our visa.
Whatever the answer it will not stop us going.
Any thoughts would be much appreciated.
Thanks

Thanks Grayling. Any ideas on the percentage?

I've started looking at some (but by no means all) super funds. I think that the one offered by Virgin seems to be quite good value, with minimum operating costs. Have a look at the web site - Richard Branson was in the Aussie news just lately after it was launched, claiming that he planned to start a revolution in australian super funds etc etc.

I think that you can make contributions of your own on top of what your employer pays in, and then I think that the government may make additional co-contributions in certain circumstances, but I havn't yet found out what they are yet. I am keen to find out if you can continue making personal payments into your fund if you're not living or working in Australia, incase I have to come back to the UK for any protracted amount of time - parental illness etc.

Also, with an Aussie super, do you have to buy an annuity at maturity, like you do in the UK? Or does it just provide a fund that you just dip into as and when you see fit?

S

You can make additional contributions yourself, the government will top-up if you make these and your salary is less than approx $50K. I think the amont they pay in depends on your contributions and your annual salary. I would guess though that alot of people will earn too much to gain from this.

I have been told that you can only contribute to your aussie super if you are working overseas with an aussie employer - could be wrong but that was what I was told.

You don't have to buy an annuity over here - it is alot better. I am of the impression you are free to dip in - to invest say in property etc.

This is what attracts me to the Australian system, and is why I'm keen to make Australia part of my retirement plans.

My parents were planning to retire a couple of years ago, but the annuity rates were shocking, so they had to carry on working and hope that the rates got better. I think it is desperately unfair that you HAVE to buy an annuity at the prevailing rate in the UK. It seems that it can mean the difference between prosperity or destitution...

S

I agree it is an outrage that after paying into a pension plan all your working life you get no say on how the fund will provide for your retirement. Obviously we all understand that it is good to have some regulation over them ie. not to be able to cash in fund and then party it away thus becoming a burden on the state! But come on there should be more options available. We intend to put most of our money into investment properties and put minimum into pensions. A rental income will go up with inflation and if you get fed up with managing the property you can always sell up and look at other options. I guess it is always best to spread your bets an not put all your eggs in one basket.

The whole area is very complicated and they change rules every 5 mins,if you have over $200,000 then a SMSF will probably be best but compliance costs can be $2-4000 per year,(to your accountant ,wonder why he advised an SMSF)the pension has an assets and income test and whichever gives the smallest pension is the one that applies.For couples the income test is $60,000 per year,if you get $1 of pension per year then you get concession cards (cheaper rates ,telephone charges etc),the asset test is around $500,000,which will be deeemed to be earning around 5% per year ,so they get you on the income test to reduce your pension a shit system ,penalise people for trying to get ahead.Income splitting etc super splitting for the $130000 (indexed each year) tax free drawdown and complying income streams can reduce both income and asset levels.A very complicated system so you need to spend time learning it or pay an expert. On the 9% super at end of last year there was around $800 billion in funds under management from which those experts took $10 billion,no wonder financial planning is the boom industry of the century.In 20 years time god knows what it will look like,start learning about financial things now is the best advice i can offer.

Sorry, no spare thoughts today...