incircles

I am looking to bring my 3 UK pensions to Aus. I have been here for just under 3 years and understand I will be taxed on the amount accumulated (if any) from 2 April 2009 to the transfer date.

I have read the various comments on the forum, and my only question relates to charges.

The CBA will be charging $3729 for upfront costs, and then $2,767 pa for the five years my pension is in a QROPs. I will also be paying $61 pa to the CBA financial Consultant. I feel that my pension will be seriously erroded with these charges.

Do these charges seem fair and reasonable, and comparable with other peoples experiences??

Thanks

J

NedKelly

It depends on how much you are starting off with in the pot.

GoodToBeInPerth

I am also in the process of transferring across. I too am concerned about the cost of transfers, and have now realised that the best way to avoid the charges is to arrange the transfer yourself !!!

I am NOT an expert, and if anyone would care to provide any advice to us on this thread it would be most appreciated. I believe that I need to:-

1) CETV - request a Cash Equivelant Transfer Value from the UK holders (they are required to provide at least 1 value free of charge). I've already done this and there is nothing to it

2) Westpac offer free advice. Take it. Obtain the CETV, give it to Westpac, let them run some numbers, ask all the questions in the world, but don't commit to the transfer. This is not underhand in any way, I have informed my contact in Westpact I have made no decision to transfer and there is no commitment either way from us

3) Aussie Superann Fund. Identify which superann fund you want to transfer your fund to. This is the big missing bit for me, looks like a bit of work, and this is where the CBA financial consultant would work for you, as they could advise you which fund, risk. But if you can spend enough time yourself researching a decent fund, there is enough info available on-line, without needing a financial consultant. Easy for me to say, but I have not done it yet (by the way do NOT transfer in your UK Pension to your existing aussie superann fund, otherwise the whole fund, including both the transfer and the existing aussie contributions become a QROPS

4) Set up your new superann membership, informing them that they should expect a transfer from UK, and it must be a QROPS transfer.

5) Request cheque made out to your superann fund from your nominated superann provider

6) Tax implications. All tax offices, including the Aussie Tax Office, are required to provide help and support. Use them, to work out how much you owe them for the grown in the fund for the past 2 years.

If anyone can provide any advice to above, would be much appreciated

GoodToBeInPerth

Just to add to above, point 5 should read

5) Request to your UK pension holders, that they make a cheque out, equal to the sum of the CETV, to be made out to your new aussie superann provider

spottydog

ING didn't charge me anything to transfer my UK pension pot to them, I just filled in the form and let them do the rest.

For mine by the time I transferred it over with the GFC and the exchange rate change my value was actually a bit less than when I moved over.

Don't forget to take into account the fees you are paying in the UK when comparing them.

simonking

Sounds like a rip-off. Do it youself - its not difficult.

Buzzy--Bee

If you are the Simon King that used to live at Leigh Delamere then we used to go to school together.

BB

bobbyfaescotland

I did mine myself, I used Australian Super, they sent me the forms and I signed them and they did the rest.

I was very lucky in that it was over the six month period when I transferred mine but my fund had dropped by then so paid no tax

Kiwipaul

If you have been abroad more than 5 years when you request the transfer their is NO requirement to report back to the UK by your new super fund in Oz so if away from the UK for more than 5 years you can use your current Super fund with no detriment (providing it's QROPS Compliant).

Kiwipaul

As you have to pay CGT on the increase can you claim the loss you made against future CG. (as it's a super transfer I don't know????)

Dondy

KiwiPaul - there is no CGT on super transfers as far as I am aware!!

Dondy

You have to have been outside of the UK for more than 5 full UK tax years, not just 5 straight years. Be very careful otherwise it could cost you a lot of money. Make sure you take proper advice even if you have to pay for that advice.

Dondy

Do it yourself - it isn't difficult to complete the transfer forms, just time consuming - make sure you read everything very carefully, understand what you are doing and make sure the fund you use for the receipt of the transfer is QROPs compliant. You would also be advised to seek a couple of opinions to ensure that this is the best decision for you. There are a lot of implications in doing this (tax, exchange rates, growth opportunities, death benefits etc) - also, if you ever move back to the UK you won't be able to transfer the funds back to a UK pension fund. You have to make the decision based on your own circumstances not on what other people have done and their various anecdotes.

Kiwipaul

Yes their is if you don't transfer within 6 months of arrival.

The CGT tax is based on the increase in value of the pension since you arrived in Oz. Work out the value in Oz $ when you arrived and work it out in Oz $ when it's transferred, using the exchange rates on the given dates.

Kiwipaul

I've been outside the UK for 20 years with no trip back so I'm well outside the 5 year limit.

Don't assume if you pay for advise you are getting the correct advise. One Pension Transfer Specialist who has posted on here claims that you should work out the gain in pounds and then convert to Oz dollars using the transfer date exchange rate for CGT purposes which is WRONG according to the ATO tax site.

He also claimed most Specialists do it this way and so he has been costing Expats thousands in extra tax.