Elizabeth31

Hi Again

Can anyone help me with some information on income tax. If my OH and I come to Oz we will have pensions from the UK (not state pension). I've been trying to work out how much tax we will pay on those pensions as compared to in the UK and if I've done the calculations correctly it seems as though we would pay much more in Australia than in the UK. The tax free personal allowance in the UK is £8,105pa as from 1 April this year and then tax is paid at 20% on the remainder of your pension. From what I have found on the internet the Australian personal allowance is $6,000 and then tax paid at 15% on the remainder (and medicare levy on top of that but can't work that part out yet).

Have I got it right?

Thanks

Bermudashorts

You seem to have found the tax brackets and personal allowances, so depending upon any other income you may have and the size of your pensions, then I would say you look to be on the right track.

Grayling

If you are an Australian resident then you have to pay Australian tax on your worldwide income.

ROMFT_WO2RN

Will be in same situation with a UK work pension in payment whilst working. The question is, is that pension taxed at a separate rate?

Grayling

It will be taxed as income by the ATO the same as the rest of your income.

You can claim exemption for UK based pensions from UK tax.

ROMFT_WO2RN

Thought so form ready to go for Jul for the tax exemption on the pension.

Cheers G

Grayling

Indeed....I am in the same position.

Grayling

Be careful with the tax on your pension from the UK. Make sure you account for it otherwise you will get a nasty bill at the end of the year.

I had to pay $10000 in a lump sum last year.

ROMFT_WO2RN

Plans in place to use it in UK and leave it there, but def declare and stump up in Oz