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Transferring UK pensions to Oz

Transferring UK pensions to Oz

Old Apr 27th 2007, 9:00 am
  #16  
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Default Re: Transferring UK pensions to Oz

so if we have only small amount in our funds, less than the $150,000, it doesn't make any odds if its after June ?
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Old Apr 27th 2007, 9:14 am
  #17  
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Default Re: Transferring UK pensions to Oz

I've read and reread the ATO stuff and I am hoping that in the jargon there it is actually referring to a situation where you may have made additional voluntary contributions over and above the statutory ones, with the former being subject to this ruling and the latter not. In typical Aussie fashion though, my accountant said ask the Super fund, the Superfund said ask the ATO, the ATO gave me the above advice but admitted they weren't sure (!) and suggested I talk to a financial advisor....

What I'm really hoping is that someone who has actually done this will post an authoritative reply....
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Old Apr 27th 2007, 12:48 pm
  #18  
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Default Re: Transferring UK pensions to Oz

Originally Posted by MartinLuther
Nowadays they take it from your pension. Remember that you can reduce the gain (and tax) by subtracting the costs of the transfer.

Oh good point not thought about that With my £10,000, prob wont be much tax then
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Old Apr 29th 2007, 12:30 am
  #19  
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Default Re: Transferring UK pensions to Oz

Originally Posted by magnetman
I've read and reread the ATO stuff and I am hoping that in the jargon there it is actually referring to a situation where you may have made additional voluntary contributions over and above the statutory ones, with the former being subject to this ruling and the latter not. In typical Aussie fashion though, my accountant said ask the Super fund, the Superfund said ask the ATO, the ATO gave me the above advice but admitted they weren't sure (!) and suggested I talk to a financial advisor....

What I'm really hoping is that someone who has actually done this will post an authoritative reply....

Any takers on this.
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Old Apr 29th 2007, 2:12 am
  #20  
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Default Re: Transferring UK pensions to Oz

Originally Posted by magnetman
I've read and reread the ATO stuff and I am hoping that in the jargon there it is actually referring to a situation where you may have made additional voluntary contributions over and above the statutory ones, with the former being subject to this ruling and the latter not. In typical Aussie fashion though, my accountant said ask the Super fund, the Superfund said ask the ATO, the ATO gave me the above advice but admitted they weren't sure (!) and suggested I talk to a financial advisor....

What I'm really hoping is that someone who has actually done this will post an authoritative reply....
Go on then I'll take it.

There's probably not that many people out there who have had direct experience of this, mainly because the $1m transitionary allowance came in last July when the rules changed, and was for 1 year only, and the $150k per year (or $450k every 3 years) comes in from next July. Prior to last July there was no limit but there were other nasty things like Reasonable Benefit Limits and tax on withdrawal to stop people abusing the system. Believe me it better to see the back of them.

In bringing your pension over it comes across as an undeducted contribution regardless of how you made the contributions in the UK - i.e. Aus does not recognise UK Additional Voluntary Contributions (AVC) as anything separate.

An undeducted contribution is basically a contribution to your super made out of money on which (it is deemed that) tax has already been paid. People should be glad of this as their UK pensions are built up with tax-free money. The undeducted contribution is the equivalent of the UK AVC in that people can use this to build up their pension pot but is obviously not the same from a tax perspective (i.e. you don't get a tax back on the contribution).

So the limits apply to any UK pension amounts you bring across plus any extra contributions you want to make out of tax paid salary.

Obviously there are little quirks and loopholes for special cases and I'm sure someone will be along in a minute to inform us of these.

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Old Apr 30th 2007, 12:47 am
  #21  
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Default Re: Transferring UK pensions to Oz

SO, do I understand that as my UK transfer value is over the $150000 and as I can not spread the transfer over the 3 years I will end up paying a hefty tax on the part over $150000.
Any answers on a post card please
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Old Apr 30th 2007, 1:16 am
  #22  
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Default Re: Transferring UK pensions to Oz

Alan Collett comments on his site here: http://www.gomatilda.com/news/article.cfm?articleid=396

"...We think it probable that the Government has not fully considered the migrant sector of the population and the FIF provisions in particular, and have therefore approached the offices of the Treasurer and the Immigration Minister in an effort to obtain greater clarity on these issues relatively urgently.

We will report back on Go Matilda News as soon as we hear anything further on this subject.
"
It would be great if he could give us an update
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Old Apr 30th 2007, 3:54 am
  #23  
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Default Re: Transferring UK pensions to Oz

Originally Posted by Mandy&Cliff
SO, do I understand that as my UK transfer value is over the $150000 and as I can not spread the transfer over the 3 years I will end up paying a hefty tax on the part over $150000.
Any answers on a post card please
Not quite. You can bring forward your allowances for the next 2 years and add it to the allowance for the current year. So you can transfer $450k when you arrive but cannot then transfer anything (or add undeducted contributions) for 3 years.

If you've got more than $450k in your pension pot then I would just like to say well done you lucky (or hard working) bugger.

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Old Apr 30th 2007, 9:47 am
  #24  
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Default Re: Transferring UK pensions to Oz

A bit more research reveals some scaremongering from a firm charging 4% of your fund to transfer and who couldn't possibly get the transfer accomplished now by July 1

http://www.agoodmove.com.au/stoppress.php
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Old May 3rd 2007, 4:13 am
  #25  
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Default Re: Transferring UK pensions to Oz

I think this is indeed "scaremongering" but can anyone shed some light?? I am in the process of transferring (with another firm) and it's more than a little stressful.

There are a lot of rumours around but nothing official and they all seem to lead back to PTD. But it doesn't mean they are wrong and I really can't see how it helps their business - the chance of getting anything in within 2 months must be really slim. It took 5 weeks just to get an estimate from my pension fund.

Thanks
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Old May 3rd 2007, 6:19 am
  #26  
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Default Re: Transferring UK pensions to Oz

Originally Posted by RRZ
I think this is indeed "scaremongering" but can anyone shed some light?? I am in the process of transferring (with another firm) and it's more than a little stressful.

There are a lot of rumours around but nothing official and they all seem to lead back to PTD. But it doesn't mean they are wrong and I really can't see how it helps their business - the chance of getting anything in within 2 months must be really slim. It took 5 weeks just to get an estimate from my pension fund.

Thanks

I am in the process of transferring my pension without using a company. I say `am in the process` well this end OZ seems quick and trouble free. Have set up QROPS fund rolled other funds to open it, new fund has sent me letters which I have sent to the UK all within a matter of 10 days... Now for the fun part............ Have written to the good old NHS fund, Nil reply... Repeat the letter different tack.... enclosures from OZ fund.... So thinks to myself I will ring them.... Now, am told that yes they have received my letter, bonus but that they cannot calculate a transfer certificate for another month..:curse: I tried to work this one out. the calculations must either be incredibly difficult or an abacus is being used. WTF. Am told they have a back log. I will have to go into the queue. I ask`Have you got more people dealing with this, given your backlog?` NO response except `you are in the queue`. I now have a reference number, deep joy. so it would seem even though I no longer live in the UK I am still subject to the NHS waiting list, perhaps I should have gone private!
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Old May 3rd 2007, 8:23 am
  #27  
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Default Re: Transferring UK pensions to Oz

Don't bother ring Care super up as they are not set up as a qrops, however you spell it,fund,I rang them today to ask.Just because they are on the list doesnt mean they are ready to go,
Cheers lorri
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Old May 3rd 2007, 11:55 am
  #28  
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Default Re: Transferring UK pensions to Oz

That's yet another worry, I saw CARE was on the list but I am using AustralianSuper - I hope/pray AS are better, I should hear soon. I thought about doing this myself but I need the calculations done for tax purposes and I already have enough "stress" thank you very much. Dealing with NHS administration from half way round the world doesn't qualify as fun in my book .. best of luck!
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Old May 3rd 2007, 12:21 pm
  #29  
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Default Re: Transferring UK pensions to Oz

Originally Posted by RRZ
That's yet another worry, I saw CARE was on the list but I am using AustralianSuper - I hope/pray AS are better, I should hear soon. I thought about doing this myself but I need the calculations done for tax purposes and I already have enough "stress" thank you very much. Dealing with NHS administration from half way round the world doesn't qualify as fun in my book .. best of luck!
Same here, using AustralianSuper, they have been really good so far, we had bits of Super around the place so rolled it all into AustralianSuper. Once it arrives I intend to move it into QSuper with is through work but as QSuper are not QROPS had to use AustralianSuper, at least not charging 4% of my hard earnt pension.

Mandy.
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Old May 3rd 2007, 12:43 pm
  #30  
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Default Re: Transferring UK pensions to Oz

Remember that a transfer to a non-QROPS fund is a reportable event to the UK Revenue if it takes place within a set timeframe (I recall at least 5 complete UK tax years post departure from the UK must elapse before an event such as this is non-reportable).

Exercise care ...

Best regards.



Originally Posted by Mandy&Cliff
Same here, using AustralianSuper, they have been really good so far, we had bits of Super around the place so rolled it all into AustralianSuper. Once it arrives I intend to move it into QSuper with is through work but as QSuper are not QROPS had to use AustralianSuper, at least not charging 4% of my hard earnt pension.

Mandy.
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