Hi

I'm just in the middle of paying my UK Class 3 National Insurance contributions to get another three years counted toward my UK basic state pension. I'm Aussie domiciled. Just wondered whether such contributions can be counted as a tax deduction on my aussie tax return? Does any know?

Neil

UK NI contributions cannot be counted as a tax deduction in your aussie tax return. (Probably not what you wanted to hear ...)

Thanks for that. Knew it was a long shot!

Do you work? If so, you may be able to pay (cheaper) Class 2 contributions instead of Class 3. See this booklet, page 9.

Does anyone know what is the maxium amount of years you can pay, if you are living overseas.

Ie if you had paid 15 years can you backpay the other 15 years in case you go back to UK.

Usually you can backdate 6 years (see page 12 of the booklet), but the idea is that you pay as you go, not in arrears.

Unlike the Australian state pension, you still get the pension if you qualify, even if not in the UK, although it is frozen at the amount to which you are entitled when it starts.

Thanks, I really must find the time to read all the stuff on this subject

For the majority of people with UK citizenship 30 years worth of contributions will give entitlement to 100% of the basic UK state pension, regardless of where you currently live. There's no need to return to the UK to maintain or gain entitlement. If one has paid less than 30 years, then your entitlement is pro-rated, so with 15 paid up years of contributions one is entitled to 50% of the UK basic state pension.

There's doubtless a more precise definition on the website of the UK Department of Work and Pensions which you might wish to read, but hopefully what I wrote above will get you in the ballpark.

Neil