On the road again

Hi

Was thinking about taking our superannuation and moving it to the UK. I suspect there's some sort of taxes to be paid... Anyone have any information to share on this.

Thx

Grayling

Do you mean transfer into a pension scheme or withdraw it and move it as cash?

On the road again

Thx for the response. It appears you can't take Aus super out of the country for anything other than very extenuating circumstances.

Grayling

Ok....I intend to cash mine in and transfer the money. There are no tax implications for that but you can only do it once you reach a certain age.

SUPERCAD

55 i believe.. i looked into getting mine outno go untill im 55 the other thing to think about is the government changing the rules. either moving the age up or not letting you take a lump sum. if i could get it now i would.

spouse of scouse

Once you've reached your preservation age you can do what you like with your super, including withdrawing the lot and doing whatever you like with it (although this may have tax and social security ramifications).

At present you don't pay any tax on an allocated pension from your super fund if you're over 60, although if Abbott has his way this will change. Once your money hits the UK it's taxable as ordinary income, ie no tax breaks due to it being a super funded pension or lump sum.

Anyone who's contemplating using their Oz super to fully or partly fund their UK retirement, as Scouse and I are, must get competent financial and taxation advice prior. There's no way I'm going to transfer my super to a UK bank account, the interest rates are abysmal!

killerhales

Does anyone on here know a lot about super or know someone who does? Understanding the ATO site is not easy. My wife has just reached her preservation age and we want to bring her super back home with minimum tax at both the Australian and UK ends. It seems like a "transition to retirement" is one of the best options. She is a not a citizen of Australia.

spouse of scouse

Transition to retirement is for people who want to reduce their working hours - is your wife still working in Australia?

It's up to you, but I think you need some professional advice on this. How much tax she will pay in Australia depends on her age, whether the super contributions were made pre or after tax, and in some instances, it will also depend on any other income she's received from employment, investments, property, bank interest etc. Tax paid also depends on whether she takes an account based pension or a lump sum. And that's all before any UK tax implications.

You need to be aware that while some Oz super pensions are tax free, they can lose this tax free status if paid to you in the UK (ie, the payments are classed as ordinary income for UK tax purposes) There are certainly ways to minimize the tax you pay, but so much depends on your particular situation - hence the need for a tax professional. Good luck.

killerhales

Cheers SoS. We are now permanently based in the UK. I will certainly get some professional advice.
I was thinking about transition to retirement mainly as a way of bringing smaller amounts back every year and minimising the UK tax.
However, as I believe that the pound will continue to strengthen against the dollar it may be best to bring it all back soon and pay a bit more tax!

spouse of scouse

If you get any good tips killer, pass 'em on! Scouse and I are retiring to the UK and will be getting professional help to sort out our finances before we leave, our Oz super and tax will be the biggest headache. Best of British to you and your good lady