Please feel free to get in touch if you wish to discuss your own circumstances, which differs from individual to individual. They will know all the tax rules and rates and help you work out the best decision for you. The UK pension funds transferred to eligible Australian QROPS and are not taxed in Australia provided they are received within six months of the member: Becoming an Australian resident for tax purposes, or Yes, in many cases you can transfer your UK pension to Australia, however, there are specific rules surrounding such a transfer. There was an expectation that many retail super would adopt the rule change but this has not materialised, for a variety of reasons. You’ll avoid any fees associated with accessing your UK pension overseas, including something called trail commission. What are mortgage offset accounts & how much tax could they save you? You can find out more about the tax implications of a UK pension to Australia transfer from the ATO. The fifth question is: Do I have to convert my UK pension to Australian dollars? This is because on the 6th April 2015, HMRC disqualified all Australian QROPS funds because they permitted access prior to age 55 if a member met the financial hardship conditions. Get in touch with me as soon as you’re able—see my contact details below—and we’ll get the ball rolling for you. You are consolidating your wealth into the Australian tax system. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. John Wasiliev Columnist. If you transfer your fund within 6 months of arriving in Australia then there is no tax due. Ensure you’re aware of all the rules relating to the transfer, charges, fees, taxes, time scales and financial limits. You probably already new that, which is why you’re here. In addition, if you don’t make the transfer within six months of moving to Australia, you could face additional taxes. If your UK pension balance is the equivalent of $500,000 Australian dollars, then it will take you 5 years to get your UK pension fully into your Australian super. Where you’re a permanent resident of Australia who has opted to emigrate to enjoy retirement in the UK, you cannot transfer your Superannuation into a UK pension fund. Action Fraud Telephone: 0300 123 2040 Textphone: 0300 123 2050 Monday to Friday, 8am to 8pm Find out about call charges Dealing with the QROPS quagmire can certainly feel like trudging through mud at times, but thankfully there’s a clear (albeit complex!) Unlike Australian superannuation though, there are over 240 different styles of UK defined contribution pension. So let’s move on to the important details…. Defined Contribution or Money Purchase Pension. BALGOWLAH NSW 2093, Level 1, 12/11-13 Pearl St Tax when you transfer to a QROPS Each time the UK pension rules changed or contract styles from pension providers were updated, they frequently only applied to future contracts not historical contracts. The main ones that are exempt from any kind of transfer (apart from to a like-for-like defined benefit scheme) are: That’s because they’re classed as unfunded public sector pension schemes and under rules introduced in 2015, should remain invested in the same scheme or, the same type of scheme, run by or through the public sector. After this period, you will be subject to Applicable Fund Earnings tax, which is an ATO levied tax and is meant to bring you into line as if you transferred your fund the day you arrived. Save my name, email, and website in this browser for the next time I comment. The Australian and New Zealand Bank, or ANZ and AMP Bank are both popular choices. Plus, there is the added benefit of ease of managing your retirement and pension account in one jurisdiction. Previously, pension savings could be transferred it at any age. What kind of Australian scheme can I transfer to? Tony is also a highly qualified Independent Financial Adviser in his own right. Foreign super transfers (such as a UK Pension fund) are not treated by the Australian Taxation Office (ATO) as a transfer or rollover of existing benefits, but as a new contribution. This access rule is not available under UK pension rules so meant Australian QROPS funds placed members in a better position than their UK counterparts. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events. If there’s a chance that you could return to the UK, then transferring your UK pension to an Australian scheme might not be the right decision. It’s a big move to change countries. This is the minimum age you will be eligible to transfer your UK Pension to Australia. Get in touch to be introduced to the right advisor for you... © 2020 OnlineMoneyAdvisor. They include tax details, scheme benefits – both of your UK pension and the Australian super you’re considering. For further guidance on how to transfer or access your Australian superannuation pension fund from the UK, a registered pension transfer expert such as those we work with, can offer advice on this. Whether or not you should transfer your UK pension to an Australian scheme depends on different details specific to your situation. If you do decide to get our help in making this complex UK pension transfer process happen for you, you can rest assured we’ve helped other clients successfully navigate this process. Or, your pension may end up in a scheme that’s not really suitable for your future retirement needs. Being slow and only getting 50% of the UK pension into Australian super wastes almost $6,000 AUD. If your UK Pension fund was valued at less than $300,000 (in today’s terms) when you became an Australian tax resident then you may be entitled to transfer the entire balance in one transaction. If you’re new to Qualifying Recognised Overseas Pension Schemes (QROPS) in Australia, or if you’re still researching how to make it all happen, here are some facts and tips to help you through the process. Once you have taken advice and decided it is in your best financial interest to transfer your UK Pension to Australia, you need to check that you are eligible to. Updated Dec 8, 2017 – 9.54am, first published at Dec 7, 2017 – 12.15am. His mantra has always been "Hope for the best, but PLAN for the worst", and believes that the biggest impact that an adviser can have on a client's life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they WANT their retirement to be. But… if you can get those funds across into superannuation in Australia, your retirement income is tax-free. Harding Wealth Management Pty Ltd (1009142) is a Corporate Authorised Representative and Simon Harding (448430) is an Authorised Representative of HNW Planning Pty Ltd AFSL 225216 www.hnwplanning.com.au | Privacy Statement | Financial Services Guide© 2020 Harding Wealth Management (ABN 62 603 965 215), How to Transfer your UK Pension to Australia, https://hardingwealthmanagement.com.au/wp/wp-content/uploads/2017/10/logo.png, https://hardingwealthmanagement.com.au/wp/wp-content/uploads/2018/09/ukgeneralelection-640x410-553x311.jpg, Harding Wealth Management, PO Box 408, Willunga SA 5172, Australia, Contact us today for a highly personalised advice service, Caveat Emptor – UK Defined Benefit Pensions. You can transfer your UK pension to an Australian super fund if: Regarding the age limit, recent changes to the British pension system mean that Australians must now be aged at least 55 – the British preservation age for personal and workplace pensions – to transfer pension savings to Australia. Speak with a registered and experienced pension transfer advisor, like those we work with, who provide answers to all your questions on transferring your pension to Australia and help you decide if you should make the transfer. Looking after a disabled loved one? If, however, you don’t make the transfer until after that period, the amount you transfer will be subject to a 15% tax, according to the Australian Tax Office … Can I transfer my Australian pension to the UK? If you decide to transfer your UK pension to Australia, then only certain types of Australian Superannuation Funds have been approved by HMRC as suitable for such a change. Therefore, we see many defined contribution funds have contract terms that must not be given up without qualified analysis. (Did I mention the QROPS airline only flies one way, and you can’t get on a return flight?). We have the facility to set up a qualifying QROPS SMSF in Australia with the underlying investment portfolio invested in GBP funds. The amount of pension you will receive is based on a formula linked to your length of service and your final salary when you left that employer. Tony has worked in a vastly diverse array of areas in the pensions industry for over 2 decades. We create properly invested portfolios invested in GBP or AUD, or any combination of the two. Conversely, those that do not provide a level of guarantees may actually provide extremely poor death benefits (sometimes a return of contributions only) with high fees (previous commissions being paid to an adviser). Potentially. It is not a tax on the entire balance as some would have you believe. While there are special circumstances in which you can access your Australian Superannuation early, it’s unlikely they will relate to a move to the UK. You can make a DASP claim if: However, you cannot claim the full amount of super fund payments that were made, you may face a tax of up to 65% of the amount, plus a management fee in some cases.