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Guest Chelseadownunder

UK Pension Transfers

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    Guest Chelseadownunder

    Its a good idea within your early months in Australia to look into transfering you UK Pensions I have copied in some information members may find helpfull. This is general information and should not be taken a personal advise. PM me if you need more info. Steve



    Australian tax treatment of transferred benefits

    The Australian tax treatment of the transfer will depend on

    whether it occurs within six months of the member becoming an

    Australian tax resident, or after this date.

    For a permanent migrant, the date of becoming an Australian

    tax resident is usually the date of arrival.

    Benefits transferred within six months

    Where the overseas super benefits are received within six months

    of the member becoming an Australian tax resident, the entire

    amount transferred is treated as a non-concessional contribution.

    No tax will be applied in Australia, however the full amount will

    count against the non-concessional cap of $150,000 ($450,000

    if the bring-forward provision is available).


    Benefits transferred outside six months

    Where the transfer occurs outside the first six months of the

    member becoming an Australian tax resident, the difference

    between the value of the overseas benefit as at the date of

    becoming an Australian tax resident and the final transfer amount

    will become what is referred to as the growth component.

    The member has three options for the treatment of this

    growth component:



    Include the growth component in their personal assessable

    income, which would be taxed at their marginal tax rate. Within

    the super fund, the amount transferred would form part of the


    tax-free component and be counted against the member’s


    non-concessional cap.



    Elect for the growth component to be included in the assessable

    income to the receiving fund, subject to tax at a maximum rate

    of 15%. While the growth component is essentially treated as a


    concessional contribution, the amount is not counted against


    the member’s concessional contribution cap.




    Elect to transfer only part of the growth component to super

    and include the rest in their personal assessable income (this is

    a combination of the first two points).

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