Guest Drumms

HM Forces Terminal grant & Tax ?

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    Guest Drumms

    Hi,

    Any Ex British Military or financial guru's who can advise on this one?

     

    We are due to land in Adelaide Mid Oct 2010, I am due out of the Royal Air Force on 11th Dec 2010 and expect to receive my Terminal Grant and Resettlement Commutation 10-30 working days later.

     

    If we come across as planned, would my lump sum be taxed by the ATO?

    I did phone them direct but am awaiting an expert reply, the immediate answer was yes, followed by lots of Umms and "I'm not sure!".

     

    If this is the case we would wait until we have received the lump sum before arriving. I am aware that I will be taxed on my monthly pension by the ATO But its the lump sum thats the main worry.

    We would prefer to arrive in advance as we can acclimatise and job hunt to be in gainful employment come 13th Dec.

     

    Thanks in advance

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    Guest soggy
    Hi,

    Any Ex British Military or financial guru's who can advise on this one?

     

    We are due to land in Adelaide Mid Oct 2010, I am due out of the Royal Air Force on 11th Dec 2010 and expect to receive my Terminal Grant and Resettlement Commutation 10-30 working days later.

     

    If we come across as planned, would my lump sum be taxed by the ATO?

    I did phone them direct but am awaiting an expert reply, the immediate answer was yes, followed by lots of Umms and "I'm not sure!".

     

    If this is the case we would wait until we have received the lump sum before arriving. I am aware that I will be taxed on my monthly pension by the ATO But its the lump sum thats the main worry.

    We would prefer to arrive in advance as we can acclimatise and job hunt to be in gainful employment come 13th Dec.

     

    Thanks in advance

     

    Hi,

    not a financial guru but even if it should be taxed as income I would be inclined to keep a UK account open and have it paid into that, transfer it later, most people have some money tranfered over after they arrive and it is likely to go unnoticed. :):)

    Simon

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    Guest Drumms

    Hi,

    We will be perminant residents, and we do need to take it for a deposit on a house. I would rather play ball than risk a nasty shock of being caught out with a large tax demand from the ATO. if we have to delay our move so be it.

     

    Steve

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    Hi

     

    Permanent residents of Australia are generally taxed on their worldwide income, so I cannot see a reason why it would not be taxed.

     

    If you have not already done so you might want to try for a Private Ruling from the ATO to clarify (not 100% sure if they can do it for people overseas). Try this link http://www.ato.gov.au/individuals/content.asp?doc=/Content/34047.htm&page=19&H19

     

    They are usually quite helpful.

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