Andrew from Vista Financial

Temporary resident money matters

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    To current/future temporary visa holders.

     

    Thought some might find this info useful.

     

    Firstly with regards to obtaining a mortgage in Australia, yes this is allowable and can be done. You can generally borrow up to 80% of the property value with most lenders.

     

    You will need to obtain approval to purchase your home from the FIRB (Foreign Investment Review Board) first, however this is generally a formality and may only take up to a week or two for approval. Established homes are included in this.

     

    Secondly with regards to UK pension transfers, if you are a resident for tax purposes, then you will not be subject to the 6 month tax free threshold for bringing your Pension across from the UK. If you transfer your Pension once permanent and therefore are outside of the 6 month window since becomin tax resident then the fund is taxed on the growth the same way as a permanent resident would be.

     

    This post is just to clarify the situation for temporary residents on these points. In regards to the Pension transfer, please do not make any decisions to transfer based just on the 6 month rule, there are many factors that need to be taken in to account and also the tax that may apply if you are outside of the 6 months is generally not as onerous as suggested.

     

    Also please note that new legislation means it could be very unwise to transfer a pension as a temporary resident.

     

    Hopefully this just paves some direction for people to think about.

     

    Regards

     

    Andy

    Edited by Andrew from Vista Financial
    Updated for new legislation

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    Guest caz and wayne

    Hi Andy

     

    Very useful information. Keep the snippets coming!

     

    Carolyn

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    Guest cunnah10

    Cheers Andy

     

    Was bit concerned and confused over being able to buy property (particularly established)

     

    Gill

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    Guest Nick11

    Andrew - if I put $1000 in my superan fund will the government top it up by $1500. I am a 495 visa holder and someone said the government wouldn't make that contribution on that visa!

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    Guest soggy

    Hi Andrew,

    am I right in thinking that the six months relates to when you begin the process of the pension transfer, as it can take a long time to actually happen due to the UK pension funds, and could you give a ballpark figure on upfront fee's for the transfer( unless your an even nicer man than people say and it's free:))

     

    Simon

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    Hi guys

     

    Nick, unfortunately the person that told you this is correct. It is only PR that is eligible for the Co-Contribution, I know how you may feel about this as I too am on the 495! Frustrating!!

     

    Simon

     

    The 6 month tax free threshold does actually start from the date that you become tax resident in Australia, bear in mind though that it is only the growth on the fund from the time you became tax resident to the day the Pension is transferred that is liable to tax.

     

    In terms of charges Simon.

     

    "( unless your an even nicer man than people say and it's free:))"

     

    Nice try I suppose! lol.

     

    It would depend on individual circumstances, ie how much work is involved, balance of fund etc., I can assure you though it will be fair.

     

    Feel free to contact me by PM or email which is part of my signature and we could maybe arrange a chat.

     

    Regards

     

    Andy

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    Guest Amelia&Fred

    Hi Andrew

     

    I am so confused about the superannuation.... I wonder if you could let me know whether you can transfer your funds including employer contributions... for example, I go with the super fund that my work is offering me, however if i change jobs, can i take all the money with me and put it in to another fund??? Or would it be better to just set up a joint fund from the start with my husband??

     

    This stuff is a minefield!! I hope you can help...

     

    Thank you

     

    Amelia and Fred

    www.funkeldink.com

     

    ps... interesting stuff about the mortgage, thanks!

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    Hi Amelia and Fred

     

    I think what your asking is can you transfer your UK Pension including any Employer contributions to your current Super fund. If this is what you mean the answer is possibly.

     

    There are many different factors involved. It will also depend on the type of UK Pension you have and on the type of Super your Employer offers.

     

    You can have as many Supers as you like but for simplicity and cost it makes sense not to. Like a UK Pension you can only have Super funds in individual names.

     

    If you wish to contact me feel free, my work email is part of my signature. We can maybe go in to a bit more detail.

     

    Regards

     

    Andy

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