bridgie Posted April 24, 2015 Share Posted April 24, 2015 Hi Everybody, Just about to start the PR route to follow our children to Oz and I'm looking for an answer to a pension question. i have searched the forum and couldn't find anything so I apologise If I'm In the wrong section etc; Question :- I was In the UK Fire Service and receive a pension from UK Gov. Due to an Injury I sustained I receive part of that pension tax free. When I come to Oz will I still be taxed as normal in the UK and keep my tax free allowance or will the gross pension be taxed In Australia and the previous tax free part now be Included In an Australian Tax Calculation. It will make quite a difference. I/We will be 60/61 when we receive our PR's I suspect. We are currently 57/58 and are applying late this year. Appreciate any answers---even If It's pointers to the right section:smile: Quote Link to comment Share on other sites More sharing options...
NicF Posted April 24, 2015 Share Posted April 24, 2015 Once you are resident in Australia all your income will be taxed in Australia. There is a tax free allowance of $18,000 a year though so you will only pay tax on the amount over this. There may be ways to reduce your tax liability by paying in to a super fund here but I'm not sure if it applies if you are already receiving a pension. The best thing would be to take some advice from an expert in the area. Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 24, 2015 Author Share Posted April 24, 2015 Once you are resident in Australia all your income will be taxed in Australia. There is a tax free allowance of $18,000 a year though so you will only pay tax on the amount over this. There may be ways to reduce your tax liability by paying in to a super fund here but I'm not sure if it applies if you are already receiving a pension. The best thing would be to take some advice from an expert in the area. Many thanks for the speedy answer NicF. We will be visiting Oz later this year and i will be contacting a few consultants. Super Is not worth It as i have a good pension already----i just what to hang onto as much of it as poss. I spoke to an Ex Copper friend of mine who has now left Australia and he said that his UK Police Pension was taxed fully in Australia, hence my enquiry. I will be Interested to see If i can claim any reductions to lessen my tax exposure. Expert advice is always best but, personal experience is valuable to. Thanks Quote Link to comment Share on other sites More sharing options...
NicF Posted April 24, 2015 Share Posted April 24, 2015 The super thing is more to do with getting tax breaks. I'm not sure if it would be possible in your situation but would be worth finding out. Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 24, 2015 Share Posted April 24, 2015 Hi Everybody, Just about to start the PR route to follow our children to Oz and I'm looking for an answer to a pension question. i have searched the forum and couldn't find anything so I apologise If I'm In the wrong section etc; Question :- I was In the UK Fire Service and receive a pension from UK Gov. Due to an Injury I sustained I receive part of that pension tax free. When I come to Oz will I still be taxed as normal in the UK and keep my tax free allowance or will the gross pension be taxed In Australia and the previous tax free part now be Included In an Australian Tax Calculation. It will make quite a difference. I/We will be 60/61 when we receive our PR's I suspect. We are currently 57/58 and are applying late this year. Appreciate any answers---even If It's pointers to the right section:smile: I will be bringing a Civil Service pension. The answer to this is that the whole pension will be subject to Australian Tax after the tax free allowance as NicF stated. If you are having it paid to the UK bank account and subjected to UK tax after UK personal allowances then any UK tax you pay will be deducted from the Oz tax that will be due. In your case the Oz tax will probably be greater because there will be no tax free element. You will almost certainly know this but - just in case - please note that your State Pension, once you are eligible, will be frozen as at the date that you start drawing it and will not rise with cost of living etc as it would if you remained EU resident. Another thing to factor in for the longer term. Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 24, 2015 Author Share Posted April 24, 2015 I will be bringing a Civil Service pension. The answer to this is that the whole pension will be subject to Australian Tax after the tax free allowance as NicF stated. If you are having it paid to the UK bank account and subjected to UK tax after UK personal allowances then any UK tax you pay will be deducted from the Oz tax that will be due. In your case the Oz tax will probably be greater because there will be no tax free element. You will almost certainly know this but - just in case - please note that your State Pension, once you are eligible, will be frozen as at the date that you start drawing it and will not rise with cost of living etc as it would if you remained EU resident. Another thing to factor in for the longer term. Thanks for the replies, it's as I feared. We also have a house In Spain where we currently live. Is it possible to have Permanent Residency status In Australia but stay out of the country for a length of time to not be eligible for Australian Taxation? We are aware of the OAP rules and to a certain extent some of It applied to us when we left the UK in 2007. Currently I've got to wait til 66 to get any State Pension so I'm not holding my breathe I'm actually going to get any. Quote Link to comment Share on other sites More sharing options...
Bungo Posted April 24, 2015 Share Posted April 24, 2015 Thanks for the replies, it's as I feared. We also have a house In Spain where we currently live. Is it possible to have Permanent Residency status In Australia but stay out of the country for a length of time to not be eligible for Australian Taxation? We are aware of the OAP rules and to a certain extent some of It applied to us when we left the UK in 2007. Currently I've got to wait til 66 to get any State Pension so I'm not holding my breathe I'm actually going to get any. There is not much point having permanent residency, which is pretty costly for parents, but then not using it. Just go on holidays if you don't want to pay Australian tax. If you want to live in Australia then you pay Australian tax. Quote Link to comment Share on other sites More sharing options...
The Fisheys Posted April 24, 2015 Share Posted April 24, 2015 Hi Everybody, Just about to start the PR route to follow our children to Oz and I'm looking for an answer to a pension question. i have searched the forum and couldn't find anything so I apologise If I'm In the wrong section etc; Question :- I was In the UK Fire Service and receive a pension from UK Gov. Due to an Injury I sustained I receive part of that pension tax free. When I come to Oz will I still be taxed as normal in the UK and keep my tax free allowance or will the gross pension be taxed In Australia and the previous tax free part now be Included In an Australian Tax Calculation. It will make quite a difference. I/We will be 60/61 when we receive our PR's I suspect. We are currently 57/58 and are applying late this year. Appreciate any answers---even If It's pointers to the right section:smile: Once you get PR you can elect to have your UK pension paid free of UK taxes. You then pay tax in Australia, which seems fair, after all you are living here. Quote Link to comment Share on other sites More sharing options...
The Fisheys Posted April 24, 2015 Share Posted April 24, 2015 Many thanks for the speedy answer NicF. We will be visiting Oz later this year and i will be contacting a few consultants. Super Is not worth It as i have a good pension already----i just what to hang onto as much of it as poss. I spoke to an Ex Copper friend of mine who has now left Australia and he said that his UK Police Pension was taxed fully in Australia, hence my enquiry. I will be Interested to see If i can claim any reductions to lessen my tax exposure. Expert advice is always best but, personal experience is valuable to. Thanks Be your own expert mate, I would never rely on a mate. I have got to say though please don't come here and live off my taxes, pay your share please, so never mind reducing your tax exposure, just pay your share. Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 24, 2015 Author Share Posted April 24, 2015 Be your own expert mate, I would never rely on a mate. I have got to say though please don't come here and live off my taxes, pay your share please, so never mind reducing your tax exposure, just pay your share. More than happy to pay any tax I legally have to. Like wise If I can reduce what I have to pay legally It would be pretty stupid not to do it. Quote Link to comment Share on other sites More sharing options...
MARYROSE02 Posted April 24, 2015 Share Posted April 24, 2015 Be your own expert mate, I would never rely on a mate. I have got to say though please don't come here and live off my taxes, pay your share please, so never mind reducing your tax exposure, just pay your share. That sounds harsh and judgemental. "Please don't come here and live of my taxes." Anybody from the UK who lives in Australia with a UK income has to submit a return to the ATO and they pay any Australian tax they have to, but are also entitled to the same allowances as any Australian taxpayer. In addition, they will also probably have to submit a return to HMRC in the UK but there is a Double Tax Agreement between the two countries so nobody pays the same tax twice. I have UK income from pensions and rent which I transfer to Australia and I include it on my ATO return and I pay tax according to the law. Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 25, 2015 Author Share Posted April 25, 2015 (edited) That sounds harsh and judgemental. "Please don't come here and live of my taxes." Anybody from the UK who lives in Australia with a UK income has to submit a return to the ATO and they pay any Australian tax they have to, but are also entitled to the same allowances as any Australian taxpayer. In addition, they will also probably have to submit a return to HMRC in the UK but there is a Double Tax Agreement between the two countries so nobody pays the same tax twice. I have UK income from pensions and rent which I transfer to Australia and I include it on my ATO return and I pay tax according to the law. Thanks for the reply. On a quick calculation I have worked out we will be 250$ worse off a month which Is "small potato's" compared to the flight to and fro. I would love to live of someone else's taxes . We even have to pay a bond each to make sure we won't try to use or abuse the benefit system. Do I mind--not a bit of It Australia has It right. We also have had bank accounts In Australia for 6 years and are taxed as foreigners so you could say others are living off my taxes.:laugh: Edited April 25, 2015 by bridgie Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 25, 2015 Share Posted April 25, 2015 Thanks for the replies, it's as I feared. We also have a house In Spain where we currently live. Is it possible to have Permanent Residency status In Australia but stay out of the country for a length of time to not be eligible for Australian Taxation? We are aware of the OAP rules and to a certain extent some of It applied to us when we left the UK in 2007. Currently I've got to wait til 66 to get any State Pension so I'm not holding my breathe I'm actually going to get any. Crikey! If I am reading this right you are not expecting to live past 66. Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 25, 2015 Author Share Posted April 25, 2015 Crikey! If I am reading this right you are not expecting to live past 66. I'm not even sure I'll see 60. I have a condition that unfortunately Is becoming more common I truly hope It's not congenital. It's called "Kid's bleeding you dry" I don't know If It's reached the southern hemisphere---I suspect It has!!!!!! Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 25, 2015 Share Posted April 25, 2015 I'm not even sure I'll see 60. I have a condition that unfortunately Is becoming more common I truly hope It's not congenital. It's called "Kid's bleeding you dry" I don't know If It's reached the southern hemisphere---I suspect It has!!!!!! I see. A malignant condition but not terminal. :cute: Quote Link to comment Share on other sites More sharing options...
bridgie Posted April 25, 2015 Author Share Posted April 25, 2015 Sorry I said "Congenital" I meant "Continual":wink: No, In reality all three of them are doing very well. Quote Link to comment Share on other sites More sharing options...
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