Age pension qualification

Hi. Hope someone can give some information on these queries.

1. When on an 804 Bridging Visa are parents classed as an Australian Resident or are they still a UK resident? If still classed as a UK resident is the UK state pension eligible for the inflation increases whilst on a BVA in Australia?

2. Does time spent on a Bridging Visa for 804 aged parent count towards 10 year qualifying period for Australian age pension or does this start from the granting of the substantial 804 visa.

Just wondered on behalf of people hoping to have their parents come to Australia how pensioners managed in this situation or do they rely on their sponsors.

Thanks.

:smile:

Wishbone, I've moved your thread since I think you'll get more attention in the Money/Finance section from general members.

I can only answer part of your question.

Unfortunately the UK government make no distinction between types of Visa you have in Australia. They will deem you are no longer resident for tax if you live overseas for tax purposes if you meet the criteria set out in the Statutory residence rules.

http://www.accountingweb.co.uk/tax/personal-tax/the-new-statutory-residence-test-explained

This effectively means that anyone living in Australia on whatever visa has their UK State pension frozen at the level at which they first draw it. I don't know if there are time breaks for periods of UK residence i.e. if you were to return to the UK for 5 or more years this amount would be reset.

Time spent in the UK or an unfrozen country for a holiday etc can allow you to upgrade the State Pension to the current levels for the period you are on holiday but you have to apply for it.

Also note that any other pensions from an occupational scheme should still increase annually as per the rules of that particular scheme.

You may also be entitled to extra increases in these occupational schemes if they make a GMP deduction (for pre 1988 pension component contributions) which takes account of your state pension increases, although in practise this is only a small amount. You have to inform your Occupational scheme that you live in a frozen country and they should automatically adjust the amount.

http://www3.hants.gov.uk/pensions/lgps/pensioner-information/lgps-payment-information.htm see the last paragraph re Guaranteed Minimum Pension.

I can only answer part of your question.

 

Unfortunately the UK government make no distinction between types of Visa you have in Australia. They will deem you are no longer resident for tax if you live overseas for tax purposes if you meet the criteria set out in the Statutory residence rules.

 

http://www.accountingweb.co.uk/tax/personal-tax/the-new-statutory-residence-test-explained

 

This effectively means that anyone living in Australia on whatever visa has their UK State pension frozen at the level at which they first draw it. I don't know if there are time breaks for periods of UK residence i.e. if you were to return to the UK for 5 or more years this amount would be reset.

 

Time spent in the UK or an unfrozen country for a holiday etc can allow you to upgrade the State Pension to the current levels for the period you are on holiday but you have to apply for it.

 

Also note that any other pensions from an occupational scheme should still increase annually as per the rules of that particular scheme.

 

You may also be entitled to extra increases in these occupational schemes if they make a GMP deduction (for pre 1988 pension component contributions) which takes account of your state pension increases, although in practise this is only a small amount. You have to inform your Occupational scheme that you live in a frozen country and they should automatically adjust the amount.

http://www3.hants.gov.uk/pensions/lgps/pensioner-information/lgps-payment-information.htm see the last paragraph re Guaranteed Minimum Pension.

Surely your your pension is frozen at the level your were being paid when you left the UK? Please tell me it isn't actually going to be reduced when we leave?

I can only answer part of your question.

 

Unfortunately the UK government make no distinction between types of Visa you have in Australia. They will deem you are no longer resident for tax if you live overseas for tax purposes if you meet the criteria set out in the Statutory residence rules.

 

http://www.accountingweb.co.uk/tax/personal-tax/the-new-statutory-residence-test-explained

 

This effectively means that anyone living in Australia on whatever visa has their UK State pension frozen at the level at which they first draw it. I don't know if there are time breaks for periods of UK residence i.e. if you were to return to the UK for 5 or more years this amount would be reset.

 

Time spent in the UK or an unfrozen country for a holiday etc can allow you to upgrade the State Pension to the current levels for the period you are on holiday but you have to apply for it.

 

Also note that any other pensions from an occupational scheme should still increase annually as per the rules of that particular scheme.

 

You may also be entitled to extra increases in these occupational schemes if they make a GMP deduction (for pre 1988 pension component contributions) which takes account of your state pension increases, although in practise this is only a small amount. You have to inform your Occupational scheme that you live in a frozen country and they should automatically adjust the amount.

http://www3.hants.gov.uk/pensions/lgps/pensioner-information/lgps-payment-information.htm see the last paragraph re Guaranteed Minimum Pension.

Hi and thank you for your reply and links.

I thought if you were on a Bridging Visa for 804 you were still taxed in the UK (thought I had read that somewhere). Does that then alter the situation as regards uprating to state pension?

Our state pension was frozen the day we started to receive it as we were already in Oz.

Each time we return to UK we inform the relevent department, of the dates we will be there.

The pension is then increased to the amount it would have been had we never left.

It then reverts back to the frozen amount, and the extra is paid into our UK bank account.

No other pension eg from employment is affected, and ours continue to be index linked.

Hi and thank you for your reply and links.

 

I thought if you were on a Bridging Visa for 804 you were still taxed in the UK (thought I had read that somewhere). Does that then alter the situation as regards uprating to state pension?

I don't know in the above case but our position is this.

We are on the 410 retirement visa which is a long term temporary visa. So we are not on PR but live in Oz and have done for 13 years.

All our income comes from UK, so we are still taxed in UK.

The fact that we are on a temporary visa makes no difference to our state pension being frozen from the day we started to receive it.

Also just to clarify the 410 visa ceased in 2005? so not available to new applicants.

Surely your your pension is frozen at the level your were being paid when you left the UK? Please tell me it isn't actually going to be reduced when we leave?

Yes sorry I meant to say when you first draw the UK State Pension in Australia, so not backdated to when you first received it if you were living in the UK at the time.

Thank you ramot. That's very useful info.

Any other people on a bridging visa for 804? Info would be greatly appreciated.

Hi and thank you for your reply and links.

 

I thought if you were on a Bridging Visa for 804 you were still taxed in the UK (thought I had read that somewhere). Does that then alter the situation as regards uprating to state pension?

Whether or not you are still taxed in the UK is irrelevant (and a person only in receipt of the state pension wouldn't pay any tax anyway). What is relevant is where you live and are spending your pension. If you live in Australia you're assumed by UK plc to be spending your money in Australia and not putting your pension back into the UK economy. That's why they can give you a reduced pension with a clear conscience. Australians who move to the UK before retirement lose all entitlement to the Australian aged pension even if they've paid tax in Australia for 30 years so while you might feel you're getting a bad deal it could be worse.

There's no 'entitlement' to an Australian pension at all. You get it if you have a pretty low income and I believe you can continue to receive it even if you go to live in another country once you have qualified for it. They have cut it back a fair bit so you really have to be quite poor to get it these days.