I will be rolling my super into an income stream in Australia and will therefore be deducting a set amount out of it which will be transfered to the UK. As that will be income in the UK, I will have to tell the department of pensions there and my total income (I get a part UK pension) will be what is taxable - that is if my income is over the tax free threshold in UK. If you were to stay in Oz and take it all out then as far as I am aware it is tax free over the age of 60 but then it depends what you do with it! If you are still here on your 65th Birthday then you can apply for the Aussie aged pension - if you leave before your Birthday you can't. Please note everyone that retirement ages now vary depending on when you were born so some people may have to wait until they are 67 for example. If you take it out and keep it in your current account it would become an asset and you probably wouldn't be able to claim a pension because your assets would be too high! If you put it into an income stream, then the same rules apply as above for the UK - only the amount that is withdrawn (either monthly, 3 monthly, annually or whatever you decide) is counted as income and your aged pension here would be reduced slightly depending on how much you withdraw. At the end of the tax year you would get your statement from Centrelink and another from whoeverf you have your income stream and presumably it is all income and therefore taxable - again only if your total income is over the tax free threshold. The remaining capital still in your income stream fund would not be taxable - only the amount withdrawn. This is what super was set up for - to supply an income in your old age. The UK is doing exactly the same although it has a different name etc.
