Marisawright

Neither of the funds are self managed... I am sure I can't wait until I am 60 to go back but I was going to try to leave the funds in place in oz for as long as I could.

OK, if you can't wait till you're 60 then you have two choices - either take the lump sums now and resign yourself to paying the Australian tax on that (no British tax payable), OR leave the money in the funds, and convert them to pensions when you are ready. Or maybe you could cash in one, and convert the other.

The main thing to understand is that withdrawing the lump sums after you've left Australia isn't an option unless you want to lose a huge chunk of the money in tax, so it's vital to decide what's best BEFORE you leave the country.

One other thing - have you asked for a UK pension forecast? You won't get the Australian govt pension, but you will be entitled to a UK one. Once you're resident in the UK you can apply to have your Australian work record up to 2001 recognised, which will increase the pension you can get. You need 30 years' work record to get the full UK pension - if you're still short after claiming your Aussie record, you can pay extra NI contributions to make up the difference. The pension forecast will tell you how much and how to do it.

https://www.gov.uk/future-pension-centre

We get a mention!

http://www.telegraph.co.uk/expat/expatlife/11723866/Is-the-sun-setting-on-the-Australian-dream.html

What do you mean by "seeing" this guy? Age isn't a problem, but you'll need to prove that you've been living together for at least 12 months.

Some people do get accepted when they haven't lived together, but there has to be a really good reason why circumstances have stopped you setting up home together.

Your relatives aren't closely related enough to sponsor you.

To get sponsored by an employer, your oh would still need an occupation that's on the CSOL. Besides, that sponsorship would be for a temp job only (457 visa).

A 457 visa is a great choice for someone wanting to experience Australia for a few years, but it's a risky choice for a family. For one thing, you are not entitled to benefits (e.g. child care subsidies, free schooling) in some states, and that can make it very expensive. Also, your oh would be dependent to that employer for four years: if the company restructured and his job disappeared, or the company went bust, the whole family would have 90 days to leave the country. Immigration won't care if your children are in the middle of exams or if you have a house to sell - you have to go.

Wow..... Thank so much for that info... Plenty of options there... I just have to determine the best way.... Thank you again..

Yes plenty of options there, but all of them will cost you a percentage of your super fund in tax - sometimes a very big percentage.

If I were you, I would stay in Australia until you're 60. Then you can withdraw the entire lump sum from both funds tax-free and have them paid into your Australian bank account. Then when you arrive in the UK, you can transfer the whole amount to your UK bank account using Moneycorp - tax-free, because it's just money.

You'll save so much money on tax, it will pay for one or two holidays to the UK every year till you're 60.

One last thing - if either of your funds is a self-managed super fund, then you'll have no choice - you'll have to close down the fund before you leave Australia, or you'll be taxed by the Australian government as a non-resident - which will cost you 40%.

From what I've read so far, if you are a UK resident for tax purposes and you receive a lump sum from your superannuation (pension) fund then the Inland Revenue regard it as an unauthorised payment which will be taxed at 55%. I am in the process of finding out myself exactly how it will affect myself and I would advise others, especially if you have $600,000 to consider, to find out for themselves. Get professional advice or contact the Inland Revenue yourself is my advice.

 

My plans are on hold until I know exactly where I stand as 55% is an eye watering amount to pay on top of the 15% tax paid putting it in.

It's one of the reasons we decided our sojourn in the UK had to be temporary not permanent - no matter what you do, there seems to be a tax hit and our super pot is small enough already. I've had conflicting advice about how much tax we'd pay on the lump sum but eventually we put it in the too-hard basket, frankly!

Does anyone know what the process is for transferring my oz super funds to the UK when I go back later this year ? I am 57 this year and eligible to access my super at 55... I have two funds with a value of approx 650 k.. Think of leaving one of the funds here and would try to leave it until I am 60... I believe that would save on tax implications in oz.... Really dont know which way to go ? Would anybody have an idea of what you must do with the fund assets once they are in the UK ?

All you have to do is tell the super fund that you want to withdraw your balance. Do this well in advance so they will pay it into your Australian bank before you leave.

Once the money is in your bank it's just money, there are no rules about what you can and can't do with it. Once you've got set up in the UK you can transfer it to a UK bank account using a service like Moneycorp (if you join through these forums they won't charge you fees,which will save you a packet).

If you were already over 60 that would be a no-brainer, no tax to pay and you can do what you like with the money. However because you're 57 you'll have to pay some tax no matter what you do, so you should get advice from an accountant to work out which option will be less painful.

As you know, if you withdraw your lump sum now, you'll pay some tax. If you wait till 60 to withdraw your lump sum, you could do that tax-free if you were living in Oz - BUT if you're a UK resident by that time, the UK government might take a HUGE chunk in tax, because it will be income. So you need someone who knows both systems to work out which way will cost you less in tax.

There is a third way to consider too - leave the funds in Australia, then convert them to pensions when you need them. You will have to declare those pensions to the UK tax office and they'll be taxed as normal income - but you get a tax-free threshold, same as Oz.

I am a little worried about being so open if there is a chance of being blacklisted.

Sorry, I think you misunderstood my post (and I misunderstood yours). I thought you said you were going to ask an agent whether to keep the cat a secret - that would be a very bad idea. You can't get blacklisted for admitting you have a cat. If you feel uncomfortable about keeping it quiet, then just go ahead and be honest - you'll miss out on a few rentals but you will find one.

Thanks for that ,, are you associated with the Westly Russell ?

WRussell is a registered migration agent and has helped several members of PomsinOz

As Snifter says, the correct process is to apply while you're still in the UK and the processing time is quicker. If you decide to apply in Oz, they make you wait longer!

However, more importantly - if there's any chance at all that you might want to come back to the UK in the future, your partner should look into getting British citizenship before he goes. You'd be surprised how difficult it is to get an Australian husband into the UK to live - if you don't meet the financial requirements it's simply impossible, and the amount needed just keeps going up.

We have been back in the UK now for nearly a year ....and then ... our darling son has been diagnosed with type 1 diabetes

 

I wonder what would have happened to us if we had stayed in Oz and he was diagnosed anyway, how much money would it cost for the prescriptions alone. We always said that Australia was a very expensive country to be ill in.

It would depend what kind of visa you were on and what kind of health cover you had, and also what you chose to do. GP's in Australia often refer patients to private specialists without thinking, they're so used to people having private health cover - but if you so wished, he could've been referred to a public specialist in a public hospital and would've had just as good treatment as the NHS, free.

I've had treatment for my asthma in both the public and private system in Australia and frankly, I found the clinics and specialists in the public system were better!

Big strides are being made in the treatment of diabetes so good luck, I'd say the future is bright for your son in spite of the diagnosis.

In July 2010, the U.S. Department of Transportation released statistics that showed short-nosed breeds of dogs—such as pugs, Boston Terriers, boxers, some mastiffs, Pekingese, Lhasa Apsos, Shih tzus and bulldogs—are more likely to die on airplanes than dogs with normal-length muzzles. In fact, over the last 5 years, approximately one-half of the 122 dog deaths associated with airline flights involved these short-faced breeds.

Some breeders should be shot for having bred these dogs to the point where their short noses pose a risk to their health. I remember reading that even pugs had more prominent noses fifty years ago, it's humans who have bred them for flatter noses and thereby caused problems for the dogs, not just when they fly.

It's the same with collies (look at Lassie in the old movies and the width of the head of a normal collie - no room for the brain!) and Alsatians (hip dysplasia hasn't always been a problem).

The average person buying a dog has no idea about this cruelty and is then faced with the consequences.

If the agency is offering to find employment for you, I'd be suspicious. Genuine migration agents do not normally source employment.

Are they MARA registered?

It doesn't make any difference whether you get it paid into a British bank or an Australian one, the tax implications are exactly the same.

I understand that the UK govt will pay the money into an Australian bank account if you want - but if you don't actually need the money every month, I would recommend having it paid into a UK bank account, and transfer it when you need it.

We do the same thing in reverse. All our savings and my income are generated in Australia, but rather than have money paid into a UK bank account, we have it paid into our Australian one. Then we transfer lump sums when the exchange rate is favourable.

Thanks,

 

I printed off the Application form, One of the requirements is that you need State sponsorship, How and what is this ?

It means you need to decide where you want to live, then apply to that state to sponsor you for the visa.

Have you read all the investment requirements for the visa?

I quite believe you, Marisa. Having driven around London, I've no desire to drive around another large city as long as I live.

 

Australian cities are very different from London though traffic can still be a nightmare because they are so spread out.

That said, I would say - don't try to make decisions until you get here. Sign up for a six-month lease on a rental flat, then take the time to look around. Life out in the country in Australia is totally different from life in the country in the UK. Although everyone thinks Australians think nothing of distance, many Aussies despise long trips except on holiday. You may find few of your colleagues live rurally AND people won't travel to come to dinner parties or barbies - so you may find a quiet, leafy, middle-range suburb has more amenities and a better social life - plus a better commute of course!

Another thing that surprised us about flats in the UK (at least in the South of England where we've been looking) is that flats in trendy inner areas are often grotty and old, as you say. That is the case in some parts of Melbourne and Sydney but there is far more new development than in the UK so a lot of flats in the inner suburbs are far from grotty!

I think longer term, we'll definitely look at buying something out in regional Victoria: from what I see, there are lovely houses in reasonable areas for the same price as pokey flats near the CBD in Melbourne.

Just bear in mind that Melbourne is a huge, sprawling city - by the time you get out in the country, you're a hell of a long way from the CBD! Make sure you look for places that have good public transport as you really don't want to have to drive, believe me.

Welcome!

Don't worry about your credit profile - it doesn't work like that in Australia! You'll only need a month to find a long-term rental - estate agents will be happy to take you on provided you can prove savings, or a job offer, or can pay six months' rent upfront.

The whole process of getting a flat is much faster, too - you go and look at the place, submit an application, and if it's accepted you'll get the keys within days. I couldn't believe how long it took to do the paperwork and get keys to our rental place in Southampton, so slow compared to Oz!

You don't negotiate on rent - what the ad says is what you pay, (unless you want to offer a higher rental to beat other applicants). You do need to be organised - bring written references from your current/previous landlords, and be ready to submit an application at the inspection.

Wise move to avoid Sydney - I love the place but it's pricey. Melbourne is more affordable, though it's one of the more expensive cities by Australian standards.

I would Quoll but he's very much "anti UK" and I have a better chance of growing a third boob than getting him on UK soil again.

That's true, but there are parts of Australia that are far less alien, and more civilised, than Darwin - so that would be a win-and-slightly-less-lost compromise!

My husband is currently studying an Engineering degree via Open University (he's 2 years into a 6 year course). I'm looking at the option of him getting a Student Visa...after his two full-time years of studying in Australia (plus possible work experience of up to 40hrs per fortnight) it could mean that by the time he finishes his course we may have enough to points to apply for a Skilled Working Visa

If you are going the Student Visa route then it's absolutely crucial to do a comprehensive budget and make sure you'll have enough funds to live on for the duration of the course. It will be very expensive. You'll need to budget for the cost of full school fees (or child care fees) for your children (you'll get no subsidies or tax benefits). Check domain.com.au and realestate.com.au to find the cost of rental, and do a trial shop at coles.com.au to understand the cost of food.

How does your husband feel about the practicality of undertaking a full-time engineering degree and also working 20 hours a week? An engineering degree is quite full-on, so he'd be working very long hours. I also wonder if he'd find an employer willing to work around his lecture times. As an engineer he doesn't need the work experience so that's not an issue, however you have to consider what you'll live on.

I'd say it's doubtful he would qualify for a skilled visa at the end of the course, so you'd have to bet on him finding a 457 (sponsored) visa instead - that is a gamble and you'd have to be prepared to move back to the UK if he can't get one. So in your budget, you need to include a contingency for moving back again.

If you're from SA then I can understand the pull of Australia as a place to bring up children. However we've had a few "stay or go" discussions on here recently, and a couple of posters have said that having moved back to the UK, they feel their children have a richer education in the UK, and will have a wider choice of employers and better career opportunities in the UK and Europe when they're grown up - particularly as Australia is on a decline with rising unemployment. Obviously there is more to life than that, so it does really depend what you mean by "a better future".

Great post, I particularly liked this sentence which I'm sure describes a lot of PomsinOz who dream of returning:

" I do recognise that as I have been living in Australia for 14 years I probably don't fit in as much I had romanticised in my head."

I must say that until I moved back here, I hadn't realised just how much Australia had changed me!

It's good to hear you're managing to find the positives, best of luck for the future.

As a nurse, if you've got experience then you may be able to apply for permanent residence in your own right - in that case you won't be tied to an employer.

He did the right thing turning down the job in Sydney, IMO. I love many things about Sydney, but few people can afford to live in the vibrant areas I enjoy so much - it's likely you would've ended up in one of the cheaper areas which are little more than dormitory suburbs with few amenities, pretty soul-destroying!

I'm sure he will find just as good a job in Brisbane eventually.

Thinking cap on -another query is can I transfer from Oz to Uk with a Moneycorp account opened from the UK

Ours savings are still in Oz and we will need some here to use for some expenses ,other expenses will be put on UK credit card then paid off from the funds when our house sells

It doesn't matter where you opened the Moneycorp account, you can use it to transfer money in both directions. We are in the same situation - all our savings still in Oz. What we do is transfer lump sums from our Aussie account to Moneycorp when the exchange rate is good, then transfer smaller amounts from Moneycorp to our UK account as needed.

I feel I would get used to the heat, we go to florida and it gets very hot

Florida and Queensland are pretty similar in heat and humidity in summer. If that's too hot, I would look further south.

From your previous posts, it seems that a major part of your motivation is financial - you see yourself being able to afford a bigger house with a pool in a nice suburb, perhaps with more free time. TBH if that's your motivation then you need to rethink. Australia is no longer a cheap place to live.

There are plenty of posters here who are better off in Australia - but check how long they've been here, because most of them arrived when houses were cheaper and opportunities greater. I notice more recent arrivals posting to say they love their new lifestyle in Australia BUT financially they're actually worse off than they were in the UK! So you need to do your sums very carefully.

Your post about running out of goals strikes a chord. The thing is, you're not a corporation - you don't have to keep on achieving bigger and better things every year. It is just possible you've arrived at a plateau of happiness and it's time to sit back and relish it. Maybe your next goal will be an investment property, or a holiday home on the Italian Lakes!