Marisawright

I would agree with what others have said regarding financial advice on this especially with the amount involved, but a couple of things come to my mind and the first is why have two funds? you are paying two account fees. Secondly turning 60 does not I believe give you access to lump sums, it gives you the opportunity to open a 'transition to retirement' pension fund but lump sum payments are not allowed until you reach retirement age.

The rules are further complicated (and potentially costly) for when you are a non resident, and that applies to both lump sums and pension payments from super in how they are treated for tax purposes in both Aus & UK.

If you read my posts, that's exactly what I have been pointing out - that's why I'm saying that if he wants to take the lump sum, it's absolutely critical to withdraw the money and get it into an Australian bank BEFORE he leaves Australian shores.

I am not aware of any obstacle to withdrawing a lump sum from your superannuation at 60. Preservation age is 55.

Then there's a another whinging about "frozen UK pension" so what? Any shortfall below the Oz state pension level and Centrelink tops it up to the Australian pension level.

Well yes, IF they qualify for the Australian pension. I think the people complaining about the frozen pension didn't manage to complete the required years of work before reaching retirement age.

Yes, it just would be great if as we have worked so far for 5 years and not been a burden on the Government that another protocol was in place to transfer into PR. Still plenty of work left in us to contribute to the Country,

Yes I'm sure you will, but we all get old and you are no exception, I'm afraid. Thanks to modern medicine we all live a lot longer, but we don't live longer healthy - and most of us die of some kind of illness which may require prolonged care in our last days, months or even years.

Even if you work till you're 70, the equation doesn't add up - what if you live till you're 90, there's no way your 20 years of taxes will pay for 20 years of medical treatment, aged care, pensioner subsidies etc. That leaves me, the Australian taxpayer, to pick up the bill.

I do feel sorry for people who find themselves in this situation but on the other hand, I can see why the Australian government feels it's necessary.

The big snag is that if you keep the house, you'll have to submit an Australian tax return every year and you'll be subject to Australian tax on the rental.

That may not sound too bad - if it's a fairly new home, you would claim depreciation and could even make a profit BUT for the fact that as a non-resident, you'll get no tax-free threshold.

That means every penny of the rent will be taxed at 30%. Then when you do ultimately sell it, you'll pay double the Capital Gains Tax that a resident would.

I had a investment property in Darwin before I left, which paid me a nice income every year. The tax implications of keeping it were so bad that I sold it before we left. Wish I hadn't now as we will be going back!

Be careful. Paying tax on your lump sum in Australia may not mean that you won't have to pay more tax in the UK. Residency for tax purposes is the key to it, so find out the facts first.

He's talking about taking the lump sums BEFORE he leaves Australia. Once the money is in the Australian bank it's just money.

Thank you .... Thats good to know... I might just take them both out and pay the Aussie tax on them.... I topped up my UK pension to the 30 years years back so I expect a full pension there....although I think they might have extended it to 35 years . I came to Aussie in 97 so you say I can ask for that time too 2001 to be taken into account ? If not I might top it up..

thanks again for your advice..

We came to the conclusion that taking the lump sums before leaving was the least painful option - however we didn't do it, because we weren't 100% sure that our move to the UK would be permanent. As it turns out, I'm glad we didn't as I haven't settled here well at all - guess I've just become more of an Aussie than I realise after 30 years!

I'm not in Adelaide but hopefully some of our Adelaide members will be along soon.

I have a soft spot for Adelaide, it's a lovely compact city. I used to live out in country Victoria and if I drove to Melbourne, it would take me four hours to get to the edge of Melbourne and another whole hour to get to the centre - whereas it took me four hours to get to the edge of Adelaide and 20 minutes to get to the centre! Yet it's still big enough to have all the amenities you need. Beaches and wineries within easy reach. It's a restaurant and cafe culture rather than a pub culture.

However employment opportunities are definitely more challenging. Most of the big companies have their major installations in Melbourne or Sydney. Adelaide is also well known for being a "who you know, not what you know" culture.

I suggest getting on seek.com.au which is Australia's biggest job search site. Notice which agencies are advertising work in your field, ring them up and ask them for their opinion. Don't email - you'll get much better information in a phone call.

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.