Hi, My wife is an Australian Citizen and we are contemplating moving back to Perth WA, and her taking up employment there. I am a UK War Pensioner (recent conflicts!) and do not work as my pension provides enough income and I am deemed not fit enough to work, so we have switched roles and she is the breadwinner and I am the househusband, the pension in the UK is Tax Free, It is our intention to live with just my wife's earnings and to save my pension in a UK bank account, and transferring parts of it, if and when needed i.e. to buy/deposit for a house/car etc or to be used in an emergency, this is more or less the situation we do in the UK, mainly living off my wife's earnings which is more than adequate and using the pension as and when needed as a savings scheme for larger items.
Complicated I know!, Will I be liable for Tax on it in Australia?, a. If we do not have it paid into an Australian Bank Account but keep it in the UK, where it will continue to be paid and saved into a UK Bank Account. Transferring when needed.
b. Will I be liable for tax when/if we transfer any amounts/savings for e.g a house deposit/car etc.
c. If I have it paid/transferred monthly into an Australian Bank Account will it be liable for Tax in Australia or is it still deemed Tax free as in the UK
Told you it was complicated!!!
I cannot get any answers here, as far as the Veterans Agency UK here is concerned I am a full UK War Veteran and my Pension will continued to be paid tax free until my death (hopefully a long way away!) as my injury has been set at a level deemed by them and independent doctors and is unlikely to ever change.
I have already sourced the medication and costs that I will need when in Australia and sorted out most of the medical questions/care that I will need now and in the future, hopefully just the medication!! and I keep myself as fit as I can by exercise to reduce further debilitation and by maintaining a good lifestyle and diet.
So it is just the financial question of my War Pension as I do not wish to get into any trouble with the Australian Authorities, but do not want to be hammered by tax unnecessarily.
Any Veterans who have had similar problems or situations or anyone who can point me in the right direction to get the answer would be really appreciated, this move is important to us as we believe from our previous trips to Perth that my health would improve in the climate there.
In anticipation thank you for any help
Regards
Neil