Ferrets

10 hours ago, bluequay said:

Is that definately the case? we paid to make up a couple of partial years for my wife yesterday, and one of the questions they asked was whether you were resident in the UK for that period. You need to inform HMRC that you are no longer resident for tax purposes when you leave, so if their systems are in anyway joined up they will know!

I’ve just back paid for 2019-2023, and now on a DD for class 2, no issues with non residency and in fact if you are overseas you can get class 2 which is much cheaper.

For the OP it depends how long you have been here; HMRC have extended the period you can backdate to 2006, but this is only available until April 2025, with a long turnaround time for processing.

@Andrew from Vista Financial the CF83 form seems to have changed so there is no option to select which class you are applying for, is that to try and dissuade class 2 applications?

4 hours ago, Ken said:

Yes, it's all the RBA's fault for not knowing about all the sanctions on Russian Oil that were going to be imposed in February 2022 when they made that promise (or prediction as they would prefer it to be called) at the end of 2020. They're the RBA it's their responsibility to know when wars are going to start. What kind of cheap plastic crystal ball are they using?

Besides the only people complaining about the tax cuts for the lower paid are those who are unaware of the Trickle-Up effect. Unlike the fictional Trickle-Down effect, this one really works. The more money the poorest in society have, the more is the amount of money that flows to the richest in society.

lol just making the point that situations change, so pointing to an election promise pre inflation crisis seems equally pointless

It might be worth checking if you can also make NI contributions from Australia; there’s a window to do this going back to 2006 (until April 2025) at a very cheap rate (approximately $350 for each year if you qualify for class 2 contributions).

I’d suggest that wherever you are likely to retire that should be something to look into as the UK pension, although taxed in both jurisdictions is not means tested.

There are some good threads in this section on that.

Good luck!

15 hours ago, InnerVoice said:

I totally agree, one of my friends worked for Enron for several years and lost his job and all his company shares on the same day. Fortunately he took it in his stride and has done very well for himself since. If the OP has a mortgage with either an offset or withdraw facility, another idea worth considering is to sell the shares and pay off part of their mortgage. Current interest rates for mortgages are around 6% so that isn't far short of average long-term gains on conservative super funds, but the OP would have the advantage of still being able to access the funds if required.

That’s a good shout, when the trading blackout is over I’ll look to cash out shares that I have held long enough for the CGT discount and then drop into an offset account.

Then in June we’ll run the numbers with my wife’s YTD earnings and then work out what concessional payment to make to her Super.

Thanks all!

6 minutes ago, Ausvisitor said:

I'm not saying so much that I'm annoyed at the change, I'll still get nearly $5k more so that's a bonus (just not as much as promised)

It's the fact he promised in the manifesto, and countless times since that it would be wrong to wind back that change and the whole leadership agreed and promised they wouldn't.

How can we trust them now?

To be fair the RBA promised interest rates wouldn’t rise, the government is just responding to different circumstances.

IMHO they should have announced this (or variation of) much earlier in the inflation cycle along with raising corporation tax alongside interest.  If that had happened I think inflation would have been tempered more than just using interest rates as a blunt tool, hurting those at the bottom the most.

At least with this everyone gets something and the general consensus from economists is that it’s a better approach.

Crossing my fingers for the interest rates to start cooling a bit soon

Thanks for the thoughts, it's really appreciated.

We don't have any intention to move back to the UK, and no desire after a trip back last year but never say never as kids will have both passports soon.

The benefit in my mind is that if my wife make extra contributions it means our combined super starts getting to the level where an SMSF might make sense.  I'm weighing that up againstcontinuing to hold shares, being exposed to any company specific impacts and then potentially being hit with CGT down the line.

My wife does have some unused concessional carry forward which again is why I'm weighing this up, and noted on the co-contribution.

Definately some mulling over to do - I can't do anything immediately as we're in a trading blackout atm.

Thanks all!

I have an option to sell some shares that I got via an employee share sheme, with minimal CGT due to holding for more that 12 months and minimal market price movement.

This would allow my wife to salary sacrifice a higher proportion of her salary into her superannuation, and I believe also unlock government co-contribution and low income offset.

Whilst it would be broadly converting one form on investment for another, is it better to have concessional contributions banked vs shares in the long run?  We're early forties and playing catchup on our Australian super at the moment (alongside also making voluntary NIC to HMRC).

Thoughts?

Cheers!

12 hours ago, Cheery Thistle said:

Not sure at this point, hoping things will become clearer after our visit! 

Looking at the options it’s either city for the top top schools, or then Bayside (including Cannon Hill) for CHACs / Ormiston.

Our kids are at the Moreton Bay Colleges and really enjoy them, MBC seems really good in particular for our daughter though there do seem to be some marmite reactions to it.

It also depends on where you settle as well - would you locate for the school or choose a school in your location?

 

I've sent off my application for class 2 NICs, working up until we migrated in 2016.  

My wife worked until 2014, and then was a stay at home Mum until we migrated.  She did get NIC credits over that period as a child benefits recipient.

I spoke with HMRC about making voluntary payments, and they were unable to advise over the phone if she should be making class 2 or 3 voluntary contributions, and recommended sending an application in for class 2 for consideration.

With a turnaround time of 44+ weeks for applications at the moment is it worth going through the process to try and get class 2?  Or as I suspect it's clear cut that she can only get class 3 that we go straight to the paying for class 3?

Thoughts appreciated,

Cheers!

Applied 28th April and then had the test 17th July.  Still checking the inbox daily for approval

I've just spoken with HMRC, and they've advised a 44 week wait once the CF83 is receieved 

• As I believe I am eligible for Class 2 I'll have to get my application done and suck up the leadtime.
• I was also advised (I believe incorrectly), that my wife, who was not working (but recieving child benefit) when we left, but is now working in Australia may also be eligible for Class 2.  Based on what I read I don't think this is the case, does anyone have any experience on this?

Cheers,

Ferrets

4 hours ago, Andrew from Vista Financial said:

 

Taking out of the equation the other points mentioned/raised in all of the previous posts and this is not to say that they are not relevant or valid points but to solely focus on answering your questions.

Questions I had;

• In the future would I be able to transfer my defined benefit scheme at Cash Equivalent Transfer Value directly to a QROPS SMSF or does it need to go via a personal pension scheme? 

Potentially, however if the pot of money excluding the Applicable Fund Earnings (AFE) is more than the Non-Concessional Contribution Cap (currently $330,000 if utilising the bring forward rule) then this would create a breach. That may or may not be an issue depending on other factors at the time.

• If we were to move to an SMSF now in Australia, is it straightforward to adjust the deed to make it QROPS compliant at the appropriate time to support transfer. 

I'd say that yes this is fairly straighforward (so long of course as the criteria of QROPS is met).  

• I'm trying to get my head around whether it's worth taking the cash value from the defined benefit sheme now to move into a defined contribution / SIPP scheme and potentially grow that further whilst also protecting the value of the pot for my spouse & family; the value of any residual reduces by 50% in the event of my death.  My gut feel is that given the 19 x payback period this makes sense.

Formal Advice would be required on this to answer that question and it is actually a mandatory requirement anyway (from an FCA stance) if looking to transfer out of a DB Scheme.

Regards

Andy

 

Thanks Andy,

I can see how the AFE caculations would work for the existing defined contribution schemes, i.e. value at time of transfer less value at time becoming a resident.  How would the AFE calculations value a scheme that be a defined contribution at the time of transfer but was originally a defined benefit scheme, or does this create a barrier?

Does the $330k represent a hard ceiling for the value, or can it be repeated, i.e. $330k transferred in year 1 (using the bring forward), $150k transferred in year 4?

Some of these technical points start firming up whether it's actually viable!

Cheers

20 hours ago, Marisawright said:

So true.   It's not something that really hits you until you retire:  the fact that your superannuation pot has to provide a pension for the rest of your life, but you don't know how many years that will be.  When you do the calculations, you realise that though the balance sounds impressive, it's not going to feed and clothe you for 35 years (if you're lucky enough to live to 100).   Of course there's the govt pension to fall back on, but governments can't afford to be generous with pension increases.

@Ferrets, for that reason, I don't think 'simplification' is a good enough reason to give up a defined benefits pension.  It's like an insurance policy, in case you live to a very old age.

One other point:  you say you have "no current intention" to leave Australia.  I wouldn't touch your UK pensions until you're able to say, "We are absolutely sure we will live in Australia till the day we die".  

I say that for two reasons.  One, once you've transferred the pensions to the Australian system, you can't transfer them back again.  Two, if you have an SMSF, you'll have to wind up the fund if you return to the UK, or appoint someone else as trustees.

Thanks Marisa,

This has highlighted to me this is more of an immediate question on the vehicle used in the UK at the moment vs moving it to Australia; that part is quite a few years away for me anyway, and would become a technical solution at that point - we'll have been in Australia almost two decades at that point so should be in a good position to answer the question of staying with full certainty

Cheers again for the feedback!

21 hours ago, InnerVoice said:

I think your questions go well beyond what can be covered by general advice. You should definitely consider getting professional advice from an organisation with expertise in both UK and Australian tax affairs, in my opinion.

Coincidentally, I was in exactly the same situation as you pension-wise. I had a defined benefit and two defined contribution schemes, which I consolidated into a single SIPP prior to leaving the UK in 2011. I recall the cash-out value on the defined benefit scheme was about 20x, and my IFA advised me to cash out and consolidate my pensions into a single on with significantly lower fees, which is what I did. I was about 45 at the time so a long way off retirement so plenty of opportunity for those funds to grow, but I think you are likely to receive different advice based on your age. Giving up a guaranteed income for live is a decision that should never be taken lightly. My IFA went away and modelled the possible outcomes first, which I believe is a requirement in this situation. It' isn't something that should ever be left to 'gut feeling'.

Thanks for that - gut feel comes before advice, and the mechanics to withdraw from the defined benefit have a few hurdles to formalise any thought process.

Whilst I said a few years off 55, I meant a good few years, so interestingly in almost the identical position to you in 2011.  With inflation indexation at around 3%, I would imagine that a well performing SIPP consolidated with other pots has the potential to outperform.  Similarly I remain concerned around the residual benefit to my spouse of the current defined benefit vs a SIPP. 

A few things to think of (alongside making sure my NI contributions are up to date), thanks for your feedback!

Hi there,

Working through a few bits and pieces at the moment, and one of those is what I should do with my UK pension pots.  No rush, as I'm a few years off 55, but wanted to start the thought process going.

• We've been in Australia for 7 years, and no current intention to return to the UK other than for occasional holidays.
   
• I've currently got 3 UK pots; a defined benefit and two definded contribution shemes (regular schemes not SIPP).  The cashout value for the defined benefit is 19 x the annual pension, with a retirement age of 65.
   
• The current thought process is that when possible I would like to bring my UK pensions out to Australia, with the potential for reduction of tax at point of withdrawal and overall simplification.  This may include consolidating all of the existing pots under a single personal pension.
   
• We are at the threshold where it makes sense to move our Australian superannuation pots into a SMSF (potentially QROPS qualifying).
   

Questions I had;

• In the future would I be able to transfer my defined benefit scheme at Cash Equivalent Transfer Value directly to a QROPS SMSF or does it need to go via a personal pension scheme? 
   
• If we were to move to an SMSF now in Australia, is it straightforward to adjust the deed to make it QROPS compliant at the appropriate time to support transfer. 
   
• I'm trying to get my head around whether it's worth taking the cash value from the defined benefit sheme now to move into a defined contribution / SIPP scheme and potentially grow that further whilst also protecting the value of the pot for my spouse & family; the value of any residual reduces by 50% in the event of my death.  My gut feel is that given the 19 x payback period this makes sense.

Any thoughts and opinions greatfully recieved.

Cheers,

Ferrets

We live in Wynnum and really enjoy it, but not a CBD commuter.

When we arrived we stayed in Brisbane holiday village in Eight Mile Plains.  It was an adventure with a 4 and 2 year old, but allowed us to find out feet.

We were there two months before moving to Wynnum (I was.looking for work rather than moving to job).

There is a busway at the nearby Westfield that is quick into Southbank.

Good luck.

18 hours ago, InnerVoice said:

 

Sydney or Melbourne is just a rhetorical question, and the source of endless debate over the years. I would also choose to live in Brisbane than the aforementioned cities, although I think it will take more than bike path at Springwood to solve the current infrastructure problems in S E Queensland.

Totally agreed on that bike path, was only meant as an example of what is being done in the corridor, and there's still space to get a lot of infrastructure in that would be harder in the other cities.  Trains would be a much bigger solve!

On 17/04/2023 at 13:55, InnerVoice said:

Just read this morning that Melbourne is now bigger than Sydney after Melbourne city limits were expanded to include the 'suburb' of Melton. I say suburb in the loosest sense of the word, as it is clearly a separate town with a good 10km of countryside between there and the most outer suburb of Melbourne.

Population growth doesn't seem like a statistic to be proud of in any case, but one wonders if this is just a continuation of the 'Which is better - Sydney or Melbourne?' argument, that some hold dear.

It's a simple question to answer which of the two is better.....Brisbane 

I think that to your later point about the eventual merge with the GC (and also the SC) too, that there is still an opportunty for infrastruture into the corridors to support, and can see the effort that is being made with the bike path etc at Springwood.  Would be good to get the trains fixed at the same time!

On FX rates more than 2.2x in accounting.  Cost of living is about 1.5x, so overall a win, but I am in Qld.

Working hours vs Europe is +20%.

Overall though the right mix for us.

3 hours ago, Corrina said:

Thank you Amber. Yes I think it's the 190 I can apply for. As advised by a registered migration agent. It breaks it down a little but I'll definitely look into a few others as a second option. When the person above also commented, saying you need around 30k I thought he meant £30k but I think he meant AUD$$ which seems much less daunting!  

Unfortunately our cost of moving was around GBP £30k all in, excluding car purchase bit including two months of car hire.

I would also check out what visas can make entry at the moment, think you need PR.  I also know families that have struggled to move to PR from a temporary visa.

The Costa come over time, occupation  review, medical, visa so not a pump sum.  However flights, accomodation, shipping container and car hire were the big ones.

Best of luck and I hope you find an option that works for you.

Hi all,

Family members onshore have their 600 visa expiring soon. 

They are struggling to depart, with flights repeatedly cancelled. 

Has anyone been able to extend the 600 visa in Covid time?  Or will they.need.to apply for further 600 and move to bringing visa?

Thoughts appreciated

10 hours ago, Barnyrubble said:

We have full medicare cards but they should not have been issued as we do not live here. We told them but they were not interested.

So an earlier comment said 804 holders qualify but 804 applicants (on bridging whole waiting 30 years for grant?) aren't???

This is all semantics.

804 holders get medicare as residents.

804 applicants are not not eligible.

British citizens (as I understand) on a bridging visa are eligible for reciprocal Medicare.

My in-laws on visitor visa get new Medicare cards each time they come over.

Hope that makes sense

24 minutes ago, Barnyrubble said:

We are in contact with an Australian  Mira agent but they are visa agents and do not have knowledge of property laws.  

Contact does not mean active support.

You are right about separation of visa and property expertise, hence the nudge to @Alan Collett who deals in parent and tax issues.  

You need a frank assessment of your own circumstances; if you will be reliant on UK pension it will be hard, and realistically you need to be self funded in retirement unless you are dual-living (which is a different can of worms)

However you proceed it must be hard to make a choice in flux during these times, and hope it works out well.

2 minutes ago, Barnyrubble said:

As i understand it the grant of the 804 is up to 30 years and the 864 about 5 years so until then we would be bridging. The medical isn't too much of an issue as its reciprocal. It's all the land tax and surcharges in addition to extra stamp duty that is crippling.

Stop it.  Land tax is irrelevant if you are migrating (staying), and no cost.

Your understanding of the 804/864 seems off, you need a medical examination before grant of visa rights.  

Medical costs on the reciprocal agreement with the UK are covered in part, but hey I wouldn't want have that cover only.

You need to consult an agent for strategy and your own peace of mind.