Paying Tax in Oz on UK pension????????

[Cal2]

My OH has a pension in the UK, which is taxed, he has been told that because of it he'll need to pay more tax here and that I wont be classed as dependent because I have a smallish pension in the UK, totally confuses me, especially when we have a house in the UK and supporting a son at Uni, can someone advise or point us the right direction for good advice

thanks

Cal2

[Mike@Bonbeach]

Hi

We are retired here in Australia, and both receiving Age Pensions and private pensions from the UK. All pensions are paid UK tax free into our Aussie bank accounts and is considered earned income as far as Australian Tax Office is concerned. There is about 8% tax allowance on the Government Aged pensions I believe.

Mike

[Ken]

If you are Australian Residents (if you are in Australia on a Permanent Visa you are Australian Residents whether or not you have a house in the UK) then you have to pay Australian tax on your worldwide income. There's a double taxation agreement between the UK and Oz so any tax you've paid in the UK can be offset against your Australian liability but if you are paying less tax in the UK on this income than is required in Australia then yes you need to pay more tax.

 

The dependent spouse tax offset that you are referring to is being phased out and is now received by very few couples. To qualify the taxpayer has to be earning less than $150,000 (that's including all fringe benefits, pensions and other income), the spouse has to be earning less than $9,702 (to receive anything and less than $282 to receive the full benefit and again that includes all fringe benefits, pensions and other income) and the spouse has to have been born before 1st July 1971 (or meet some other eligibility requirement). I'm not aware of any tax deductions being available for having a son at Uni but I'm sure it's expensive so perhaps we should start a campaign for one.

[Cal2]

thanks thats cleared it up

Cal

[Andrew from Vista Financial]

thanks thats cleared it up

Cal

 

 

Hi Cal

 

I see that your signature shows a 457 visa, if this is the case things are a little different to being a permanent resident.

 

Generally temporary residents only declare their Australian income in Australia and not worldwide income.