Permanent resident receives UK Military pension

[shaznrog]

Hi, Have become permanent residents in the last year and my husband receives a full service military pension and a disability pension, one is non taxable and one is taxable in the UK. We have just had to declare these as an income due to our residence status changing, my question is .... if we submit a standard non complicated tax return each year ie PAYG we are always going to owe the tax man and we will be out of pocket, surely if this is a non taxable income it should be non taxable here? I have also been advised that we cannot get our military pension transferred over here and it hjas to stay in the UK for life???

Any help or advice on this matter would be much appreciated. Thanks in advance :wideeyed:

[Andrew from Vista Financial]

Hi Shaznrog

 

You really need to seek Tax Advice from someone that understands both systems therefore maybe try Alan Collet (a member on here) whom I am sure will be well equipped to deal with your question and advise accordingly.

 

The Disability Pension you are referring to, what is the source of this i.e private or government? I assume that this is the non-taxable pension income you refer to?

 

Generally a PR in Australia will have to declare their worldwide income in Australia. This income is then assessed for any tax liability and if applicable taxed according to one’s marginal tax rates (MTR).

 

You mention one pension is taxable in the UK, I understand that it is possible to have UK pension income paid tax free from the UK if residing in Australia and a permanent resident/Citizen thus only having it assessed for tax here in Australia. There are certain forms that must be completed and again you should seek advice in relation to this matter.

 

Your question around transferring the Military Pension, unfortunately as it is in payment it cannot be transferred to Australia.

 

I hope this helps,

 

regards

 

Andy

[shaznrog]

Hi Shaznrog

 

You really need to seek Tax Advice from someone that understands both systems therefore maybe try Alan Collet (a member on here) whom I am sure will be well equipped to deal with your question and advise accordingly.

 

The Disability Pension you are referring to, what is the source of this i.e private or government? I assume that this is the non-taxable pension income you refer to?

 

Generally a PR in Australia will have to declare their worldwide income in Australia. This income is then assessed for any tax liability and if applicable taxed according to one’s marginal tax rates (MTR).

 

You mention one pension is taxable in the UK, I understand that it is possible to have UK pension income paid tax free from the UK if residing in Australia and a permanent resident/Citizen thus only having it assessed for tax here in Australia. There are certain forms that must be completed and again you should seek advice in relation to this matter.

 

Your question around transferring the Military Pension, unfortunately as it is in payment it cannot be transferred to Australia.

 

I hope this helps,

 

regards

 

Andy

 

 

 

Hi Andy

 

Thanks for your response I will try and locate Allan. The disability pension is military pension, so paid by Government. I will source a tax agent as per your advice and hopefully get it sorted. Thank you very much for your help and advice. Kind regards :smile:

[SWMBO63]

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~IT~basic~exact:::AND~2586~basic~exact&target=EA&style=java&sdocid=ITR/IT2586/NAT/ATO/00001&recStart=1&PiT=99991231235958&recnum=4&tot=4&pn=ALL:::ALL

 

Try this link it may help with the disability pension.

[shaznrog]

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~IT~basic~exact:::AND~2586~basic~exact&target=EA&style=java&sdocid=ITR/IT2586/NAT/ATO/00001&recStart=1&PiT=99991231235958&recnum=4&tot=4&pn=ALL:::ALL

 

Try this link it may help with the disability pension.

 

 

Thank you that is awesome, it certainly helps clear up the query of whether or not a disabilty payment is taxable here :biggrin:

[shiner]

Just found this post, very informative. It means I may take the leap and come to Oz on a more permanent basis.