miw54 Posted January 1, 2014 Share Posted January 1, 2014 Hi I am a British born Australian Citizen having lived and worked in both the UK and Australia over the last 25 years. I currently work in the UK for a Local Authority and have accrued a small government final salary pension which I am going to take in April this year before returning to retire in Oz. I have also qualified for some of the UK state pension and as I have turned 60 am able to claim that already. I have been searching forums to see if anyone else is asking the same questions as me but so far cannot quite find the answer although I have learned a lot in the process. I have ascertained that I can gain UK tax relief on both pensions when I become permanently resident in Australia but I am a little confused about the tax implications on my rather limited income in Australia. Am I right in presuming that I will only pay tax on the income that is above the usual tax free threshold for any resident Australian. Also, the big question is, if I return in May as intended will I have to pay tax in Australia on the lump sum that I will receive tax free in the UK as part of my local government pension as it will fall within the current financial year for OZ (i.e. July to June). would I be better waiting to settle back in Oz after the new financial year commences. At present I have no other income in Australia. Hope this makes sense and any advice will be greatly appreciated.:confused: Many thanks Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted January 6, 2014 Share Posted January 6, 2014 Hi The pensions should be declared in Australia as you point out and you should be able to claim a deductible amount for around 8% I believe of the UK State Pension (discuss with your Accountant here). The rate of tax you will pay will be based on your marginal tax rate after any allowable deductions and offsets have been taken into account. The current tax bands are found here: http://www.ato.gov.au/Rates/Individual-income-tax-rates/ Details of tax offsets are found here: http://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-you-can-claim/ Regards the lump sum, I believe that if you receive this in the UK as a UK tax resident and are not in Australia/an Australian tax resident there will be no need to delcare it here (again discuss with your Australian Accountant). Regards Andy Link to comment Share on other sites More sharing options...
miw54 Posted January 7, 2014 Author Share Posted January 7, 2014 Hi The pensions should be declared in Australia as you point out and you should be able to claim a deductible amount for around 8% I believe of the UK State Pension (discuss with your Accountant here). The rate of tax you will pay will be based on your marginal tax rate after any allowable deductions and offsets have been taken into account. The current tax bands are found here: http://www.ato.gov.au/Rates/Individual-income-tax-rates/ Details of tax offsets are found here: http://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-you-can-claim/ Regards the lump sum, I believe that if you receive this in the UK as a UK tax resident and are not in Australia/an Australian tax resident there will be no need to delcare it here (again discuss with your Australian Accountant). Regards Andy Many thanks for this Andy, I will check out the links. Kind regards Margaret Link to comment Share on other sites More sharing options...
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