Jump to content
fattony

QROPS query on Tax transfer

Recommended Posts

Hi All,

 

just looking a bit of advice..

 

been in Aus since Aug 2011 and just became a Permanent Resident in Jan this year 2014 ( so PR 9 months approx) , decided to transfer my Private Pension into my qualifying Aus Qrops fund ...

 

wasn't really a large amount around $68k in Aus after currency conversion ..

 

I have just received a letter from my Aus Super fund asking me to pick one of two options on a NAT 11724 ATO form and sign and return ..

 

looks like I have to pay 15% tax on my transfer hopefully I'm reading this wrong ..I have until 20/09/14 to advise my super fund on NAT 11724 !

 

As usual any and all advice appreciated :)

Share this post


Link to post
Share on other sites
Hi All,

 

just looking a bit of advice..

 

been in Aus since Aug 2011 and just became a Permanent Resident in Jan this year 2014 ( so PR 9 months approx) , decided to transfer my Private Pension into my qualifying Aus Qrops fund ...

 

wasn't really a large amount around $68k in Aus after currency conversion ..

 

I have just received a letter from my Aus Super fund asking me to pick one of two options on a NAT 11724 ATO form and sign and return ..

 

looks like I have to pay 15% tax on my transfer hopefully I'm reading this wrong ..I have until 20/09/14 to advise my super fund on NAT 11724 !

 

As usual any and all advice appreciated :)

 

Yes unfortunately this does sound about right. When you pay money into your Super as salary Sacrifice you have to pay a 15% contributions tax regardless of your Marginal rate. This will include amounts you transfer from the UK if you transfer more than six months after becoming a permanent resident. Normally when you work if you Salary Sacrifice for example $10,000 then the second and subsequent rates are increased by the $10,000 so the 19% rate cuts in after $28,001 a saving of 4% the 32.5% rate at $47,001 a saving of 17.5%. Sorry if I am teaching you to suck eggs just trying to keep it simple. Remember you will probably have already received UK Tax relief and when you reach 60 the income produced by this pension will be tax free (under current rules). See the current year tax rates below.

 

This is another reason to consider very carefully before you transfer UK pensions to Oz.

 

 

 

However the tax rates are for

2014/15

 

[TABLE]

[TR]

[TD]$0-$18,200 0%[/TD]

[TD=width: 23][/TD]

[TD=width: 43][/TD]

[/TR]

[TR]

[TD=width: 33]$18,201-$37,000[/TD]

[TD=width: 23]19%[/TD]

[/TR]

[TR]

[TD=width: 33]$37,001-$80,000[/TD]

[TD=width: 23]32.5%[/TD]

[TD=width: 43][/TD]

[/TR]

[TR]

[TD=width: 33]80,001-$180,000[/TD]

[TD=width: 23]37%[/TD]

[TD=width: 43][/TD]

[/TR]

[TR]

[TD=width: 33]$180,0,001 and above[/TD]

[TD=width: 23]47%*[/TD]

[TD=width: 43][/TD]

[/TR]

[/TABLE]

 

 

 

 

 

 

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[/TR]

[TR]

[/TR]

[TR]

[/TR]

[TR]

[TD=width: 43][/TD]

[/TR]

[/TABLE]

Edited by winter1

:confused:

Share this post


Link to post
Share on other sites

Only the growth in the value of the transferred pension benefits is assessable income - not the entire transferred sum.

 

Suggest you might discuss with a tax advisor or specialist pension transfer advisor before you make the decision about whether your receiving super fund or you personally will take the tax charge.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

Share this post


Link to post
Share on other sites

Thanks Alan,

I forgot it was only the increase since moving.

 

A good reason to get proper advice.


:confused:

Share this post


Link to post
Share on other sites
Thanks Alan.. may drop you a PM at some stage shortly to discuss if that's ok ?

 

Is good - email preferred though (click on my name to the left of this post). Thanks!


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×