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Guest Gary Lucas

UK Military Pension Taxation

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    Guest Gary Lucas

    Don't know if there are any other Uk military 'types' currently in the same position as me (i.e. looking to bail out and head down to Oz), or even any ex military now living in Oz, who may have got further than me in getting an answer to this - if you've qualified for your military pension......

    a). Will your lump sum get taxed when you take it across to Oz? and,

    b). Do you get a 'double-whammy' tax on your monthly payments (i.e. taxed in UK & Oz) and then have to claim it back in your annual Oz tax return?

     

    I have looked on the Oz Income Tax website, and while I think the answer to (b) is that you can claim it back, I haven't a clue as to the answer to (a), and neither did the Oz Tax Office official I spoke to on the phone a few weeks back! Any info would be much appreciated![/i]

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    Moneycorp

    Moneycorp

    Hi mate, emailed your q's off to an accountant mate of mine in Sydney (see below for answer). This might help a bit, but if you want very clear advice it's probably advisable to ask a tax specialist, as the Aus tax system is a bit complicated when it comes to foreign income etc.

     

    ------

     

    Hey Mark

     

    No worries ... but can't give you complete answers either as it is a very complicated area.

     

    Generally a lump sum that has been taxed in the UK will not even be mentioned in an Aus tax return. I have not had a huge amount of experience in this area but usually if the lump sum is paid and he moves O/S then it has nothing to do with the new country.

     

    Payments from the UK while he is in Aus will usually be taxable as foreign income with a credit for any tax paid in the UK. This ensures that he is paying tax at our rates. Example, if you pay tax at 30% in the UK and in Aus, then the tax assessed in Aus will be fully offset by the tax already paid in the UK. If the Aus tax rates are higher you will most likely have to pay a bit more. However if you have paid more in the UK this will generally not be refunded in Aus.

     

    As I said there are all sorts of exceptions with this sort of thing and I am far from an expert in foreign income but the above is a pretty good indication of what to expect.

     

    cheers, Nick

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    Guest Gary Lucas

    Mark,

     

    Many thanks for your help on this (and thanks to your mate Nick too!), judging by the amount of times your name appears on this site helping people like me out, I reckon you should put a claim in to the Oz High Commission, to be paid as one of their busiest advisors on emigration matters!

    Any chance that the way the current test series is going is all part of a sadistic Aussie plan, i.e. get us all excited and then nick it away at the very end (Shane Warne for a 10 wicket haul?)?!!

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    Mark,

     

    Many thanks for your help on this (and thanks to your mate Nick too!), judging by the amount of times your name appears on this site helping people like me out, I reckon you should put a claim in to the Oz High Commission, to be paid as one of their busiest advisors on emigration matters!

     

    lol. It's all in a days service.

     

    Any chance that the way the current test series is going is all part of a sadistic Aussie plan, i.e. get us all excited and then nick it away at the very end (Shane Warne for a 10 wicket haul?)?!!

     

    Mate, we live in hope! Well I do anyway. lol

     

    It really has provided for a great ending. Best Ashes series I've ever seen, even if you guys have been cheating with substitute fielders and tea breaks every 10 mins :wink: :lol: Opps, now I'm starting to sound like a whinging aussie :shock:

     

    Lucky for me, I'm on holidays at the moment, so I get to see the whole next game, much to the dislike of the missus.

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    Guest Cookie

    Gary,

    we seem to be in the same position as you, ( naval family going over to Oz in March) regarding a pension. We have been told that once you have changed your lump sum into Oz $ you will not be taxed. We are with HIFX and intend to send over pension every 3 months as it costs around £10 - £20 each time they do it.

    Regards Cookie

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    Guest Gary Lucas

    Cookie,

     

    Thanks for your info on the lump sum business and what you mention about the monthly payments makes a lot of sense too. Evelin (my wife) say's that she told me a few months ago that we should get the pension sent over every few months, but I can't remember it....too much stuff whizzing around my head at the moment!!

     

    Our situation is that I had a firm offer of employment from Qantas (great relocation package, etc etc) got all the visa's done (4 Year temporary with Quantas up for supporting me for Permanent Residency within a year of arrival) and within a week of getting the visa's, being told that Qantas have to cut 15% workforce in the next 12 months! If, after they've identified the positions they want to lose, they still need my trade, then they'll let me know....what a position to be stuck in, don't know whether we are coming or going - literally!

     

    Everyone's got a story to tell when it comes to this emigration lark!!

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    Guest Cookie

    Hello Gary,

    Your right there, everyone does have a tail to tell. We have had our agent sacked (they didnt even bother to tell us untill we enquired) missing letters, unanswered emails, cancelled cheques, lost cheques. etc...We will be glad when the bleeding thing arrives on the door step. Nice little xmas pressie - we hope!!

    Regards

    Cookie

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    Guest basiltherat

    Cookie

     

    Can you divulge the agent you sacked. We are currently undergoing initial details with an agent. Already disregarded one. Would prefer not to make another mistake this early on.

     

    Thanks for the information on Military pension (Ex Navy myself). When we first thought about immigration I contacted Paymaster direct. They mentioned something about leaving pension in UK bank.

     

    Steve

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