Lump Sum Investment

[StephanieDavey]

Hi Andrew,

 

My mum moved to Oz in February 2016 on a perm resident visa - she is over 65. She has transferred a lump sum of money to Oz. We are unsure what to do with the money now (its currently just sitting in a standard savings account) - we have been to the bank and an accountant however we are more confused than when we started! We don't believe either of them really understood the tax implications and therefore were unavailable to provide us with the best way in which to manage the money.

 

We have a couple of components we need assistance on:

1. Tax:

Mum three small pensions from the UK - we were advised she will continue to pay tax on these in the UK however, the tax she pays in the UK will be used as an offset for any tax she pays in Oz (the UK tax paid will be entered on to her tax return) - is that correct?

 

2. Savings (Lump Sum):

1. Can Mum set up SMSF?

2. Mum is happy to take small / medium risk in terms of investing the money. She just wants to protect what she has.

 

Are you able to assist?

 

Thanks in advance.

Stephanie.

[Adam from Vista Financial]

Hi Stephanie,

 

I work with Andrew at Vista dealing with Home Loans. Andrew is currently away on holiday but this is something he will definitely be able to assist with.

 

He returns next week and will post a reply to you on his return.

 

Thanks.

 

Adam

[Andrew from Vista Financial]

Hi Andrew,

 

My mum moved to Oz in February 2016 on a perm resident visa - she is over 65. She has transferred a lump sum of money to Oz. We are unsure what to do with the money now (its currently just sitting in a standard savings account) - we have been to the bank and an accountant however we are more confused than when we started! We don't believe either of them really understood the tax implications and therefore were unavailable to provide us with the best way in which to manage the money.

 

We have a couple of components we need assistance on:

1. Tax:

Mum three small pensions from the UK - we were advised she will continue to pay tax on these in the UK however, the tax she pays in the UK will be used as an offset for any tax she pays in Oz (the UK tax paid will be entered on to her tax return) - is that correct?

 

2. Savings (Lump Sum):

1. Can Mum set up SMSF?

2. Mum is happy to take small / medium risk in terms of investing the money. She just wants to protect what she has.

 

Are you able to assist?

 

Thanks in advance.

Stephanie.

 

Hello Stephanie

 

1) Typically this is the way foreign income is considered by the ATO however it may be possible to have the pensions paid gross from the UK therefore only paying the tax in Australia.

 

2) Investing a lump sum......yes we are able to assist with this and can advise on a portfolio to suit your Mum's circumstances.

 

3) As your Mum is over age 65 then she would be unable to contribute to superannuation unless she meets the works test.

 

 

Happy to have a brief chat with you or your Mum over the phone in the first instance if you wish.

 

 

Kind regards

 

Andy

[StephanieDavey]

Thanks Andy for your advice. I will have at chat to mum about it and we will probably give you a call.

 

Thanks Stephanie.