If we leave Oz to retire in UK, is there a scheme like QROPS in reverse

[Anushka]

We are already retired and over 60, both have employer pensions and not eligible for Australian state pensions. One of us has a pension income stream from university defined benefit fund, ie not an allocated pension from a lump sum. We are considering moving back to UK in 5 years time. We know in many cases it is possible to transport an UK employers pension to Oz via QROPS scheme. Is there anything similar for people doing it in reverse, ie Oz to UK?

 

We assume we would become non resident in Australia. If the pension money still has to be paid into an Australian bank account, will it be taxed in Australia, and would it be taxed from the first dollar?

 

And if it still has to be paid in Australia, and we want to use it in UK, then we would be subject to currency conversion fluctuations in bringing the money to UK. Does anyone have any advice on optimising the currency conversion process and being in better control of the conversion.

 

Is it best to have sold up everything in Australia before ceasing to qualify as resident in Australia?

 

Thanks for any help and advice.

Edited August 3, 2016 by Anushka

[Marisawright]

Even if it does have to be paid into an Australian bank account, there is no rule that says it has to stay there! You will be taxed on the interest earned ONLY, so if the Aussie bank account isn't interest-bearing, or the money isn't there long enough to earn interest, it's no problem.

 

You will have to declare the pension as income on your British tax return.

 

When you say you're "not eligible for Australian state pensions", does that mean you've got too many assets or that you haven't been in Australia long enough?

[Anushka]

Yes, we have too many assets and too much taxable income to qualify for age pension - we have been in Australia for nearly 30 years.

[Ken]

And if it still has to be paid in Australia, and we want to use it in UK, then we would be subject to currency conversion fluctuations in bringing the money to UK. Does anyone have any advice on optimising the currency conversion process and being in better control of the conversion.

 

 

I haven't looked into the details as it isn't relevant to me but I know the FX company that I used (Halo Financial) has a special scheme for regular transfers. I expect all the FX companies do. You can fix the exchange rate for up to 2 years rather than not knowing from month to month how much you're going to receive.