TonyM Posted November 8, 2016 Share Posted November 8, 2016 My wife has the option to take a lump sum tax free payment and part pension from the UK. She hits 60 in February and we need to know if the sum is taxable. We realise the pension will not be but can we just deposit the lump sum into our account of not declare it please. There seems no point in depositing it into her super as she can withdraw that any way in February. Link to comment Share on other sites More sharing options...
scuffythetugboat Posted November 9, 2016 Share Posted November 9, 2016 Assuming that your wife is an Australian resident for tax purposes she must declare all income from anywhere in this world whether it has been taxed at source or not. By not declaring any income you run a risk of getting into serious strife with the ATO which can result in heavy penalties. Look it up on the net or ask an accountant before you decide what you want to do. Depending on each persons circumstances the tax (if any) bill may not be as bad as you think. Personally, I like to sleep at night Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 14, 2016 Share Posted November 14, 2016 My wife has the option to take a lump sum tax free payment and part pension from the UK. She hits 60 in February and we need to know if the sum is taxable. We realise the pension will not be but can we just deposit the lump sum into our account of not declare it please. There seems no point in depositing it into her super as she can withdraw that any way in February. Hello Tony Typically a pension will be assessable in Australia on both the lump sum and income. The income is generally assessed as foreign income however the lump sum is considered slightly differently and this is along the lines of the growth in value since becoming Australian resident (if when taking the lump sum the remaining pot provides a lifetime income stream) this is regardless of whether it is brought into Australia or not. If the pension was transferred to Australia (which is an option you ought to consider) as a foreign super transfer (an option for people over age 55 with certain pensions) then income and lump sums withdrawn from superannuation is tax free for people over age 60. Happy to discuss foreign super transfers further if required. Regards Andy Link to comment Share on other sites More sharing options...
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