Lynne Musgrove Posted April 11, 2017 Share Posted April 11, 2017 Hello there, About to turn 60, so I can collect my UK work based pension. Q: do I have to? Q: Will I have to pay tax on it in Australia? Q: If I I do, can I use some to buy Viluntary NI Contributions? Will this save Australian tax? Quote Link to comment Share on other sites More sharing options...
Rossmoyne Posted April 11, 2017 Share Posted April 11, 2017 As I understand it, you don't have to claim it when it is due to you, but if you are going to claim a Centrelink Aged Pension, Centrelink will not talk to you until you have claimed the Brit Pension, and the Centrelink will then make up the difference to a full Australian pension. You will have to declare your British Pension as unearned international income and it will be included in the sum you have earnt during the tax year, and if your income is deemed taxable, you will pay tax on it. I think you have to purchase the voluntary NI contributions before you can claim the British Pension, but things might have changed in the past years so it might be a good idea to check with UK Pensions. Quote Link to comment Share on other sites More sharing options...
MTut Posted April 11, 2017 Share Posted April 11, 2017 (edited) 6 hours ago, Lynne Musgrove said: Hello there, About to turn 60, so I can collect my UK work based pension. Q: do I have to? Q: Will I have to pay tax on it in Australia? Q: If I I do, can I use some to buy Viluntary NI Contributions? Will this save Australian tax? If its a final salary scheme from a previous job, then you don't have to claim it at nominated retirement date. It will escalate in line with scheme rules until you decide to take it. You'd have to pay Aus tax on it as outlined above. You can buy voluntary NI contributions whenenver you want and back date up to six years. Not sure that'd have any implication on the Aus tax. The UK state pension would not escalate from when you do qualify for it which may be a consideration and you should see how this affects your entitlement to an Aus State Pension. If you don't need the income you may wish to see if they'll offer you a transfer lumpsum value instead, which you could then just draw as you wished but you should get proper advice on that option. Edited April 11, 2017 by MTut Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted April 12, 2017 Share Posted April 12, 2017 Hello Lynne. What is your visa status in Australia? Best regards. Quote Link to comment Share on other sites More sharing options...
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