Self Funded Retirees

[Guest Marybeth52]

Just wanted to let any self funded retirees who are coming to Australia know about  one or two changes that may impact on their finances. Having retired from work I had hoped to live on our UK pensions- however we are still liable for Australian tax on these amounts. This is because in order to qualify for the Seniors and Pensioners Tax offset allowance -you have to be resident in Australia for a minimum of 10 years, and as we have not yet satisfied that criteria we will continue to pay tax on our pensions. Currently the UK Pound/AUS dollar  money exchange rate means that our pension payment amounts have decreased by about a third in the last couple of years.

Of course the recent changes to the aged pension age have been compounded by the latest change in the residence period to qualify for an Australian age pension- you must have been resident in Australia for 15 years.

We receive no money from the Australian government at all.  I am not sure if we can still afford to stay here in retirement.

[Mike@Bonbeach]

Marybeth52.

We have just applied for the Aged Pension (July 2017) and there was no mention of a change in the residence qualification of 10 years. Is this a new ruling to take affect in the future?

Mike

[NickyNook]

The 15 years residency requirement is a new one from July 2018.  It applies to people who migrate here and work for less than 5 years.  

To the OP: You still get the usual tax-free allowance that applies to everyone. So between you and your husband you will get at least $36,400 of your joint annual income tax-free.