ToowoombaBlue Posted July 10, 2020 Share Posted July 10, 2020 Looking for someone else in the group in a similar situation. Firstly I am an Australian resident, over 55, employed and paying tax to the ATO, I am also registered with the UK Inland Revenue as an non-resident. I have a SIPP in the UK and intend to draw down annually in order to supplement my earnings, something in the region of £12,000 a year. Now I am aware that I wouldn’t need to declare the whole of this drawdown to the ATO on my tax return, but I gather obtaining an Australian financial advisor to carry out the necessary calculations would come at quite a high cost and may render my plan useless. Anyone else gone through this recently? Any advice would be appreciated. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted July 10, 2020 Share Posted July 10, 2020 Hi there Can I ask you firstly if you are a permanent resident/citizen or a temporary resident? Quote Link to comment Share on other sites More sharing options...
ToowoombaBlue Posted July 10, 2020 Author Share Posted July 10, 2020 I am a permanent resident awaiting citizenship Quote Link to comment Share on other sites More sharing options...
ToowoombaBlue Posted July 10, 2020 Author Share Posted July 10, 2020 7 hours ago, Andrew from Vista Financial said: Hi there Can I ask you firstly if you are a permanent resident/citizen or a temporary resident? Same response but with a quote Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted July 14, 2020 Share Posted July 14, 2020 (edited) Hello again Thanks for confirming your residency status. On 10/07/2020 at 10:55, ToowoombaBlue said: Looking for someone else in the group in a similar situation. Firstly I am an Australian resident, over 55, employed and paying tax to the ATO, I am also registered with the UK Inland Revenue as an non-resident. I have a SIPP in the UK and intend to draw down annually in order to supplement my earnings, something in the region of £12,000 a year. Now I am aware that I wouldn’t need to declare the whole of this drawdown to the ATO on my tax return, but I gather obtaining an Australian financial advisor to carry out the necessary calculations would come at quite a high cost and may render my plan useless. Anyone else gone through this recently? Any advice would be appreciated. In relation to the tax to pay on the pension income when in draw-down, the taxing rights are held by the ATO on this due to the DTA. The pension should be paid gross from the UK and declared here and will then be taxed in accordance with your marginal tax rate (MTR). You may (or may not) be able to deduct some of the pension payment using the 'Undeducted Purchase Price, there are a few threads on here that cover this (just do a search in the search box), here is one such post: In relation to engaging an Adviser to assist then this is not a Financial Planners domain but an Accountant, if you have an Accountant here they will probably be able to assist as many Accountants have clients who receive UK pensions (just make sure the UPP is explored). IF you have not already drawn on the SIPP then you could explore a transfer to an Australia Super (QROPS) as there may also be merit in that although you may not be able to access the funds if they are transferred at the same time as you can with the SIPP money (however if the overall tax savings are of significance then there might be other strategies to consider to bridge the cash-flow deficit). Hope this helps. Andy Edited July 14, 2020 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
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