crazmook Posted September 17, 2023 Share Posted September 17, 2023 G'day, Would anyone happen to know if the NHS pension is subject to the asset test when it comes to reaching state pension age here in Australia? Or it is just the actual payment that you get that will be subject to the income test? Cheers! Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted September 17, 2023 Share Posted September 17, 2023 2 hours ago, crazmook said: G'day, Would anyone happen to know if the NHS pension is subject to the asset test when it comes to reaching state pension age here in Australia? Or it is just the actual payment that you get that will be subject to the income test? Cheers! You can't transfer an NHS pension to a super fund in Australia, so I'm reasonable confident (although I wouldn't bet my house on it) that it isn't classed as an asset and it's only the income stream that's taxable. There are other members who know the ins and outs much better than I do, so hopefully they will comment too. Quote Link to comment Share on other sites More sharing options...
shaunfreo Posted September 17, 2023 Share Posted September 17, 2023 On 16/09/2023 at 06:23, Lara40 said: Hi all. My husband is going for a 482 visa and I’ll be going as his spouse. He is a DR and has a sponsorship. We are hoping to move out to WA next year from the UK and are really excited and grateful to be able to take this opportunity. I am a mental health nurse and wondered if I will be able to find work once out there on the visa as my husbands spouse? Or does Australia just want people on a 189/PR visa? The visa will be under him as the main person but I’ll obviously be moving out with him to and will want to work as a nurse. I would hate not to be able to find work. I love my job and trained and worked in UK as a nurse for years now. I can’t see myself wanting to do anything else. Would it be better for me to try and secure a job before we move? Or should I wait until we see there? Can anyone recommend any mental health nursing job recruitment agencies? Does anyone have any recommendations whether inpatient work or community mental health is better? 14 hours ago, crazmook said: G'day, Would anyone happen to know if the NHS pension is subject to the asset test when it comes to reaching state pension age here in Australia? Or it is just the actual payment that you get that will be subject to the income test? Cheers! You get the lump sum which is taxable in Australia if you are in Australia i think its within 6 months of receiving it, then the annual amount you put on your Australian tax return as foreign income and its taxed here, you wont pay tax twice. It can be paid into an Australian bank account. 1 Quote Link to comment Share on other sites More sharing options...
Parley Posted September 17, 2023 Share Posted September 17, 2023 11 hours ago, InnerVoice said: You can't transfer an NHS pension to a super fund in Australia, so I'm reasonable confident (although I wouldn't bet my house on it) that it isn't classed as an asset and it's only the income stream that's taxable. There are other members who know the ins and outs much better than I do, so hopefully they will comment too. I don't see why they wouldn't count assets in a fund outside Australia as an asset. I would be amazed if they allowed a loophole like that. Superannuation here is counted as an asset once you are over age pension age or have started to draw on it. This might help the OP. https://www.servicesaustralia.gov.au/income-and-assets-from-outside-australia-can-affect-your-age-pension?context=22526 Quote Link to comment Share on other sites More sharing options...
rammygirl Posted September 17, 2023 Share Posted September 17, 2023 The income would be but I don’t think the remaining pension is. It isn’t like super you cannot access it and once you draw it the remaining doesn’t have a value as such. I assume you mean a final salary pension. Might be different for SIPP or other types of pension where the remainder is still available to you on demand. If you need to know then give them a call from the link above. 1 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted September 17, 2023 Share Posted September 17, 2023 38 minutes ago, Parley said: I don't see why they wouldn't count assets in a fund outside Australia as an asset. I would be amazed if they allowed a loophole like that. Superannuation here is counted as an asset once you are over age pension age or have started to draw on it. This might help the OP. https://www.servicesaustralia.gov.au/income-and-assets-from-outside-australia-can-affect-your-age-pension?context=22526 There isn't any loophole. Their NHS pension would fall under the income test, not the assets test. As per your link... Income streams include: defined benefit pensions paid from public sector superannuation schemes Australian super is counted as an asset by Centrelink because essentially it's just a pot of money. You've already paid tax on it, and in most cases you can access it all tax-free when you reach your preservation age. UK pensions are different because they haven't yet been taxed. In most cases you can take a lump sum up to 25% tax-free in the UK, but that money is subject to tax in Australia. Once you've paid tax on it, it would then be deemed an asset. The remainder of the pension (and this is the part I'm not entirely sure on) would be classed as an income stream because the beneficiary receives regular monthly payments, but has no access to the rest of the fund. A further consideration is the lump sum amount that can be taken will vary depending on which NHS scheme the beneficiary is in (1995, 2008 Section or 2015), as explained in the following document. https://www.nhsbsa.nhs.uk/sites/default/files/2023-03/NHSPensions_RetirementGuide_(V26)_202303.pdf Given that the OP is probably also entitled to received the UK state pension - another income stream - it would be worth them getting some professional tax-planning advice. 3 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted September 18, 2023 Share Posted September 18, 2023 4 hours ago, Parley said: I don't see why they wouldn't count assets in a fund outside Australia as an asset. I would be amazed if they allowed a loophole like that. Superannuation here is counted as an asset once you are over age pension age I believe the difference is that we have access to the whole superannuation balance at any time. If you can't withdraw the balance from the NHS pension then it isn't an asset. Same as if you converted your super to an annuity 2 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted September 18, 2023 Share Posted September 18, 2023 Actually I am wrong. They changed the rules for annuities and their value is counted though not 100%. Given that's the case I wonder if the NHS pension balance would be assessable too? Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted September 18, 2023 Share Posted September 18, 2023 So as the NHS Pension is a Defined Benefit Scheme the Pension Income is tested against the Income Test and the Assets Test does not apply. https://www.servicesaustralia.gov.au/income-streams?context=22526 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.