Newly arrived Pensioner filling in first ATO Tax form

[Jan.tt]

Is my UK Teachers Pension subject to tax when when I receive it here in Australia?

 

[rammygirl]

Yes it will be taxed by the ATO. It doesn’t have to arrive in Australia for this to happen just when you actually receive it. If it is also taxed in the UK this will be taken into account with the double taxation agreement.  Either that or you can get a refund from HMRC. 
You can arrange to just be taxed in Australia going forward there is a form to send to the ATO who approve it and send to HMRC who then inform the pension company to stop withholding tax. This as you can imagine takes a while……

The deadline for reruns is the end of this month unless you appoint a tax agent, which is probably a good idea for your first one. 

[Jan.tt]

Thank you for clarifying that.  It was something I read that made me doubt that it was taxable.  I am seeing a volunteer from 'Tax Help' to complete my return.

I sent the form to reclaim tax to the ATO in May and understand from HMRC that I will processed in November.

[Andrew from Vista Financial]

Hi Jan

Are you are a permanent or temporary resident................I assume permanent if you have completed the HMRC form to have tax paid gross as you would have noted that the same rules do not apply to temp residents?

[Jan.tt]

Yes, we are now permanent residents filling in our first ATO tax return.  They are almost completed, but we now that if we can give a UPP (Undeducted Purchase Price) on our UK Teachers' Pension and our UK State Pension we may be entitled to a 8% Offset.  I spoke to someone at the Teachers' Pension call centre who said he was very knowledgeable, but didn't know of UPP's.  I would be very grateful if anyone can tell me how I get this information from UK State Pensions and/or UK Teachers' Pensions and how long it takes?

[Alan Collett]

The default UPP for the UK State Pension is 8%:

https://www.ato.gov.au/misc/downloads/pdf/qc72330.pdf

(scroll down)

Remember that you should have made personal contributions to the Teachers Pension to claim a UPP.

Best regards.

[Bridgeman]

My spouse contacted Teachers Pension and they sent him details of his personal contributions.  He then filled in a form D11 Deductible amount of undeducted purchase price of a foreign pension or annuity (which you can find on the ATO website).  He sent this off to the ATO and they told him how much he could claim as UPP.

[Jan.tt]

Thank you for taking the time to give me all the valuable information.. I have claimed the 8% offset on my State Pension and submitted my return and I have nothing to pay this year.  Next year will probably be different so  I have emailed Teachers Pensions and await their reply, so it is good to know that your spouse was sent details of his contributions and about the ATO form 11.

[Alan Collett]

35 minutes ago, Bridgeman said:

My spouse contacted Teachers Pension and they sent him details of his personal contributions.  He then filled in a form D11 Deductible amount of undeducted purchase price of a foreign pension or annuity (which you can find on the ATO website).  He sent this off to the ATO and they told him how much he could claim as UPP.

He paid personal contributions to a Teachers Pension, out of his after tax salary?

To be distinguished from salary sacrificed contributions made out of pre tax salary?

Best regards.