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Military Pensions


jimroo2

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Hi all you helpful people, My parner and i both have British military pensions. Can someone please advise us on what we should do with them if we are successful with our immi application. They are taxed at source in the UK, but would we have to pay more tax if we where to bring them into the OZ banking system. We are assuming that we will have to declare these pensions as income to the OZ tax people. Or do we leave them in a UK bank account and draw from them using ATM in Oz. Anyone out there ex UK Forces that have made the move? All advice greatly appreciated. JimRoo2.

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Guest Jo & Clem

Hi Jimroo2,

 

I'm in the same boat, 22 years Royal Engineers. Wife and I are off to SA middle of March, going to a free pension seminar when I get there, if anything comes out of it I will pass on any details

 

Clem

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Guest Squidget
Hi all you helpful people, My parner and i both have British military pensions. Can someone please advise us on what we should do with them if we are successful with our immi application. They are taxed at source in the UK, but would we have to pay more tax if we where to bring them into the OZ banking system. We are assuming that we will have to declare these pensions as income to the OZ tax people. Or do we leave them in a UK bank account and draw from them using ATM in Oz. Anyone out there ex UK Forces that have made the move? All advice greatly appreciated. JimRoo2.

 

Hi

My hubby is ex Navy and has a pension too.

There is a Double Taxation Agreement in force between Aus and UK which means that you only have to pay tax in one country - in this case Aus. From memory, you will need to get a form from the Inland Revenue which, once you are over here, will then need to be certified by the ATO that you are tax resident in Aus. You then send it back to the IR who make a decision on whether to grant exemption from UK tax.It would probably be worth contacting the IR Centre for Non-Residents to get the relevant form.

 

If you are granted exemption, then your pension will be paid gross in the UK. You will have to declare it in your Aussie tax return and pay tax on it. In Aus, it's counted as being investment income so you have to pay quarterly advance tax instalments on it which saves you having a big bill at the end of the tax year.

 

There is the option now with forces pensions of having them converted every month and transferred direct to your Aus bank account. We prefer not to do that as we like to keep money in the UK for family presents etc. We just transfer it as and when we need it using Ozforex. It only costs £7 a transfer.

 

Hope that helps.

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