Andrew from Vista Financial

Hi there Typically a lump sum payment from a foreign super fund (includes UK Pensions) is assessed for tax on the Applicable Fund Earnings (essentially growth element) between date of arrival and receipt of lump sum. The above does not apply if the lump sum is received within six months of residency or if the individual is not a permanent resident or citizen of Australia. See also: https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/withdraw-a-lump-sum-directly-from-a-foreign-super-fund Hope this helps. Andy

Hi there There are a number of ways a person can access money from superannuation including lump sum withdrawals and moving to Account based Pension Pensions, each may have differing Australian tax implications depending on the individual circumstances. However in relation to how the UK may view these you would actually need to take UK tax advice which I am not authorised to provide I'm afraid. Do you have an Accountant in the UK? This could be a starting point. Also there have been a few threads on this topic in the on the PomsinOZ site (returning to the UK sub forum), here is the latest one: Superannuation, moving back to UK - Money and Finance - Moving to Australia - Pomsinoz Forum ATB Andy

Superannuation can be used to start an account based pension once a person retires (or meets another condition of release). This allows income to be received as a series of regular payments (usually monthly, quarterly, half yearly, or yearly). If over preservation age but still working, the person may not have full access to superannuation but may be able to start an account based pension under the Transition to Retirement (TTR) rules. A TTR pension may also be referred to as a Transition to Retirement Income Stream, or TRIS. Once a person reaches 65, or informs their super fund that they have met a condition of release before turning 65, their TTR pension becomes a ‘TTR pension in retirement’. This means their pension is subject to the same conditions that apply to an account based pension. Income Payments The person can select how much income to receive each financial year. This allows flexibility to meet individual needs. The only rules for how much pension must be taken are: · An income payment must be made at least once each financial year. · A minimum level of income must be paid each year based on a percentage of the account balance at commencement and each 1 July. If the income stream commences part-way through a financial year, or is commuted before the end of a financial year, the minimum income payment is pro-rated for that year. Age Income Factor(2019/20 & 2020/21) Under 65 2% For a TTR pension, the maximum income is 10% of the account balance and no lump sum withdrawals can be made. The pension will cease when the account balance reduces to nil or the person requests the money be rolled back to accumulation phase or another pension account. The pension can be commuted (stopped) at any time with the money rolled back to accumulation. Withdrawals cannot be made in cash unless a condition of release has been met. Taxation of Income from a TTR Pension Every withdrawal (income or lump sum or death benefit) from a pension is split into taxable and tax-free components in the same ratio that applied when the pension commenced. The tax on each component depends on the person’s age as shown in the table below. Component Taxation Treatment Any age Tax-free No tax 60 or older Taxable – taxed element No tax Taxable – untaxed element Marginal tax rate*, less 10% offset Under age 60 Taxable – taxed element Marginal tax rate*, less 15% tax offset Taxable – untaxed element Marginal tax rate* * Plus Medicare Levy Earnings added to a pension account are taxed at the same rate as applies to the accumulation phase of superannuation.

Hello Assuming when in Australia you are permanent residents (as opposed to temporary) then the typical tax treatment here is pretty much no different to owning an investment property here, broadly income less allowable expenses are taxable at applicable marginal tax rates. Tax may be payable in the UK however in most cases the UK tax free allowance mean none is due, if UK tax is payable then typically that can be offset against tax due in Australia. This should also assist: https://www.ato.gov.au/Individuals/International-tax-for-individuals/Investing-overseas/Rental-income-from-overseas-property/ Regards Andy

Hi Adrian Thanks for reaching out. We may be able to advise you on this, are you able to message me on here with your email or alternatively email me directly to andrew@vistafs.com.au Thanks Adrian

Hello Just an update about a new Retail Super Fund hoping to have QROPS status by mid February. I cannot give specifics at this time but the company are a well established Australian Superannuation company (they have a UK parent company) and they have their new 55+ Super Fund application currently with APRA, once this is signed off they will apply to HMRC for a QROPS certificate (they have already had HMRC look at the Deed and HMRC seem happy with it). So whilst the only current avenue for a QROPS transfer is again the SMSF path for those in the midst of looking at transferring it may pay to hold fire. Regards Andy

At Vista we have been working very closely with a number of Super and Pension (UK) companies of late to forge partnerships/relationships so that we are able to offer our new and existing clients access to a wider range of solutions and with providers that are highly rated and awarded in their field. On the back of this we believe that we are now in an even stronger position to cater for an individual/couples retirement planning needs (particularly UK expats). Our solutions cover all aspects of retirement planning and wealth creation and include advising on and access to: Industry Super Funds; Not Profit Super Funds; Retail Super Funds and Wrap Platforms; A UK International SIPP (UK Pension) allowing British Pound and Australian Dollar investment options; Self-Managed Super Funds (including QROPS); Guaranteed Annuities (short and long term including lifetime annuities); Access to a very wide range of unlisted managed funds; Access to the ASX M-Funds service; Access to a wide range of listed managed fund/ETFs; Access to Direct Equities and Listed Investment Companies. We charge on a fee only basis for these solutions and our fees are fair and transparent and disclosed upfront. We also use clean investments/funds meaning that there are no commissions charged on them and we ensure that we look for the most cost effective solutions available for our clients needs. Feel able to contact me if you would like to discuss our services in more detail. Regards Andy

Hello all The Seminar has been booked for 8 December at the Hallett Cove Civic Centre and starts at 10.30am. We have 15 confirmed seats booked so have about 5 places left. So, if anyone would like to attend please PM or email (first come first served). Thanks folks. Andy

Hello I know that this forum is not used very actively nowadays but people do still LK on here. We are thinking of putting on a First Home Buyers (Mortgage) Seminar as I know that there are still plenty of Poms coming to Adelaide and will of course be looking to buy their first home here at some point. We used to run these seminars regularly a few years ago and the feedback was very good. I am just trying to get some ideas on numbers and then if take up is good I will lock in a date, the venue is likely to be the Hallett Cove Civic Centre. It will be free to attend, no pressure purely informative and will provide information on the following: The buying process in SA; Costs involved in buying; The mortgage process in SA We have years of experience assisting in obtaining mortgages for first home buyers specifically Poms in this area so do feel that there could be value here for members wanting to understand how it all works. If you are interested then please either PM via here, reply to this thread or email me on Andrew@vistafs.com.au Cheers Andy

Sorry foe the delay Greg. An Aussie Accountant should be able to cope with how the foreign pension income is treated however the lump sum that you received is an entirely different calculation and one that I'm afraid to say most Accountants do not understand. It's actually treated under the foreign super benefit payment rules, the ATO may be able to assist you with this one directly if you apply for a private ruling. Regards Andy

P.S here's a thread on the UPP: https://www.pomsinoz.com/topic/190276-upp-on-uk-private-pensions/

Hi Greg If you are a permanent resident or Citizen then your pension will have to be declared here as income and taxed at your marginal tax rate (MTR). One thing that may be able to mitigate this slightly is a deduction as follows: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Other-deductions/Undeducted-Purchase-Price-of-a-foreign-pension-or-annuity/ You can work with the ATO to get the deduction confirmed if applicable and then just use those figures for the return. You are getting it paid gross from the UK I assume? Andy

I would encourage anyone with a private UK Defined Benefit Pension Scheme (sometimes referred to as a final salary pension) to obtain a transfer value. Values have been increasing steadily over the years and it is believed that they have now perhaps peaked. We are seeing values on average standing around 25x the current annual pension benefits. This means that if you have a UK pension and the current benefit gives you a yearly pension of £10,000 the transfer value could be £250,000. So if you are a deferred member of a Defined Benefit (final salary) UK Pension Scheme and live in Australia we strongly believe that you should be proactive in this area and we (Vista Financial Services) can request the relevant transfer values and information for you. We can then if required provide advice around whether these benefits are best placed where they are OR whether they are going to work better for you in retirement elsewhere we can then if appropriate carry out a transfer for you. Our solutions include being able to transfer to an Australian Super Fund (QROPS) where applicable which is a solution only open to people above age 55 currently (due to HMRC legislation). We are also able to provide advice on transferring into an International SIPP (perhaps as an interim measure if under age 55 until it can be transferred to an Australia Super Fund) where the money can be appropriately invested as advised by us into UK and Australian currency dominated investments (I will expand more on this solution in another post). Please note that government pensions such a NHS and Police Pension cannot be transferred neither can the UK State Pension.

Hello Hoopster I'm assuming that you are a Permanent Resident/Citizen here in Australia. My following comments relate to PRs/Citizens. UK tax free doesn't mean Australian tax free and thus foreign investments and savings are typically assessed by the ATO on the same basis as Australian investments and savings. Therefore interest earned from savings should be declared each year in the tax return. Investments are treated in that: > Income again should be declared each year in the tax return ie dividends and/or distributions from Unit Trusts/OEICS. > Capital Gains should be declared in the tax return in the year that they are realised (with any relevant exemptions that are applicable applied). Hope this helps. Regards Andy

I would like to take the opportunity to formally introduce our new Mortgage Broker, @Carol from Vista Financial Carol is an open, honest and personable professional who takes the time to listen, understand and explain things to you in simple terms. Carol is fiercely and passionately dedicated to her clients and believes the only kind of true Customer Service is exceptional Customer Service and she hopes that one day this will become the norm, not the exception. She has come from a private banking background and brings a variety of knowledge with her. Vista Financial Services are delighted to welcome Carol on board and likewise Carol is excited at the opportunity to be able to offer a wider range of solutions as a Finance/Mortgage Broker. If anyone would like refreshingly honest and down to earth advice and assistance with your first/next purchase, please contact Carol today on carol@vistafs.com.au or +61 8 8381 7177. You can also learn more about Carol by adding her on LinkedIn and more information will be available on our website soon.