Tax accountant for expats

[Greg Williams]

Possibly been asked numerous times but I need some recommendations for a tax accountant with knowledge of expat affairs and pensions. The ATO seems to want to take an enormous slice of UK pension payment whilst still working in Australia. Any advice welcome.

[Andrew from Vista Financial]

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

 

[Andrew from Vista Financial]

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

[Greg Williams]

Hi Andrew, thanks for your prompt reply.

I am an Australian citizen now and have been living and working in Adelaide for over nine years.

I received a lump sum and a small monthly pension after I turned 60 (10 years working for the MoD) from the Civil Service pension fund which has been accruing in a UK bank account and none of it has been transferred to Australia.

My eTax calculator claims it wants about 40% of this which I thought is rather hefty. 

Is it worth seeing a tax accountant about this? It's the only complication in an otherwise simple financial position.

Thanks and regards,

Greg

 

[Andrew from Vista Financial]

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

[Greg Williams]

Thanks for your help Andy, much appreciated.

Greg