9 Things Expats Need to Know About Australian Superannuation
What makes superannuation so super?
For expats wanting to save for retirement or looking for ways to reduce the tax burden on their savings, an Australian superannuation scheme can be attractive. If you are considering contributing to an Australian superannuation scheme, such as an SMSF, or transferring your UK pension funds to a QROPS SMSF, there are nine things that you need to know about.
What Taxes are Levied on a QROPS Transfer?
QROPS Transfer to Australia and New Zealand were once tax free
There was once a time when transferring a UK pension to an Australian or New Zealand QROPS would not be taxed. However, all that changed when the UK government brought in the OTC, or the Overseas Transfer Charge, which is essentially a tax on QROPS transfers in certain circumstances. If applicable, the OTC is charged at 25% of the transfer value of the funds being transferred into the QROPS. This could apply whether the transfer to a QROPS is from a UK Defined Benefit or Defined Contribution scheme.
How an Overseas Transfer Charge Affects a QROPS Transfer
If you are thinking about transferring your pension funds into a QROPS you must remember that it may be subject to an Overseas Transfer Charge (OTS). The amount of money being transferred is an important factor in assessing whether a QROPS transfer is the best option for you. Will a QROPS transfer still be viable if it is subject to an OTS?Read more
Managing your pension funds before transferring to a QROPS?
Plan your pension early.
When it comes to pensions transfers, a QROPS (Qualifying Overseas Pension Scheme) is sometimes the perfect option., However, this option is only available in the right circumstances. If you are looking to transfer your UK pensions to Australia (for example), you are not allowed to transfer pension funds into a QROPS in Australia until you reach the age of 55.
In circumstances where your UK pension funds are remRead more
How much do I need to transfer into QROPS SMSF?
Considering a QROPS SMSF?
If you are considering putting your money into a Qualifying Recognised Overseas Pension Scheme (QROPS) such as a Self-Managed Super Fund (SMSF), it is important to understand how much to transfer to gain the most benefit. This article examines what a QROPS SMSF is, what the benefits of such a scheme are, and how much you should be transferring.Read more