Australian Tax Issues

For people migrating to Australia, Global QROPS has a team of experts that can assist with tax issues that a migrant (or returning national) could potential face with their UK assets.

Foreign Investment Fund Tax

Australia has a tax known as the Foreign Investment Fund (FIF) taxation.

The FIF rules tax Australian residents, who have overseas investments, on the growth of these investments on an annual ongoing basis. The tax is paid by the individual, directly from their own pocket, at their highest marginal rate of tax.

Some assets that individuals hold offshore from Australia are not subject to FIF and, in some cases, the value of migrant’s combined household assets may fall below the threshold where FIF applies.

Capital Gains Tax

Australia has capital gains tax (CGT). Should you sell or dispose of an asset, held offshore from Australia, whilst you are an Australian resident – the Australian CGT rules and tax rates could apply.

Inheritance Tax

Australia does not have inheritance tax (IHT). However, this does not mean that moving to Australia automatically exempts you and your estate from IHT in your country of origin. The UK, for example, could still deem you to be a UK domicile after you have migrated, if you do not take the correct steps, and therefore potentially subject to IHT on death.

Income Tax

Australia applies income tax to overseas income, regardless of whether the Australian resident receives this in Australia. This is taxed at the individual’s highest marginal rate.

Tax on Australian Superannuation Schemes

Although on retirement, at age 60, in Australia you are able to receive your benefits tax free from your Australia Superannuation Scheme, your funds within the scheme are subject to tax on growth. This is paid for by the scheme.

Australian Visa

Depending on the type of visa that you enter Australia on, you could have an exemption to tax on your overseas assets and income. You will need to speak to a Global QROPS adviser to establish whether this applies to you.