Posts Tagged ‘Australian Pension Transfer’

Global QROPS Ltd Quoted in the Financial Times

Sunday, September 12th, 2010

The leading UK based financial advisers on UK pension transfers to Australia, Global QROPS Ltd, have once again been quoted in the Financial Times.

The article is centred around UK expat pension members and the most popular destinations for both the individual and their pension. Please see link to article below:

http://www.ft.com/cms/s/2/107e36a4-5a06-11df-acdc-00144feab49a.html

UK expat pension members have, since 6th April 2006, the opportunity to transfer their pension to a QROPS (Qualifying Recognised Overseas Pensions Scheme). Before, 6th April 2006, if you were a UK expat pension member, the only opportunity to transfer your pension overseas would be if your overseas employer, in the country you were resident, accepted pension transfers in.

The introduction of the UK’s overseas pension transfer rules, in April 2006, means that a UK expat pension member can transfer out of their UK scheme to a different jurisdiction to the one where they are residing – providing the receiving scheme is a QROPS.

For someone living in Australia, a pension transfer to Australia is possible (as it was before 6th April 2006) but, as outlined by Global QROPS Ltd in the Financial Times article, an individual has to be aware of the local rules of the scheme before transferring their UK pension across. This is no different for someone living in Australia looking at a UK pension transfer to Australia.

The tax free nature of the benefits of an Australian scheme (that is a QROPS) in payment, can not be ignored for UK expats retiring in Australia – but nor can the limit on the amount that can be transferred in to Australia each tax year, as well as the exchange rate and other Australian tax issues that an individual may be unfamiliar with.

Advice from UK experts, such as Global QROPS Ltd, should be sort by those looking at pension transfers overseas.

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Australian Foreign Investment Fund Rules Abolished

Monday, August 9th, 2010

The Australian government has abolished its punitive Foreign Investment Fund (FIF) regime that taxed permanent residents of Australia on the annual growth of certain foreign pension funds (including QROPS). Under the old rules, the annual fund growth was assessable to tax at an individual marginal rate to a maximum of 46.5%.

The Australian treasury originally announced plans to abolish the FIF regime back in May 2009. However, it is only recently that the draft replacement legislation has been published.

It is proposed that the FIF rules will be replaced with an ‘anti-roll-up’ regime, which is targeted at a very narrow type of foreign accumulation fund.

It appears from the draft legislation, that it will be possible for Australian residents to hold funds in certain overseas pension funds, without paying tax on the annual growth.

Income drawn from a foreign pension fund will generally be assessable to Australian tax, whilst income from an Australian Superannuation fund is tax free. Therefore individuals should still look at the possibility of transferring their funds to an Australian Superannuation Plan. Advice on whether a pension transfer to Australia is in client’s best interests may not be as clear cut as under the previous regime and factors such as the exchange rate, visa status and the individuals long term intentions need to be taken into consideration.

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Global QROPS Ltd at the Down Under Live Exhibition

Monday, January 25th, 2010

Global QROPS Ltd, UK independent financial advisers that specialize in providing, financial advice for people migrating to Australia and New Zealand, will be exhibiting at the Down Under Live exhibition on Saturday 30th January and Sunday 31st January in London.
The exhibition is to be held at the Business Design Centre, London. For details of the times and location of the show, please check the attached link:
http://www.downunderlive.co.uk/london_directions.php
Global QROPS Ltd will be available to speak to potential migrants who are looking at all financial concerns relating to their move including major topics such as a pension transfer to Australia (or New Zealand), retaining UK property, UK inheritance tax and investments.
Potential migrants that have not considered the financial aspects of migration should take this opportunity to speak to Global QROPS Ltd to see if their service would be of some benefit to them.
People that may have already enquired or researched aspects such as a pension transfer to Australia or New Zealand and other financial implications in migrating Down Under should also speak to the experts to ensure they are not missing out on any details or tax breaks that their move to Australia or New Zealand could offer.
The Down Under Live exhibition is an excellent opportunity for a potential migrant to speak face to face with firms and companies that assist in a variety of aspects in the migration process.
Global QROPS Ltd looks forward to meeting you there.

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QROPS advice – a UK Pension Transfer to Australia and the Tax Rates

Tuesday, December 22nd, 2009

When migrating from the UK to Australia many individuals, that have accrued UK pension funds, take advice on a UK pension transfer to Australia – to transfer into an Australian QROPS (Qualifying Recognized Overseas Pension Scheme).

The benefits of a transfer to an Australian QROPS, from a UK scheme, is that at age 60 all payments from the Australian QROPS scheme in respect of the transfer, made to the member, are paid fax free.

If you migrate to Australia and do not transfer your pension to an Australian QROPS, then your private or company pension benefits would be paid to you directly from the UK scheme at retirement. Any permanent resident of Australia would be taxed at their highest marginal rate on this income (whether the income is received by them in Australia or not).

These rates, for tax year 2009/2010, are banded as follows:

A$1 to A$6,000               NIL
A$6,001 to A$35,000      15%
A$35,001 to A$80,000    30%
A$80,001 to A$180,000  38%
A$180,000 and over        45%

(The above rates do not include the Medicare Levy of 1.5%)

The tax year in Australia runs from 1 July to 30th June and the above rates would be subject to change on 30th June 2010.

Permanent residents of Australia with UK pension benefits, that are coming up to retirement, should consider a UK pension transfer to Australia – if they have not done so already – as a way of reducing the tax that they have to pay on their income in retirement.

For more information on Australian QROPS, speak to an adviser at Global QROPS Ltd.

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