I am approaching age 60 and, as a UK expat living in Australia since 2013, I will begin receiving a lump sum payment and a pension from December 2027.
The pension is a Teacher's UK pension, . I am considering transferring the lump sum to Australia and contributing it to my superannuation fund, followed by intermittent monthly contributions.
I have been advised that I may need to pay tax in Australia when transferring these funds, and I would appreciate clarification on the following:
- Would I be taxed on the lump sum if it were transferred directly into my superannuation fund?
- Would only the growth in the fund since I became an Australian resident in 2013 be taxable, or the full amount?
- Does the transfer qualify under foreign superannuation transfer rules, and does the six-month rule apply?
- How does the Australia–UK Double Taxation Agreement apply to both the lump sum and ongoing pension payments?
- If tax is payable in Australia, would I be eligible for any foreign tax credits for tax paid in the UK?
- Are there any superannuation contribution caps or limits I should be aware of when contributing the lump sum?
- What would be the most tax-effective way to structure both the transfer and ongoing pension income?
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78 views
1 replies