Hi,
I am 59, living in the UK but tax resident in Australia (and UK) since 2015.
I have approx $AUS 30,000 in a UK defined contributions pension from a previous UK employment (5 years ago).
I also have AUD 20,000 in a UK defined contributions pension from my current UK employment.
I am returning to Australia to live in February next year and I intend to create a QROPS compliant fund and transfer my UK pension(s) to this fund.
Could you please help me understand if the transfer will be taxable, based on the following advice:
You have to pay income tax on the applicable fund earnings component of a foreign fund transfer. However, none of your foreign super interest is treated as applicable fund earnings if you transfer it to Australia within six months of:
- becoming a resident of Australia, or
- your foreign employment terminating.
Does this mean that there will be no tax to pay on the transfer of the Pension fund from my current employment if I do so within 6 months of the employment terminating (even though I have been Australian tax resident for over 10 years)?
And what would be the case if I consolidate my other UK Pensions into my current employer pension before transferring?
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