Author: KaraATO(Community Support)Community Support 13 Mar 2026
Hi @ASC109,
Your understanding is mostly correct, but there are a few key points to clarify about how your UK pension withdrawal will be taxed in Australia.
If you withdraw your UK pension as a lump sum and bring it to Australia:
- You'll pay tax here on the 'applicable fund earnings'.
- These are the earnings that grew on your UK pension while you were an Australian resident.
- It's not just the growth from when you became a resident – it's specifically the earnings portion.
You may be able to avoid tax on the lump sum if you receive it within 6 months after you became an Australian resident or after you stopped working in the UK. If you're outside this 6-month window, you'll need to declare the applicable fund earnings in your tax return.
If you transfer all of your UK pension into an Australian super fund instead, you might not need to show the earnings in your personal tax return. This works if:
- All of your lump sum goes into an Australian super fund.
- You no longer have any interest in the UK fund after the transfer, and
- You make a written choice to have all the earnings taxed in your Australian super fund instead.
The growth amount is generally taxed at 15% when it goes into your Australian super fund, similar to before-tax contributions. Your age and preservation age can also affect how this works.
The double tax treaty may help you get a refund of UK tax, but this doesn't change your Australian tax obligations. You'll still need to declare the applicable fund earnings here.
Because your situation involves both UK tax rules and Australian super rules it's best to speak with our tailored technical assistance team for further help.
Author: MMTAT26(Initiate)Initiate 3 Apr 2026
If you apply for a tax refund from the UK using the HMRC DT Australia form you must first send it to the ATO at Albury NSW together with an ATO form NAT 75441. They will certify the HMRC form and return it to you by mail. You must then submit the HMRC form with supporting documents to the HMRC. The tax refund should then occur. I am now waiting on the ATO to certify my HMRC form. Their website says it can take up to 50 days. I hope all goes well for you and me
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