UK Pension Transfers to Australia
Following last month’s u-turn by the Australian government regarding superannuation funds, temporary visa holders are again looking at transferring their pension funds to Australia.
Previously, the Australian government had proposed that temporary visa holder’s superannuation funds be held by the Australian Tax Office until the granting of a permanent visa. As a result, Montfort International had advised temporary visa holders that they should suspend their UK pension transfers to Australia until the consultation process had completed.
The consultation process has resulted in a new approach allowing for funds to remain invested in superannuation while the person is resident in Australia. As such, we are now advising temporary residents to reassess whether their UK Pension entitlements should be transferred to Australia.
In addition to uncertainty over the government’s proposals many migrants have deferred transferring their benefits to Australia due to the strength of the Australian Dollar.
Montfort International can assist clients who are concerned about exchange rate fluctuations by first transferring their pension into an arrangement which has its own bank account. This could be used to convert your investment to Australian Dollars when you are happy with the exchange rate. Any onward transfer to Australia would then be in Australian Dollars. As we have seen in the past week with the pound regaining some ground against the dollar, the exchange rate can move quickly, and this strategy ensures you would not be adversely affected by any exchange rate fluctuations at the date of transfer.
If you wish to find out more about UK Pension transfers to Australia please contact Montfort International - info@miplc.co.uk.
Previously, the Australian government had proposed that temporary visa holder’s superannuation funds be held by the Australian Tax Office until the granting of a permanent visa. As a result, Montfort International had advised temporary visa holders that they should suspend their UK pension transfers to Australia until the consultation process had completed.
The consultation process has resulted in a new approach allowing for funds to remain invested in superannuation while the person is resident in Australia. As such, we are now advising temporary residents to reassess whether their UK Pension entitlements should be transferred to Australia.
In addition to uncertainty over the government’s proposals many migrants have deferred transferring their benefits to Australia due to the strength of the Australian Dollar.
Montfort International can assist clients who are concerned about exchange rate fluctuations by first transferring their pension into an arrangement which has its own bank account. This could be used to convert your investment to Australian Dollars when you are happy with the exchange rate. Any onward transfer to Australia would then be in Australian Dollars. As we have seen in the past week with the pound regaining some ground against the dollar, the exchange rate can move quickly, and this strategy ensures you would not be adversely affected by any exchange rate fluctuations at the date of transfer.
If you wish to find out more about UK Pension transfers to Australia please contact Montfort International - info@miplc.co.uk.
Labels: Pensions in Australia
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