6 Month Window

Under Australian tax legislation, Section 305/10 (formerly known as 27CAA), should any transferring UK pension funds be received, by an Australian scheme, after 6 months of the member’s arrival in Australia, then tax is due on the increase of the transfer value in the time between the member’s arrival in Australia and the arrival of the UK pension funds.

The individual can pay this tax directly, at their highest marginal rate of tax. In some cases, it is possible for the member to elect for the scheme to pay the tax from the transferred funds, however, an individual should seek specialist advice before electing for the scheme to do this as an HMR&C unauthorised payment charge could be generated.

For members in certain visa categories, this tax may not apply.

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