Concerns as to whether superannuation could be deemed too attractive for high net worth individuals saw the Australian government introduce a ceiling on the amount that can be contributed to Superannuation each year. The contribution cap includes amounts being transferred from UK pension funds.
If you have UK pension funds in excess of £60,000 or are under 65, with funds in excess of £180,000 the contribution cap could affect you.
Any amount of your UK transfer that exceeds the cap will be taxed at the top marginal rate plus medicare (46.5%).
UK migrants with large pension funds in the UK will have to stagger their transfers over several tax years should they wish to transfer their benefits to Australia. This will be extremely difficult to organise once in Australia, particularly where the funds are held within a defined benefit scheme (this is where the vast majority of larger funds are held) because those schemes will not generally permit partial transfers. Montfort International however can organise such transfers by taking advantage of other UK options, for which UK authorisation would be required.
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