Transferring your pension benefit from a UK Scheme - SuperFacts.com

ANZ Australian Staff Superannuation SchemeTransferring your pension benefit from a UK schemeto the ANZ Australian Staff Superannuation SchemeJUNE 2013The UK rules relating to the transfer of UK pension benefitsto overseas funds state that transfers can generally only bemade to an overseas fund that has been accepted by the UKauthorities as a Qualifying Recognised Overseas PensionsScheme (”QROPS”).The ANZ Australian Staff Superannuation Scheme is aQROPS. The QROPS reference number is QROPS 500626.There are some important things you need to knowabout transferring your UK pension benefit to the ANZAustralian Staff Superannuation Scheme. Please readthis information sheet carefully. The trustee stronglyrecommends that you seek advice from a licensed, orappropriately authorised, financial adviser beforemaking a decision to transfer.Before the trustee can accept the transfer of your UKpension benefit you need to complete and return theform Transferring your pension benefit from a UK schemeto the ANZ Australian Staff Superannuation Schemeavailable by calling 1800 000 086 or through theScheme’s website, www.anzstaffsuper.comThe trustee’s obligations as a QROPSOne of the conditions of being a QROPS is that the trusteemust report details of any payments made out of the ANZAustralian Staff Superannuation Scheme in respect ofmembers who transfer UK pension benefits in certaincircumstances.The trustee must report to the UK authorities, paymentsmade:if less than 10 years has passed since you transferredyour UK benefit; orif 10 years or more has passed since you transferredyour UK benefit and you are a UK resident in the UK taxyear of the payment or have been a UK resident in anyof the previous 5 tax years.The payments that must be reportedPayments from your ANZ Australian Staff SuperannuationScheme membership that must be reported to the UKauthorities include:cash payments made directly to you (as permittedunder Australian superannuation rules)rollovers or transfers to another super fundpayments made to beneficiaries in the eventof your deathcontributions splitting paymentspayments required under Family Law court ordersor agreementspayments of contributions tax on employer or salarysacrifice contributions made in respect of youpayments of insurance premiums (if any) from yoursuper account in the ANZ Australian StaffSuperannuation Scheme.Payments are deemed to come first from the UK benefittransferred until this amount is exhausted. This means thatpayments from any non-UK amounts in your ANZAustralian Staff Superannuation Scheme membership mustbe reported to the UK authorities as if the payment wasmade from your UK benefit. The UK authorities will treatsuch payments as a payment from your UK benefit.Important NoteOn 6 April 2012, the UK authorities introduced new QROPSreporting requirements as follows:the QROPS reporting period, within which a trustee isrequired to report to the UK authorities any paymentsto members, has changed to within 10 years after themember transfers out of a UK scheme. Once the 10years has passed, payments will still need to bereported to the UK authorities if the member is a UKresident in the tax year of the payment or has been aUK resident in any of the previous 5 tax years.Previously, payments had to be reported if the memberwas a UK resident in the tax year of the payment or hadbeen a UK resident in any of the previous 5 tax years.such payments now need to be reported to the UKauthorities within 90 days of the payment being made.Previously, payments were reported annually.www.anzstaffsuper.com

You may have to pay UK taxon paymentsIf payments are made while you are a UK resident (or havebeen in any of the previous 5 UK tax years) a UK tax chargeof up to 55% of the payment may be levied. This UK tax willapply to any payment that would have been“unauthorised” if it had been made from a UK scheme.“Unauthorised payments” are defined in UK laws. Weunderstand that the payments which would be regardedas “unauthorised” include:cash payments made directly to you (as permitted underAustralian superannuation rules) where the amount paidis more than 25% of your UK benefit transferredrollovers or transfers to another super fund that is nota QROPScontributions splitting paymentspayments required under Family Law court ordersor agreementspayments of excess concessional or non-concessionalcontributions tax.Payments of contributions tax or insurance premiumsare not “unauthorised” payments, but they must still bereported to the UK authorities.The UK authorities will notify you should any tax bepayable. Any tax bill will be sent directly to you and itis your responsibility to arrange payment of this tax.When an Australian fund can accepttransfers from UK pension schemesUnder Australian legislation, restrictions apply on whenan Australian super fund can accept amounts transferredfrom UK pension schemes and how much can be accepted.An Australian super fund:cannot accept any part of a transfer from a UK pensionscheme if any of the following apply:– you have not provided your Tax File Number tothe fund– you are age 75 or more when the transfer is received,or– you are age 65 or more when the transfer is receivedand you have not worked at least 40 hours duringany period of 30 consecutive days in the financialyear in which the transfer is received.cannot accept any part of the amount transferred froma UK scheme that exceeds:– $450,000, or– $150,000 if you were aged 65 or more on the 1 Julyimmediately prior to the date the transfer is received.Amounts that cannot be accepted will be returned to theUK scheme from which they were transferred.You may have to pay Australian tax onyour transferAustralian tax may be payable on the amount transferredfrom the UK. The tax rules relating to the transfer of superbenefits from the UK are very complex and the trustee ofthe ANZ Australian Staff Superannuation Scheme stronglyrecommends that you seek advice from a licensed, orappropriately authorised financial adviser, before making adecision to transfer. The description below is only a broadsummary of the Australian tax rules and your financialadviser will be able to take your particular circumstancesinto account.www.anzstaffsuper.com

Transfers within 6 months of youbecoming an Australian residentIf you transfer your UK benefit to an Australian fund within6 months of becoming an Australian resident, generallyno Australian tax will apply provided certain conditionsare met.Australian tax may apply if, for example:the amount transferred exceeds your vested benefitin your UK pension scheme, orthe amount you transferred plus any othernon-concessional contributions made in the yearexceed $450,000 ($150,000 if you are over age 65).How we can helpThe rules regarding the transfer of super benefits fromthe UK are complex. If you have any queries, please callANZ Staff Super on 1800 000 086.The trustee of the ANZ Australian Staff SuperannuationScheme recommends that you seek advice from alicensed or appropriately authorised financial adviserbefore making a decision to transfer.Transfers more than 6 months after youbecame an Australian residentIf you transfer your UK benefit more than 6 months afterbecoming an Australian resident, tax will be payable on thegrowth in your UK benefit since you became an Australianresident – this isn’t new and is in addition to any taxpayable because you exceed the non-concessionalcontributions limit.*If tax is payable on the growth in your UK benefit, and youhave transferred all of your UK benefit to an Australian superfund (including the ANZ Australian Staff SuperannuationScheme), you can elect to have this part of your benefittreated as a taxable contribution in the Australian superfund. This amount will be taxed at 15% in the super fund.(This option may not be available to you if the trustee isrequired to return any excess amount to your UK scheme.)You can also choose to pay this tax yourself by including theamount in your assessable income in your annual tax return– it will then be taxed at your marginal tax rate.If you wish to have the ANZ Australian Staff SuperannuationScheme pay this tax, you must complete a “Choice to haveyour Australian fund pay tax on a foreign super transfer”form available from the ATO at www.ato.gov.au or bycalling the ATO helpline on 13 10 20.* Non-concessional contributions include contributions made fromyour after-tax salary, transfers from overseas super funds, spousecontributions made for you, certain amounts allocated by the trusteeand any concessional contributions over and above the concessionalcontributions limit. Non-concessional contributions are generally notsubject to tax in the fund, however an annual limit of $150,000 currentlyapplies to the amount of any non-concessional contributions that can bemade to super. The non-concessional contributions limit is set at 6 timesthe standard concessional contributions limit for that financial year. Ifyou are under age 65 at any time during a particular financial year, youcan bring forward two financial years of non-concessional contributionsand make total non-concessional contributions of up to $450,000 overa three year period. Non-concessional contributions in excess of therelevant cap will be subject to Australian tax at 46.5%.www.anzstaffsuper.comIssued by ANZ Staff Superannuation (Australia) Pty Limited ABN 92 006 680 664 AFSL 238268as Trustee for the ANZ Australian Staff Superannuation Scheme ABN 83 810 127 567