Consolidate your UK pension into your Australian super fund

Make a difference to your super by taking advantage of UK licensing arrangements that allow you to consolidate your overseas pension savings into a qualifying Australian superannuation fund.

The way in which transfers from UK pension schemes are taxed has changed. This could benefit you if you’re a member of a UK pension scheme and you want to transfer to an Australian super fund.

This strategy works particularly well if you’re one of the tens of thousands of former UK residents who move to Australia each year to live and work.

Taxing times

Tax is normally payable, either in Australia and / or in the UK, when funds are transferred from a UK pension savings scheme into an Australian superannuation fund. In certain circumstances, the tax payable is onerous – 40% of the amount transferred and a 15% ‘unauthorised payment charge’ if more than a quarter of the amount is transferred into a non-qualifying super fund.

There are ways, though, to pay a small amount of tax or none at all, and end up with more money in your Australian super fund. One way is to transfer your pension from the UK within six months of becoming an Australian tax resident. This means you pay no Australian tax on the funds you transfer.

If you transfer your pension after you’ve been an Australian tax resident for more than six months, you’ll pay only a small amount of Australian tax (on the amount your investment in the pension scheme has grown since you left the UK). To benefit from this you need to transfer your UK pension to a qualified recognised overseas pension scheme (QROPS).

What to check

Before you transfer your funds, you should:

  • Check the rules of your UK fund – they will specify whether you can transfer all or part of your pension money from that fund.
  • Get professional financial planning and tax advice about Australian regulations, because your transfer will count towards the new contributions caps that started 1 July 2007, and there could be tax implications depending on your UK balance.
  • Make sure you get advice on the QROPS that’s right for you.

Only a limited number of superannuation funds in Australia are QROPS, and AMP’s Superannuation Savings Trust is one them.

For more information visit the HM Customs and Revenue site and AMP.



To make a difference to your super, contact a financial planner accredited by AMP.
AMP # 1 for super is based on assets under management (Plan for Life March 07 and DEXX&R March 2007). Find out more about why AMP for super.


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Any advice on this page is provided by AMP Superannuation Limited, ABN 31 008 414 104, AFSL No. 233060, RSE Licence No. L0000550.

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