QROPS in Australia are tax-efficient pensions in a favourite overseas destination for British expats who have moved Down Under to start a new life and left their pensions in the UK.
Australia is not only an expat stronghold, but close political and cultural ties going back more than 200 years mean many Australians who have worked in Britain also find QROPS an attractive option for transferring their UK pension home.
Despite Australia QROPS struggling to meet new rules introduced under Britain’s pension freedom legislation in April 2015, new schemes are opening and Australians can also move their pensions to QROPS based in international financial centres.
- Australia has an unbroken history of providing a strong government and stable economy
- Australia is a member of The Commonwealth and has inherited a legal and cultural background closely aligned to that of Britain
- Australia is an important member of the G20 group of developed nations and of the Organisation of Economic Cooperation and Development (OECD)
- Over the years, Australia has worked on building strong relationships with other leading world governments and has a transparent tax system with a network of double tax agreements and tax information exchange treaties with many partners
- Unsurprisingly, English is the main language
QROPS are regulated by The Australian Prudential Regulation Authority (APRA)
Australia QROPS are based on HM Revenue & Customs (HMRC) guidelines with compliance and monitoring from the UK.
55+ Australia QROPS
Promoted as a method of reintroducing QROPS to Australia, the 55+ plans limit the age of retirement savers joining the scheme to 55 years old or over. This way, they avoid the problems of superannuation schemes making hardship or compassionate pension payments to younger savers – the factor that stops them beating the pension age test.
Some 55+ QROPS have already joined the HMRC QROPS List, but this listing does not come with HMRC approval that the scheme is a QROPS, merely confirmation that the provider certifies that their pension meets QROPS rules.
Third party QROPS
Besides basing a QROPS in Australia, expats and returning Australian workers who have pension rights in the UK can transfer their retirement savings to a ‘third party’ financial centre, such as Malta.
Centres like Malta offer the financial reassurance of European Union regulation and stability and the benefits of investment and tax opportunities.
Like Malta, other third party centres such as Gibraltar and the Isle Of Man are English speaking and have legal and tax systems that follow the British model.
Third party QROPS investors are not restricted to living in the same place as their pension is based – they can move between countries and leave the pension parked in a safe and reliable jurisdiction.
Remember that no QROPS is suitable for all circumstances. We remove the hassle, trouble and time in finding the best QROPS solution for your circumstances, and provide you with straightforward, independent advice and solutions so you can make empowered decisions.
Some of the key points when looking to transfer your UK pension while resident in Austtralia:
Find out more
If you are considering a QROPS and want to know if Australia is the right financial jurisdiction for you, and discuss other options such as Third Party QROPS, contact us today.