The Australian Government has amended plans to limit Lifetime Pension contributions into Superannuation Schemes to AUD $500,000, instead it is raising this to AUD $1.6 million.
This new Lifetime cap applies to the size of the Pension Fund rather than contributions, meaning if investment returns push the Fund total to AUD $1.6m, the Member cannot contribute further.
UK transfers to Superannuation Schemes can only commence once the Member reaches age 55. The annual after-tax contribution limit is also reduced from AUD $180,000 to AUD $100,000.
Key points to remember;
- No transfer can be made back into a SIPP or QROPS.
- Australian regulated Financial Advisers need to be appointed to the Scheme Assets.
- In order to manage the stepped transfer, two Schemes would need to run concurrently, most likely increasing costs.
Given the complexities of these developments, detailed tax advice should be considered