Taxation in Australia

[JJR]

Once I move to Australia, do I have to move my pension, annuities and investments to Australia and will I be liable to pay tax in Australia or can I choose to continue to have my pension paid to a South African bank account  and continue to be taxed in South Africa even if I am permanently living in Australia?  Also can anyone tell me how the tax in Australia compare to what is paid in South Africa?

[Kumbie]

I'm not a tax expert but I heard that you 1.) Have to make a formal application to SARB and SARS to inform them of your decision to permanently move to Australia. This will allow the two institution to flag you as a non SA resident for tax purposes. 2) Once you get both approvals, you then tell your service provider to liquidate your investments and send the money to Aussie. Here I understand you will be charged a tax (not 100% sure how much but it will be lower than what you would be charged if you withdrew the assets as a residence). Your net proceeds is what will be transferred to Aussie. 

 

As for tax in Aussie vs. SA, my high level research shows that tax is effectively lower in Aussie. Sorry can't give you more accurate info

[Hugo2]

On 6/27/2017 at 4:56 PM, JJR said:

Once I move to Australia, do I have to move my pension, annuities and investments to Australia and will I be liable to pay tax in Australia or can I choose to continue to have my pension paid to a South African bank account  and continue to be taxed in South Africa even if I am permanently living in Australia?  Also can anyone tell me how the tax in Australia compare to what is paid in South Africa?

 

Pension and Living Annuity paying monthly or annual payments (ie you have already commuted or retired) can not be moved to Oz. You can transfer the pension or annuity to  Oz as and when recieved, NO formal emigration required (Kumbie above thus not correct. This is a reserve bank process via your bank or forex dealer. Some funds do pay you directly to Oz, in Rands ie you carry rate risk and can't play for best rate as the rate on every say 25th of the month is your spot rate. Need a forign address nothing more and this transfer does not reduce your SDA or FIA

 

Investments can move as part of of the FIA or SDA process, no formal emigation required 

 

Pension, annuity or similiar regular payments post retirement are taxed by ATO once you have a PR or passport and this is not subject to election. Taxing rights exclusively that of ATO, unless you were in SA military or paid from parliamentary budget vote (i.e. Judges and retired government employees). ATO no longer grant credit for SA taxes paid as both countries subscribe to CRS and you should have updated all FI (financial institutions) of your TIN (Tax indintification Number) being an Oz number and not a SA number. TIN is the tgax number in the country where you tax resident and failure to correctly inform could be charged with perjury in some countries. 

 

There is also a SARS process to have your SA pension and annuity exempted in SA 

 

Investment income is taxed in tax residency country only subject to source country being allowed to deducted a final withholding tax. For interest paid from SA, only interest paid by non-Bank is sibject to 20% withholding tax. SA dividends are subject to 20% withholding tax (irrespective of place of residence) and some ATO taxpayers may apply for a tasx treaty cap being applied. Treaty caps between 5% and 15%

 

I trust this answers your questions

[JJR]

Thanks for all the information and advice. Really appreciated.