POWERED BY MOMENTUM MEDIA
Treasury working on UK pension block
The Association of Superannuation Funds of Australia (ASFA) has asked Treasury to intervene and find a solution to Australian superannuation funds being restricted from accepting UK pension transfers without a 55 per cent tax charge.
ASFA chief executive, Pauline Vamos, said the group was aware of the recent changes undertaken by the UK government which taxes pensions transfers at 55 per cent if they move into a fund that allows early release at age 55 for ill health or financial hardship.
Recent changes to UK tax laws, which came into effect from 6 April, only allow pension transfers into funds that have an early release because of ill-health and has removed all but one of 1600 Australian funds from a UK list of complying funds.
Vamos said ASFA had asked Treasury to look into the issue as it was not a regulatory matter for Australian superannuation funds but a tax matter between two national governments.
According to Vamos, Treasury had made initial moves to deal with the issue but was unsure how long it would take to reach a resolution.
Vamos said transfers before 6 April should be fine but expected there were thousands more which had been stalled since the changes to UK tax laws.
"We are not sure about the exact numbers but it has caused confusion for the funds, service providers and British ex-pats fund members seeking a transfer," Vamos said.
"Super funds are still seeking clarification and we are thankful that Treasury is engaging the UK authorities on this to provide the right information and guidance for the funds and those members affected."
Vamos noted the UK position was not politically driven but reflected an effort to retain pension funds within the UK tax system, in a similar way to restrictions within the Australian superannuation system, and to reduce leakage within its tax system.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
