What are Double Taxation Agreements?
Double Taxation Agreements are usually tax treaties that exist between two countries to prevent double taxation of international individuals and businesses.
One of the risks when it comes to moving your pension is that you may be taxed twice - both by your home country and by the country where you transfer your pension, if there isn’t a Double Taxation Agreement in place. Please note: In most cases,if the tax rates in the two countries are different, you will probably end up paying the higher tax rate.
Depending on where you are trying to move your pension you may be eligible for “full relief” or “partial relief” from double taxation. You will have to submit a claim form to get relief from double taxation. You may submit it prior to the transfer so you are not taxed, or after the transfer so you are reimbursed for the tax you have already paid. Consult your pension or retirement account manager or the government taxation office for details on submitting these forms for relief from double taxation.
Here is some basic information for transferring your pension or retirement to and from the U.S., U.K., and Australia.
Moving your Australian pension overseas
What happens to Australian Age Pension and superannuation when moving abroad?
Age Pension can generally be paid even if you live in another country, what changes is the amount you receive. That amount is determined by how long you plan to be abroad and any International Social Security Agreements, which may apply. Superannuation is usually still subject to the rules around withdrawal as if you were living in Australia.