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This makes me so cross!

(54 Posts)
Shinamae Fri 22-May-20 11:21:20

This makes me so cross!

Redtop1 Sat 23-May-20 20:01:42

Not paying tax on an Australian Pension, not strictly true, although they do receive a higher amount compared to the UK State Pension.

The Australian’State Pension’ is means tested and is paid via Centrelink’ which is similar to DSS here in the UK. If you have a certain amount of money in the bank (Unsure if the amount) you aren’t eligible to receive it (unlike UK State Pension which you don’t pay tax on, although UK Pension Credit Supplements are means tested). Where as everyone in the UK pays National Insurance Contributions gets a pension.

Australian Superannuation is the pension your employer legally has to pay a set percentage this was 9% due to go up to 12% (as we left in 2017) of your salary and you had the option to pay extra (Similar to AVC’s in the UK), you also had the choice of paying on it before tax or after tax (After Tax meant that you didn’t pay any tax when you received your Superannuation.

So the system isn’t the same, you also don’t get ‘free prescriptions’ at 60, but once you reach pensionable age 66 rising to 67 years you get a card and pay a reduced Set amount (I believe about £3 per item for medication). Prescriptions items aren’t one set amount, what you pay depends on the medication. I was paying the equivalent £70 per month for the regular medications I need, whereas on my return to the UK - over 60 I didn’t pay anything.

Callistemon Sat 23-May-20 22:55:50

Ah, yes, I see now Maggiemaybe.
It is all rather complicated.

Callistemon Sat 23-May-20 23:02:20

Redtop it's not just money in the bank which is included I Australua. People we know bought a plot of land where they intended to build a retirement house one day and that was included too when assessing whether or not they could receive a pension.

If the UK pension was above the tax threshold, it would be taxed. It's not the fact that it is a pension, it is that it would not usually be above the tax threshold, although, as Maggiemaybe has pointed out, if SERPS was added, that is possible.