Today’s planning, tomorrow's peace of mind

Planning for your future by balancing short-term gain with long-term protection 

Determining whether a pension transfer will enhance or diminish your financial standing requires a meticulous examination of your unique circumstances and goals. 

And that was the advice our team from Pitcher Partners in Sydney, Australia gave a Maltese pension holder seeking guidance on the tax implications of transferring their Maltese pension capital, originally transferred from a UK pension provider, to an Australian Superannuation Fund. The Australian fund was registered as a Recognised Overseas Pension fund for UK purposes. 

The client's primary concerns revolved around potential breaches of non-concessional contribution limits and the calculation of estimated applicable fund earnings. They wanted to understand the immediate tax implications in comparison to potential long-term tax savings.

A holistic approach 

Informed decision-making was paramount given the intricacies of the Australian tax system. 

To provide a complete overview of the client’s position, our team identified the non-concessional contributions limits, and calculated applicable fund earning and associated earnings in the event of breaching contribution limits. 

Their analysis involved a thorough review of the client's financial situation, the structure of the Maltese pension, and the Australian Superannuation Fund's compliance with Recognised Overseas Pension fund requirements for UK purposes. 

Additionally, an illustrative cash flow was provided, outlining the timing of tax payments and when funds could be released from the Australian superannuation.

Our team’s recommendations considered the client’s financial goals, risk tolerance, and the regulatory frameworks governing pension transfers between Malta and Australia. 

Informed decision-making 

This holistic approach ensured the client had a clear understanding of the potential tax implications and timing of tax liabilities associated with the transfer. This information allowed them to find a solution that aligned their financial objectives with meeting regulatory requirements.