Matthew Marcarian | 9 Oct 2026 | 3 min read
Information For Australian Residents With Overseas Retirement Savings
If you live in Australia and receive a foreign pension or have overseas retirement savings, it’s important to understand how these are taxed. The rules are different from Australian superannuation and can be complex.
Key Points For You To Know
1. Worldwide Income Is Taxable
- As an Australian tax resident, you must declare all income you earn worldwide, including pensions or annuities from overseas.
- Even if your pension is tax-free in the country it comes from, it may still be taxable in Australia.
2. Double Tax Agreements (DTAs)
- Australia has tax treaties with many countries (including the UK, US, and New Zealand).
- These treaties decide where your pension is taxed and can prevent double taxation.
- You may be able to claim a credit for foreign tax already paid.
3. Foreign Superannuation Funds
- Some foreign savings funds do not qualify as “foreign superannuation funds” under Australian law.
- This affects how withdrawals or transfers are taxed.
- Lump sums received within 6 months of becoming a resident from a ‘Foreign Superannuation Fund’ are usually tax-free. After that, part of the withdrawal may be taxable.
4. Country-Specific Examples
- UK: State Pension is taxable in Australia. Some foreign funds may allow rollovers to Australian superannuation funds.
- US: 401(k) and IRA accounts are usually taxed in both countries, but credits may be available. US Social Security is not taxed in Australia.
- Singapore: The ATO has privately ruled that it does not consider the Singapore CPF to be a foreign superannuation fund – withdrawals are likely to be taxable in Australia.
- New Zealand: KiwiSaver may be transferable to Australian super.
5. Planning Considerations
- Timing matters – the 6-month rule can save tax when withdrawing after becoming an Australian resident.
- Transfers to Australia – can be beneficial but may trigger contribution caps.
- Record keeping – always keep documents showing how much tax you paid overseas, how much was contributed, and the value of your fund when you moved to Australia.
What You Should Do
- Tell your accountant about any overseas pensions or retirement accounts.
- Ensure you seek financial advice before you transfer benefits as tax is not the only
consideration. - Keep all paperwork, including foreign tax records.
- Get advice before making withdrawals or transfers – the timing can significantly change the tax outcome.
Important – This is general information only. Everyone’s situation is different. Please speak with your accountant or an international pensions specialist before making any decisions about your foreign pension.
