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CPF to Oz - tax rulings help

Danni12345

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#1
Anyone transferred their CPF to Australia?

Do you pay tax on the whole lump sum or only on the interest earned ?

And is that on the interest earned while being a tax resident or on all interest earned, including that earned prior to being a tax resident in Australia?

Have been reading some conflicting information about CPF and it is not considered a superannuation fund by definition in Australia since it can be used in Singapore for housing and education. Hence any CPF transfers is treated as a non complying foreign trust fund.

Many thanks to anyone with information, especially those who have done transfers in the last couple of years.
 
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Danni12345

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#2
Would any who have some info be able to help?

Or recommend any good accountants in Oz who have experience in this sort of matters? I have called a couple of those accountants here but they are not familiar with Singapore CPF issues and how they are treated in Oz?

Please help. Thank you.
 

bobby

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#4
Why you don't listen....transfer your CPF to your Singapore bank account first and then from there remit your funds over to your Australian bank accounts.
 

Danni12345

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#5
Thanks Bobby,

Will do that. Still need to determine my tax obligations and be prepared for it. Hence , reading up. Contacting the accountants here has not led to any results as they are not familiar with CPF.

I am grateful for your sharing. Please don’t think I’m not listening or unconvinced. Your previous posts have shed light on the bank issue. Just wanted to prepare myself mentally for the tax part; if indeed prepare myself for the whole renunciation process.

To all the people who have taken the time to share their thoughts, opinions and experiences on this issue, this 48 year old man here thanks you for your helpful worlds.
 
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bobby

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#6
Thanks Bobby,

Will do that. Still need to determine my tax obligations and be prepared for it. Hence , reading up. Contacting the accountants here has not led to any results as they are not familiar with CPF.

I am grateful for your sharing. Please don’t think I’m not listening or unconvinced. Your previous posts have shed light on the bank issue. Just wanted to prepare myself mentally for the tax part; if indeed prepare myself for the whole renunciation process.

To all the people who have taken the time to share their thoughts, opinions and experiences on this issue, this 48 year old man here thanks you for your helpful worlds.
Danni...nothing wrong with giving up your SG pink NRIC. Takes a braver person to do than those that choose to stay on.

Your CPF monies is yours..hard earned. Take my advise seriously.

Ask CPF to pay the entire amount via local interbank MEPS to your SG bank. and ask your SG bank to provide you with a token so that you can carry out your own overseas remittance as and when you see fit.

ATO cannot tax you on your own funds being transferred from same name to same name interbank. If any questions asked, theses questions will be asked by your SG bank in respect of your large funds from CPF, which is legitimate and tax free.

If you have more than $500,000 in your account, you will be assigned a relationship manager from whom you can also liaise with regarding larger transfers and better FX rates.

Yoru changed status of citizenship will have no bearing whatsoever on your SG account.
 

Danni12345

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#7
Thank you Bobby, your latest posting helped me to focus on the right thing.

Transferring from same account name to same account name .... It’s a perspective I needed to hear and know.

Thank you
 

Danni12345

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#8
Just wanted to update on initial conversation with an accountant.

The lump sum transfer of CPF is subjected to tax the day you received it. It is treated as a foreign investment fund. The bad news is ATO ruling clearly states that there is no apportionment of the amount included in assessable income by reference to the residency status of the beneficiary as at the time the income was derived by the trust.

What this means is that all the interest you have earned all those years is considered income when you received it.
 
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Danni12345

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#10
Are you sure lump sum transfer of CPF is taxable in Australia? How about US, Canada, and other countries?
The accountant only talks about Australian scenario. Not sure about other countries.

According to the accountant, the tax is on the INTEREST earned in the Foreign Investment Fund (FIF) account and NOT on the lump sum. But it is on all the interest earned the whole time, including before you became a tax resident. It is assessable because you are a tax resident the day you get distribution (obtained the lump sum). CPF is a not considered a compliant superannuation fund in Australia, hence it is treated as a foreign investment fund.
 
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Bobbyfoo

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#11
Tax on interest earned. Not too bad lah. You can take out all CPF. My estimate your cpf $400 to $500K. Like kena TOTO. Feel very happy for you. IMHO the best option ask CPF board convert to A$ & remit one lump sum to your overseas account. Me too old to emigrate can onli feel rich looking at quarterly cpf statement.
 

Danni12345

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Loyal
#12
Hi Bobby,

That’s my understanding from this accountant. I can only download the statements for the 10 years. And if I can get all the statements going back to 1995, that would be great. At the moment, I called CPF and they will not confirm my total interest earned in my account.
 
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