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CPF lump sum transfer to Australia

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Cohen123
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CPF lump sum transfer to Australia

Postby Cohen123 » Sun, 23 Dec 2018 7:54 pm

Has anyone transferred their CPF back to Australia ?

Do you have to pay tax on the whole lump sum ? I understand there will be interests paid on the 31st December.

Have been getting conflicting information. Some say it’s on the whole lump sum; while others say it’s only the interest earned. Is that the interest earned after being a tax resident in Australia or does it include the interest earned from other years prior to being tax resident.

Any information is appreciated.

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PNGMK
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Re: CPF lump sum transfer to Australia

Postby PNGMK » Sun, 23 Dec 2018 8:11 pm

1. Interest earned should only be liable for Australian tax for the pro-rata period you have been a tax resident of Australia (i.e. if you moved there on July 1 the tax period would be 180 days if you transferred the full amount on 31st Dec.). There is no CGT or other tax liability that I can think of.
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Cohen123
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Re: CPF lump sum transfer to Australia

Postby Cohen123 » Sun, 23 Dec 2018 8:31 pm

And is that the interests earned for the period as a tax resident or the total interest earned since the CPF account was established ?

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PNGMK
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Re: CPF lump sum transfer to Australia

Postby PNGMK » Sun, 23 Dec 2018 9:00 pm

For the period you were a tax resident of Australia. The other part (when you were non tax resident) has been treated as taxed by Singapore. So if you had a CPF account for 10 years and moved to Australia 0.5 years ago you'd owe tax on the last 6 months interest earned.
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Cohen123
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Re: CPF lump sum transfer to Australia

Postby Cohen123 » Thu, 27 Dec 2018 11:17 am

Thank you very much for your info.

Always appreciate your help.


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