How To Transfer a UK Pension to Australian Superannuation?

This guide explains how to transfer a UK pension to Australian superannuation in a compliant and tax-efficient manner. It outlines the pensions that qualify for transfer, the residency and age requirements, key tax liabilities, and the formal transfer process.

For those seeking more flexibility or who are not eligible to use a qualifying recognised overseas pension scheme (QROPS), we also examine international self-invested personal pensions (SIPPs) as a strategic alternative.

Which UK Pensions Can Be Moved to Australian Superannuation?

Many UK workplace and personal pensions may be eligible for transfer to Australian superannuation, provided certain conditions are met. These typically include:

• Private sector defined benefit (DB) schemes.
• Funded public sector pension schemes.
• Defined contribution (DC) pensions.
• Occupational pension schemes.
• Small self-administered schemes (SSAS).

However, UK State Pensions and unfunded public sector schemes—such as those for NHS employees, teachers, armed forces personnel, and police officers—are not transferable, as they are not backed by actual pension assets and are therefore ineligible under HMRC rules.

Additionally, annuities that are already in payment cannot be transferred to an Australian super fund.

Eligibility Requirements for Transferring a UK Pension to Australia

Your UK pension type is one of several factors that affect your eligibility to transfer a UK pension to Australia. Other factors include:

1. Australian pension type
2. Your age

Australian Pension Type

His Majesty’s Revenue and Customs (HMRC) allows transfers of UK pensions abroad only if the receiving schemes meet strict requirements that classify them as qualifying recognised overseas pension schemes (QROPS).

HMRC publishes a searchable list of recognised overseas pension schemes categorised by country.

While over 1,000 Australian schemes may appear on this list, the vast majority are private self-managed super funds (SMSFs) individually registered as QROPS for specific clients. These schemes are not publicly available or open for general transfers.

As of 2025, UK pension holders have two practical options: transferring to the Australian Expatriate Superannuation Fund (AESF)—the only retail super fund with active QROPS status—or establishing a private SMSF and applying for QROPS recognition from HMRC. The ROPS list is updated regularly, and schemes may be added or removed at any time.

Your Age

In the UK, you can start withdrawing from a workplace or personal pension at the age of 55, with earlier access possible in cases of ill health. To ensure alignment with the UK legislation, Australian super funds prevent UK expats from transferring their pensions if they’re under 55.

UK expats who don’t want to wait until they’re 55 to transfer their pensions to a more suitable scheme should consider other options, such as international self-invested personal pensions (SIPPs).

Steps for Transferring a UK Pension to Australian Superannuation

After assessing and confirming your eligibility, the steps to complete the transfer process and remain compliant with the UK and Australian laws typically include:

1. Consulting a pension transfer adviser
2. Finding a suitable superannuation fund
3. Obtaining a transfer value of your pension
4. Completing the paperwork
5. Monitoring the transfer

Consulting a Pension Transfer Adviser

Pension transfer advisers who have experience in helping expats move their pensions across borders have an invaluable role in the process. They can:

• Evaluate your unique circumstances and create a personalised pension transfer strategy
• Help you choose the right super fund that aligns with your long-term plans
• Provide an overview of relevant UK and Australian tax rules
• Optimise your pension for maximum tax efficiency
• Explain the advantages and drawbacks of moving your pension to Australia
• Help you collect and complete the necessary paperwork
• Propose alternative solutions if transferring to Australian superannuation isn’t possible or doesn’t meet your needs

Finding a Suitable Superannuation Fund

Australian super funds can vary in terms of eligibility criteria, conditions, and fees, and reviewing them carefully is crucial for finding one that suits your preferences. A pension transfer expert can help you understand which superannuation funds are available to you and how they align with your financial expectations.

Obtaining a Transfer Value of Your Pension

Before moving your pension abroad, you must obtain the cash equivalent transfer value (CETV) for a DB pension, or the transfer value for a DC pension, which indicates the amount of money available for the transfer to the chosen superannuation fund.

You can request this information from your UK pension provider or authorise your pension transfer adviser to obtain it for you.

Completing the Paperwork

You’ll need to complete form APSS263 and forward it to your UK scheme administrator to notify them of the transfer to an Australian QROPS. You’ll have to provide the following information:

1. Your personal details
2. National Insurance Number
3. Details on when you left the UK (if you left it) and your current address
4. Info on the QROPS to which you want to transfer your pension (HMRC reference number, name, and address)
5. Your employment details

Both the UK provider and the receiving scheme may also require additional documentation. Your pension transfer adviser can guide you through the process and help you complete it correctly.

Monitoring the Transfer

Once your UK provider receives the necessary paperwork, they will begin the transfer process, which typically takes between four to six months, depending on the scheme’s complexity and provider responsiveness, depending on the type of pension you’re transferring and the involved assets. Until the process is completed, you should stay in contact with your pension transfer specialist, who will inform you of any changes or delays.

Tax Implications of Transferring a UK Pension to Australian Superannuation

Transferring a UK pension to Australian superannuation may expose you to taxes that could affect the transfer’s cost-efficiency. Understanding the associated costs and optimising the transfer for the potential liabilities can help you preserve a greater portion of your benefits.

Tax Liabilities in the UK

You may be liable for the following taxes and charges in the UK:

Tax on Pensions in Australia

A UK pension transfer to an Australian superannuation is treated as a non-concessional contribution. This means your super fund won’t tax the funds you’re transferring, provided you don’t exceed the non-concessional contribution cap of $120,000.

You may be eligible for the bring-forward arrangement, which allows you to contribute up to three times the annual cap—AUD 360,000—over a rolling three-year period if you are under the age of 75 at any time during the tax year.

If the amount you’re transferring exceeds this cap and you’re under 75 at any time in the tax year, you may qualify for the bring-forward arrangement. The arrangement would allow you to contribute three times the yearly cap ($360,000). If you exceed the cap, you will:

• Have to lodge a tax return for that year
• Be liable for extra tax if you don’t remove the excess amount

If the transfer amount is equal to or exceeds the general transfer balance cap of AUD 1.9 million for the 2025–26 tax year, your non-concessional contribution cap will be nil for that year.

Once you transfer the pension, your super fund will be taxed according to Australian laws. Depending on your fund’s structure and conditions, you may be taxed at withdrawal or during the accumulation stage.

Australia’s Six-Month Rule

Australia has a six-month rule that ensures you’re not taxed on your UK fund’s earnings if you either:

1. Complete the transfer within the first six months of becoming an Australian resident for tax purposes
2. Cease foreign employment within the first six months

If you become an Australian resident for tax purposes in August and transfer your pension by February of the following year, the growth won’t be treated as applicable fund earnings, and you won’t have to declare it in your tax return.

If you can’t utilise the six-month rule to reduce your taxes, you may be able to include those earnings in your fund’s assessable income. This way, you would avoid paying income tax on the relevant sum; it would be taxed at the fund’s standard 15% tax rate.

Considering that income tax rates in Australia can reach 45%, this strategy can benefit high-net-worth expats who meet the following conditions:

1. Having been Australian residents for tax purposes for more than six months
2. Having transferred 100% of their UK fund to an eligible Australian superannuation
3. Not having any interest in a UK pension fund after the transfer

Depending on your residency, you may, in principle, be exposed to tax on the same income in both the UK and Australia. To prevent such events, the two countries have signed a double taxation agreement (DTA) to ensure you’re liable for tax in only one jurisdiction.

The UK–Australia Double Taxation Agreement (DTA) is designed to prevent double taxation of pension income. However, accurate determination of tax residency and proper reporting under both jurisdictions are essential to ensure full compliance and to avoid inadvertent dual taxation.

International Self-Invested Personal Pension: A Valuable Alternative for Expats

While a UK pension transfer to an Australian super QROPS offers certain advantages, there are several downsides to consider:

• Inability to transfer the pension until you’re 55
• Loss of guaranteed benefits you may have in your UK pension
• Tax exposure if you don’t transfer within six months of becoming an Australian resident for tax purposes, or if your pension’s value exceeds the overseas transfer allowance

Considering these potential downsides, some UK expats may seek QROPS alternatives that offer easier pension management and improved tax efficiency, such as International SIPPs. Some other advantages offered by this pension scheme include:

Always ensure your international SIPP provider is authorised by the UK Financial Conduct Authority (FCA) and complies with HMRC requirements for overseas pensions.