Madasacow: I'm ex-RAF (SNCO), and have lived in Oz since 1983. My Service pension is paid to me here, by cheque drawn on HM Paymaster-General, every month. I see to the exchange and banking, and DO NOT pay UK Income Tax. I was given the option of a direct transfer to my bank account, but chose to keep it this way some years back.
Pension IS index-linked, and is added to Oz income for total annual earnings for tax liability calculations. Oz tax rates are bloody awful, top rate 48.5%, INCLUDING 1.5% Medicare levy. As has been said, the cost of living here is much lower than UK, hence the exchange is, usually, to our distinct advantage here. My pension goes a long way!
The UK Age Pension is NOT index-linked for ex-pats in Oz, it has been a bone of contention between the respective governments for a long time past, and I doubt it will ever be resolved to our benefit.
Hope this is of help, and I wish you well if you do decide to jump. Just remember the state of Oz aviation, if that is your intent, BE CAREFUL!!
Kind regards,
TheNightOwl.
Last edited by TheNightOwl; 18th Sep 2002 at 04:18.