Not strictly mil, but I know many reading this do emigrate so it could be of interest if you're thinking about taking a pension with you. No longer permissible with AFPS of course.
British expats in Australia caught in pensions cap - FT.com
If the link doesn't work (paywall), search: $500,000 or £250,000 pension transfer limit Australia immediate effect FT Jo Cumbo. Jo's well worth a follow on Twitter, @josephinecumbo.
**Britons planning to retire to Australia face a severe cut to the pensions they bring with them. Australia has consistently been one of the most popular destinations for Britons moving abroad over the past 20 years, with tens of thousands emigrating Down Under each year. But last week, the Australian government imposed, with immediate effect, a $500,000 (£250,000) lifetime cap on contributions made into Australian pension accounts.
The move was designed to catch Australians injecting large contributions into their funds, for example the proceeds of a house sale. But it will also catch Britons who hoped to transfer their pensions. “Previously, a person could contribute non-concessional amounts of $180,000 per year or bring forward three-year contributions and make a $540,000 contribution if under 65,” said Liam Shorte, director of Verante, a New South Wales based financial planning firm.
“This allowed UK expats moving to Australia to move $720,000 pretty quickly and they could move a further $540,000 three years later and so on. “But now that a lifetime limit of $500,000 has been placed on non-concessional contributions this severely limits the amount that can be transferred.” Mr Shorte said those trying to move more than the $500,000 limit in one transfer could see their whole contribution “sent back to the UK” under rules that prevent accounts from accepting lump sums over the legal limits.
Individuals who breach the new $500,000 cap face penalty taxes of up to 45 per cent on the excess, or being asked to remove the excess contribution. “Many people will find themselves in a difficult situation now because their UK pensions may breach the new $500,000 cap,” said Geraint Davies, managing director of Monfort International, a pension advisory firm. Anyone thinking of migrating or returning to Australia as a national has just had a lifetime limit slapped on them. It hits everyone who is thinking of moving Down Under and came into force immediately. There was no time to plan.”
UK advisers said the measure could also potentially hit high earning Australians living in the UK, who had built substantial pensions, and returned to Australia. Many prominent Australian-born individuals have lived, or are living in the UK, including Kylie Minogue, the singer, Natalie Bennett, the Green party leader, and Sir Lynton Crosby, the political strategist. Pension savings in the UK can reach a lifetime cap of £1m, nearly four times the new Australian cap.
The new $500,000 limit was part of a wider move by the Australian government to curtail the amount of cash that Australians can put into their funds and draw tax free in retirement. It will be calculated retrospectively for everyone back to July 1 2007.**