From 1 July 2007, a new method of pensions taxation has been introduced in Australia. As a result, it will in some circumstances be possible for members in Australian pension schemes to get tax relief on their pension contributions and on their pension benefits, with the scheme itself being subject to tax.
In the UK, the original post-‘A day’ rules relating to overseas schemes did not envisage this unusual system of taxation, and a scheme operating under such a system would not have been able to qualify as a qualifying recognised overseas pension scheme (QROPS).
Therefore, with effect from 1 July 2007, HMRC has amended the relevant UK legislation by means of the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendment) Regulations 2007 so that an Australian scheme operating under this new tax regime will be able to qualify as a QROPS. The Regulations are available at http://www.opsi.gov.uk/si/si2007/20071600.htm .