There has been a slowdown in the number of overseas pension transfers, most notably from the United Kingdom. 

This is a reflection of poor and uncertain market conditions here and overseas in the last 18 months and the appreciating Australian dollar exchange rate deterring repatriation of funds to Australia.

A tax liability can arise in Australia on the repatriation of funds from an overseas pension fund, the tax payable generally based on the growth of the fund since the client first became an Australian tax resident to the transfer date.

The All Ordinaries Index fell 2.9% to close the month at 4,369.9 points, marking the fourth negative month in a row.  Whilst August was another poor month, in a relative sense, the Australian sharemarket was somewhat insulated from the large falls experienced overseas.

Global sharemarkets were all significantly weaker in August with the Dow Jones Index falling 4.4%, the FTSE falling 7.2%, the Nikkei 225 falling 8.9% and the Hang Seng falling 8.5%.

The Australian sharemarket is down sharply today following an overnight global sell-down.  Given the events of the last few weeks (and months), I have put together an article with my thoughts.