Following the transfer of UK sourced pension money to an Australian QROPS, it is then within the Australian superannuation system and will be covered by the Australian rules. However, upon withdrawal or rollover to another superannuation fund, UK tax charges may still apply to the money.
There are two different tests for this. Which one should be used depends on when the transfer of the UK pension money to the QROPS took place.
If it was before 6 April 2017 then UK tax rules will still apply if the member:-
Ø at the time of the rollover or withdrawal is tax resident in the UK or had been earlier in that UK tax year or in any of the 5 preceding UK tax years
If it was on or after 6 April 2017 then UK tax rules will still apply if the member:-
a. at the time of the rollover or withdrawal is tax resident in the UK or had been earlier in that UK tax year or in any of the 10 preceding UK tax years, or
b. a period of 5 years has not passed since the transfer of UK pension money to the QROPS took place.
If UK tax rules do not apply under the above tests, then a rollover of UK sourced pension money to a non-QROPS or a withdrawal by the member can be done without incurring UK tax.