keel

Hello all

I'm busy filling in my Oz tax return for 2003/04 ( yes I know it's a month late).

What I would like to know is the interest that I recieved on my bond money liabe to Tax and if it isn't do I even have to mention it?

Keel

kirsty&al

Yes it is.

If you receive interest while you are still in the UK then the ATO will take a 10% witholding tax and the IR will take the difference between that and what you would have paid in the UK. If you would have paid less than 10% in the UK then you don't pay anything in the UK, but the ATO will still keep its 10%.

If you receive the interest while you are in Oz (and you are now tax resident) then you will pay Oz tax. If you don't have a Tax File Number (TFN) then you will be charged 48.5%, otherwise it will be your marginal rate.

Regards
Alistair

JAJ

If you don't have a TFN they will deduct 48.5% but you may be able to reclaim this (I think) if it's higher than your marginal rate, or at least the difference.

If you have borrowed money to make the investment, you might be able to offset the interest paid on the loan against the income. Get professional advice.

Jeremy