Still Game

So, neither myself nor OH are experts in finances (as in investments etc..). I have a small nest egg inheritance in an oz bank account earning pretty much zero interest. I'm unable to open a saving account in Oz not living there at present.

With the exchange rate AUD to GBP being reasonably strong just now, was thinking of sending money over to British savings account and then using as and when required in Oz. Won't need to touch the money until we purchase/build in Oz which is at least a year off from when we actually get there (aiming for approx June 2017). I am conscious the the exchange rates will go up and down and it's a risk. The fee for sending this money over today is £114. I just hate to see the money doing nothing in Oz.

Any advice appreciated, I understand this is a forum and any advice should be checked.

Beoz

You mean you want to do currency trading ..... good luck.

Still Game

was wondering if there are any taxes or anything other I need to be aware of if I do this.

Beoz

Only if you make money.

Bermudashorts

Low interest rates are pretty standard the world over at the moment.

To pick up on Beoz point, you really might as well ask if you should put your money on red or black. It doesn't matter how financially savvy you are, if somebody tells you that they know what will work out best, then they are lying.

Have you ever been taxed by the act of transferring money from one account to another before? No of course not, puzzles me why people think they might be just because of location or currency denomination of said account.

Still Game

You don't have to mention on Aussie tax returns?

Beoz

You don't need to mention the tranfer as such, but you should mention if you make money or lose money as the case may be.

If you are asking whether you can make money and hide it from the tax people. Probably but your call.

Like bank interest you only pay tax once you make money and you only pay tax on the money you make. Its not like you pay tax just because you take a wild gamble and make a currency transfer.

Bermudashorts

The transfer, no, but if you make income then that would be reported as normal, no matter what bank account you use.

Still Game

Thanks Beoz, not looking to hide - just asking if there was a tax that I was to be aware of (it's been a long time since I lived in Oz and I've never had any investments or anything to claim). Just wanted to be informed.

Bermudashorts - that's what I was asking about, think I may have confused you with 'paying tax from one account to another' but that's not what I asked.

Cheers for the responses.

Bermudashorts

You didn't confuse me you said "do I need to be aware of any taxes if I do this". With "this" being the act of transferring money which is the only thing you had asked about.

If you want answers you should try wording your questions a bit better. Anyway I won't be boterhing again if you are going to be rude. Try playing someone for advice.

Oh and of course you have to pay tax on income, I didn't think there would be anybody dim enough to actually need to ask that.

rammygirl

$114 fees!

I suggest you check out currency forex companies rather than banks. No fees and better exchange rates can be found. Try Moneycorp or OFX for a start. You need to register but worth it, especially for larger amounts as can save you loads. I have never paid any fees for FX transfers. Sometimes BACS fees in UK for very large transfers (Like house sale) to move the Stirling into the forex Stirling account but never for the currency exchange itself.

spouse of scouse

Speaking of rude..

Funny, I thought we answered questions on BE, not called people who asked them 'dim'.

Still Game

Thanks SoS. I'm not sure what I did or said to attract the response, if it was meant to hurt me, it did. I've read and re-read my message and can't see where I was rude? It certainly wasn't my intention to be rude. I wasn't asking about taxing from one account to another, just if I would need to be aware of any taxes (ie: claiming on a tax return or somewhere else I wasn't aware of). Nevermind. I feel a bit stupid now, perhaps I am a bit dim. As mentioned in the outset, I've no experience with this type of thing and as norm, wanted to ask forum members who are experienced on here.

Rammygirl - thanks. The $114 fees are for a transaction around the 20k mark, thought this was good but perhaps not. Using a transfer service, no charges from the bank/s

rammygirl

We have transferred various amounts above and below that amount and never paid fees. Does pay to look at the exchange rate too as it is the overall deal you need to look at. Many FX companies will allow to to set a limit order so the deal will be triggered when the exchange rate hits a certain point you are happy with. We have done this when timing wasn't crucial and saved a lot of constant checking rates. Sometimes the deal gets triggered overnight. This again on a large sum can save significant cash!

the troubadour

Rather obvious though isn't it? Still better to make money and pay the tax, than to leave it in a dormant account, or one with negative interest in some cases.