Savings and Interest
#17
Forum Regular
Joined: Nov 2008
Posts: 48
Re: Savings and Interest
be carefull in oz all banks etc must by law tell the ato all your accounts savings etc so the ato will know, also when you bring over any amount over $25k they must inform the ato etc of money coming into oz, so be care full all money in accounts is classed as disposable income and counted as tax liable,it is different here compared to uk,in uk you can have you own savings and not get taxed but in oz the ato want a share of it
#18
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Savings and Interest
#19
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Savings and Interest
I think the same thing happens in the UK. I got questioned about a large transfer in the UK once.
Last edited by MartinLuther; Jan 20th 2011 at 11:18 pm.
#20
Re: Savings and Interest
If I wanted to live off the interest of my savings, I'd want ALL the interest without tax being deducted to live off - maximising my income.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
#22
Re: Savings and Interest
I personally think an element of interest earnt on savings should be tax free - maybe the 50% up to a max of $25K or something. Would encourgae saving a bit more.
#24
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Savings and Interest
Not talking about you specifically but people (in general) seem happier when the ATO holds their money and hands it back than when they hold the ATO's money and have to stump it up.
#25
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Savings and Interest
It is a tough one really.
I don't like the idea of the ATO holding on to my money but then I don't like paying the annual bill either.
Psychologically I can see that having a rebate each year must seem the best but I can't decide if it actually is.
#26
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Savings and Interest
In Aus there is the added factor that most people get rebates and use it to put things on lay-by during the July sales. It's like a government run Christmas club.
#27
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Savings and Interest
Perhaps look at it this way - by earning interest you are earning an income. You might not be doing a 40 hour week behind a desk to earn it, but its income none the less. Some government somewhere will want something.
#28
Re: Savings and Interest
If I wanted to live off the interest of my savings, I'd want ALL the interest without tax being deducted to live off - maximising my income.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
>>Also, if you give them your Tax File Number they will take interest immediately (i.e. not give you your $6K tax-free allowance). So personally I'd keep the TFN and pay the tax at the end of the year!<<
I don't know what you mean here by "Interest" - do you mean "Tax"? In any case, by providing your TFN they *don't* take tax - they *do* if you don't provide it. By giving a TFN you defer your tax to year end.
The OP would be best off calculating how much he needs realistically to live off until the worst case non-employment time, put that plus a bit into a high interest accessible account and the rest into one or two deposit accounts. Each institution has requirements to cover their positions day to day, and offers "specials" at higher deposit rates for various terms.
#29
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: Savings and Interest
Banks, ATO, Centerlink all info share, your bank interest can be pulled up by either in seconds. Even my acct can access Interest details via his ATO access.
Centerlink know far more than you can imagine, they sent me a nice letter informing me I had been overseas and for how long, and cancelled my $0 payment We dont claim centerlink, just do annual tax return with allowances you get for having kids, but they knew about my trip. That can only be from immigration/passports.
I would also be a bit wary of sticking your money in your kids name Kids unearned income is taxed at a very high rate after a very small amount.
Centerlink know far more than you can imagine, they sent me a nice letter informing me I had been overseas and for how long, and cancelled my $0 payment We dont claim centerlink, just do annual tax return with allowances you get for having kids, but they knew about my trip. That can only be from immigration/passports.
I would also be a bit wary of sticking your money in your kids name Kids unearned income is taxed at a very high rate after a very small amount.
#30
Re: Savings and Interest
What I was hoping was that it would help us with rent we will have to pay. Like you say we will have to use some of it for living costs until we get work. Fingers crossed it wont take too long!