Bringing money to Oz and taxation
Oct 27th 2005, 11:01 am
#1
Guest
Posts: n/a
Bringing money to Oz and taxation
I have been trying to find an answer to this question on the net (including the
ATO website), but could not locate anything definitive.
Let's say I have US$100K in my local bank now. Suppose I move to Oz next month
and wire US$50K to my Oz bank account. This amount is definitely not taxable.
Now one year later, I decided to clear the bank account and wire another US$50K
to my Oz bank account. My question is: is this extra US$50K considered "income",
and hence taxable?
ATO website), but could not locate anything definitive.
Let's say I have US$100K in my local bank now. Suppose I move to Oz next month
and wire US$50K to my Oz bank account. This amount is definitely not taxable.
Now one year later, I decided to clear the bank account and wire another US$50K
to my Oz bank account. My question is: is this extra US$50K considered "income",
and hence taxable?
Oct 27th 2005, 12:05 pm
#2
Joined: Feb 2004
Posts: 622
Re: Bringing money to Oz and taxation
Alan Collett posted something on this a few months back.
It went something like 'if the funds were in an account that was established prior to 2003 (I think) then a favourable change in exchange rates would not be seen as income.
I don't think the 50k is taxable in itself, I suppose depending on if you've already paid tax on it in your home country or whether it's proceeds from your home sale, but interest earned may be, and possibly any return due to interest rate changes could be taxable, or tax deductable depending whether you win or lose.
The bank account is the interesting bit. Search all of Alan Collett's posts and you should find the info.
It went something like 'if the funds were in an account that was established prior to 2003 (I think) then a favourable change in exchange rates would not be seen as income.
I don't think the 50k is taxable in itself, I suppose depending on if you've already paid tax on it in your home country or whether it's proceeds from your home sale, but interest earned may be, and possibly any return due to interest rate changes could be taxable, or tax deductable depending whether you win or lose.
The bank account is the interesting bit. Search all of Alan Collett's posts and you should find the info.
Originally Posted by Victor At Sevencoins Dot Com
I have been trying to find an answer to this question on the net (including the
ATO website), but could not locate anything definitive.
Let's say I have US$100K in my local bank now. Suppose I move to Oz next month
and wire US$50K to my Oz bank account. This amount is definitely not taxable.
Now one year later, I decided to clear the bank account and wire another US$50K
to my Oz bank account. My question is: is this extra US$50K considered "income",
and hence taxable?
ATO website), but could not locate anything definitive.
Let's say I have US$100K in my local bank now. Suppose I move to Oz next month
and wire US$50K to my Oz bank account. This amount is definitely not taxable.
Now one year later, I decided to clear the bank account and wire another US$50K
to my Oz bank account. My question is: is this extra US$50K considered "income",
and hence taxable?
Oct 27th 2005, 9:16 pm
#3
An Australian Citizen !!
Joined: Aug 2004
Location: Terrigal - NSW Central Coast since June 2005
Posts: 1,237
Re: Bringing money to Oz and taxation
Originally Posted by stevereed
Alan Collett posted something on this a few months back.
It went something like 'if the funds were in an account that was established prior to 2003 (I think) then a favourable change in exchange rates would not be seen as income.
I don't think the 50k is taxable in itself, I suppose depending on if you've already paid tax on it in your home country or whether it's proceeds from your home sale, but interest earned may be, and possibly any return due to interest rate changes could be taxable, or tax deductable depending whether you win or lose.
The bank account is the interesting bit. Search all of Alan Collett's posts and you should find the info.
It went something like 'if the funds were in an account that was established prior to 2003 (I think) then a favourable change in exchange rates would not be seen as income.
I don't think the 50k is taxable in itself, I suppose depending on if you've already paid tax on it in your home country or whether it's proceeds from your home sale, but interest earned may be, and possibly any return due to interest rate changes could be taxable, or tax deductable depending whether you win or lose.
The bank account is the interesting bit. Search all of Alan Collett's posts and you should find the info.
The date you're looking for is 1 July 2003 - to tie in with the Australian tax year.
Regards
JIm
Oct 28th 2005, 4:13 am
#4
Guest
Posts: n/a
Re: Bringing money to Oz and taxation
I went back to read some of Alan's threads as recommended. Boy, this stuff is
really so complicated! :-)
For a smallish sum of money like US$50K, do you think it's worthwhile engaging a
tax accountant?
If not, what are the other alternatives?
really so complicated! :-)
For a smallish sum of money like US$50K, do you think it's worthwhile engaging a
tax accountant?
If not, what are the other alternatives?
