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Old Jul 22nd 2007, 4:29 am   #1
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Default Bringing money into australia - tax issues?

Hi

Hope anyone can help. I've been in australia for 2 years and sold my flat in the UK 5 months ago. I want to transfer my money to my bank here in Oz to buy property here. Will I have to pay tax when I bring it over? Will it be taxed whilst it sits in my ANZ account while I'm looking for property? It's currently being taxed sitting in my UK bank account and it all seem unfair that it's dripping away whilst I look for a place to buy. At this rate I'll not have enough for the deposit!

Any info would be greatly appreciated!

Jason
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Old Jul 22nd 2007, 4:57 am   #2
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by jasonw View Post
Hi

Hope anyone can help. I've been in australia for 2 years and sold my flat in the UK 5 months ago. I want to transfer my money to my bank here in Oz to buy property here. Will I have to pay tax when I bring it over? Will it be taxed whilst it sits in my ANZ account while I'm looking for property? It's currently being taxed sitting in my UK bank account and it all seem unfair that it's dripping away whilst I look for a place to buy. At this rate I'll not have enough for the deposit!

Any info would be greatly appreciated!

Jason
Gday Jason,
Im not sure, of this one. I think the cut off is 6 months after you enter Australia.
I would talk to a financial advisor and or tax official, and perhaps contact ato or visit thier website on www.ato.gov.au
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Old Jul 22nd 2007, 4:58 am   #3
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by Timber Floor Au View Post
Gday Jason,
Im not sure, of this one. I think the cut off is 6 months after you enter Australia.
There is no tax on transferring your own money from one place to another!

But the question is whether the OP has declared the interest as Australian income, which he is supposed to do.
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Old Jul 22nd 2007, 5:16 am   #4
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by jasonw View Post
Hi

Hope anyone can help. I've been in australia for 2 years and sold my flat in the UK 5 months ago. I want to transfer my money to my bank here in Oz to buy property here. Will I have to pay tax when I bring it over? Will it be taxed whilst it sits in my ANZ account while I'm looking for property? It's currently being taxed sitting in my UK bank account and it all seem unfair that it's dripping away whilst I look for a place to buy. At this rate I'll not have enough for the deposit!

Any info would be greatly appreciated!

Jason
Jason you should declare yourself non-resident in the UK and have the interest paid gross. Then declare it on your OZ tax return. No tax is paid on the capital lump as in income tax, but you may be liable for capital gains as you sold the property after being resident in Oz. Interest will be taxed in your ANZ if you bring it over. If you are worried seek advise - Alan Collette on this forum is a good contact.
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Old Jul 22nd 2007, 5:25 am   #5
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Default Re: Bringing money into australia - tax issues?

Thanks for the quick replies guys!

I'll go visit an accountant (when I find one).

Cheers
jason
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Old Aug 29th 2007, 9:16 pm   #6
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by JAJ View Post
There is no tax on transferring your own money from one place to another!

But the question is whether the OP has declared the interest as Australian income, which he is supposed to do.
Just done a search on BE so sorry to butt in on a month-old conversation but.....

To clarify, if we bring money with us to Oz as a deposit for a house, we do not get taxed? But if we are earning interest on it while we look for a house we have to declare the interest?

Thanks
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Old Aug 29th 2007, 9:23 pm   #7
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by movin'on View Post
Just done a search on BE so sorry to butt in on a month-old conversation but.....

To clarify, if we bring money with us to Oz as a deposit for a house, we do not get taxed? But if we are earning interest on it while we look for a house we have to declare the interest?

Thanks
You have to declare ALL interest on money in the bank in Aus, whether its $3 or $300.
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Old Aug 30th 2007, 1:19 am   #8
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Default Re: Bringing money into australia - tax issues?

The tax office are particularly keen in this area as well
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Old Aug 30th 2007, 6:22 am   #9
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Default Re: Bringing money into australia - tax issues?

Quote:
Originally Posted by movin'on View Post
Just done a search on BE so sorry to butt in on a month-old conversation but.....

To clarify, if we bring money with us to Oz as a deposit for a house, we do not get taxed? But if we are earning interest on it while we look for a house we have to declare the interest?

Thanks
You will not get taxed on the lump capital sum from selling your house. You basically do not get taxed on the money you bring from the UK to Australia.

If you move here, rent a while and shove all your cash in the bank then you will have to declare the interest earnt on your tax return as income.
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Old Aug 30th 2007, 7:14 am   #10
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Default Re: Bringing money into australia - tax issues?

but if you buy a place straight away then no tax has to be paid??

is that right?
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Old Aug 30th 2007, 7:00 pm   #11
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by Centurion View Post
You will not get taxed on the lump capital sum from selling your house. You basically do not get taxed on the money you bring from the UK to Australia.

If you move here, rent a while and shove all your cash in the bank then you will have to declare the interest earnt on your tax return as income.
Thanks
Good to know.
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Old Aug 30th 2007, 8:00 pm   #12
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Default Re: Bringing money into australia - tax issues?

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Originally Posted by hitchcock71 View Post
but if you buy a place straight away then no tax has to be paid??

is that right?
If you buy a place straight away, then your money won't be in a bank account earning interest. Hence you won't be declaring any interest on your tax return. Hence you won't be paying any tax on (non existent) bank interest. Dooh!

In your particular case, it might be best if you gibe me all your money and I look after it for you. I'll pm you my bank details .

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Old Aug 31st 2007, 12:15 pm   #13
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Default Re: Bringing money into australia - tax issues?

nice try
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