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$100,000 investment & tax on interest?

$100,000 investment & tax on interest?

Old Dec 16th 2003, 2:50 pm
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Default $100,000 investment & tax on interest?

Nice suprise in the mail this morning, a cheque for the interest on the $100,000 investment I put up for the extra 5 points. Then another, not so nice suprise, they deducted 10% for tax!!
I wasn't aware that I would pay tax, I have yet to validate my visa, not going till March 2004 (perhaps I should have read the small print more thoroughly)If I am liable for tax, so be it, I'm just a little suprised as i was not expecting to be taxed. So for anyone in the know, is this right?
Thanks

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Old Dec 16th 2003, 3:25 pm
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Default Re: $100,000 investment & tax on interest?

Originally posted by pudnut
Nice suprise in the mail this morning, a cheque for the interest on the $100,000 investment I put up for the extra 5 points. Then another, not so nice suprise, they deducted 10% for tax!!
I wasn't aware that I would pay tax, I have yet to validate my visa, not going till March 2004 (perhaps I should have read the small print more thoroughly)If I am liable for tax, so be it, I'm just a little suprised as i was not expecting to be taxed. So for anyone in the know, is this right?
Thanks

Pudnut...
NRT (Non Residents Tax) - 10% flat rate tax on income earned by non-residents of Australia. Whether you can claim it back I'm not sure - that's one for the experts (keeping 90% of the interest isn't bad these days though).

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Old Dec 16th 2003, 3:29 pm
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The 6 months interest is due today on our $100K Investment Bond.

Do they send it in the post to the UK?

Thought it would be paid straight into our Oz bank account. We are still in the UK. Therefore, what use is a cheque in AUS$ while in the UK.

Also, what happens at the end of the 12 months? Where will they send it, UK or Oz?

We will be living in Oz come March 04.

Cheers

Lee
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Old Dec 16th 2003, 3:39 pm
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Originally posted by leejo
The 6 months interest is due today on our $100K Investment Bond.

Do they send it in the post to the UK?

Thought it would be paid straight into our Oz bank account. We are still in the UK. Therefore, what use is a cheque in AUS$ while in the UK.

Also, what happens at the end of the 12 months? Where will they send it, UK or Oz?

We will be living in Oz come March 04.

Cheers

Lee
you can chose to either have it sent to you by cheque, or have it paid straight into an account. we choose to have a cheque sent to us and it arrived here in the UK today. We are putting it into our Oz back account that we have opened here. When the 12 months are up, again you choose to have a cheque sent or paid into bank account.

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Old Dec 16th 2003, 3:46 pm
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Originally posted by pudnut
you can chose to either have it sent to you by cheque, or have it paid straight into an account. we choose to have a cheque sent to us and it arrived here in the UK today. We are putting it into our Oz back account that we have opened here. When the 12 months are up, again you choose to have a cheque sent or paid into bank account.

Pudnut...
Can't remember!

But, was it on the application form you send with the money to your chosen State Treasury?

Or do I have to contact them at each 6 month interval?

Cheers

Lee
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Old Dec 16th 2003, 3:51 pm
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Originally posted by leejo
Can't remember!

But, was it on the application form you send with the money to your chosen State Treasury?

Or do I have to contact them at each 6 month interval?

Cheers

Lee
Lee, you would have ticked a box on the investment application form, no need to contact them at all unless with a change of address.
When are you off? and where abouts?

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Old Dec 16th 2003, 4:18 pm
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Originally posted by pudnut
Lee, you would have ticked a box on the investment application form, no need to contact them at all unless with a change of address.
When are you off? and where abouts?

Pudnut...
We're flying to Hong Kong on 30th March, for a couple of days. Then onto Cairns.

We are looking at settling in Cairns.

Where are you going?

Cheers

Lee
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Old Dec 16th 2003, 4:39 pm
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Once you get to OZ and get your tax file number, then you tell the authority and they won't deduct the 10% tax. You'll have to declare the interest on your tax return though

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Old Dec 16th 2003, 5:09 pm
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Originally posted by leejo
We're flying to Hong Kong on 30th March, for a couple of days. Then onto Cairns.

We are looking at settling in Cairns.

Where are you going?

Cheers

Lee
Wow!! Also flying out on the 30th March!!!
But going straight to Perth
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Old Dec 16th 2003, 5:18 pm
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Originally posted by JaneandJim
Once you get to OZ and get your tax file number, then you tell the authority and they won't deduct the 10% tax. You'll have to declare the interest on your tax return though

Jane
Cheers for that. Looks like I'll be paying some tax on the 2nd interest installment too!!

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Old Dec 16th 2003, 5:22 pm
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Originally posted by pudnut
Cheers for that. Looks like I'll be paying some tax on the 2nd interest installment too!!

Pudnut...
At your highest rate:scared:

Same as us. We go in less than three weeks.:scared:
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Old Dec 16th 2003, 5:25 pm
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Originally posted by pudnut
Wow!! Also flying out on the 30th March!!!
But going straight to Perth
Pudnut...
Pudnut

Where flying out of Heathrow, on Cathay Pacific. What about you?

Cheers

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Old Dec 16th 2003, 5:26 pm
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Default Re: $100,000 investment & tax on interest?

Sorry to be the bearer of bad tidings, but depending on your UK personal tax position you may also have to pay tax on this interest in the UK.

Example: assume the interest is A$2,000 (gross), which equates to about £850.

If you are paying tax in the UK at 22% your liability on this interest income is £850 x 22%, or £187. You have already suffered 10% tax (£85), so there is a balance of £102 to pay to the Inland Revenue.

Best regards.



Originally posted by pudnut
Nice suprise in the mail this morning, a cheque for the interest on the $100,000 investment I put up for the extra 5 points. Then another, not so nice suprise, they deducted 10% for tax!!
I wasn't aware that I would pay tax, I have yet to validate my visa, not going till March 2004 (perhaps I should have read the small print more thoroughly)If I am liable for tax, so be it, I'm just a little suprised as i was not expecting to be taxed. So for anyone in the know, is this right?
Thanks

Pudnut...
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Old Dec 16th 2003, 5:32 pm
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Originally posted by leejo
Pudnut

Where flying out of Heathrow, on Cathay Pacific. What about you?

Cheers

Lee
Yeah, also flying out of Heathrow, but with Singapore, Midday flight.
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Old Dec 16th 2003, 5:35 pm
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Default Re: $100,000 investment & tax on interest?

Originally posted by Alan Collett
Sorry to be the bearer of bad tidings, but depending on your UK personal tax position you may also have to pay tax on this interest in the UK.

Example: assume the interest is A$2,000 (gross), which equates to about £850.

If you are paying tax in the UK at 22% your liability on this interest income is £850 x 22%, or £187. You have already suffered 10% tax (£85), so there is a balance of £102 to pay to the Inland Revenue.

Best regards.
Thanks for that Alan, you've made my day!!
so I get to pay double tax, YIPPY!!
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