1.76 Whats happened to Exchange Rate????? Ouch
Feb 19th 2010, 10:22 pm
#106
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: 1.76 Whats happened to Exchange Rate????? Ouch
Overnight I got a oz forex alert that its reached 58 p thats 1.71 if your playing for the other team.
Think that might be a new low.
Think that might be a new low.
Feb 19th 2010, 10:33 pm
#107
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Re: 1.76 Whats happened to Exchange Rate????? Ouch
Hi
A new low based on what?
A new low based on what?
Feb 19th 2010, 10:42 pm
#108
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Feb 19th 2010, 11:07 pm
#109
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Joined: Dec 2006
Location: Mt Martha, Melbourne
Posts: 1,199
Re: 1.76 Whats happened to Exchange Rate????? Ouch
Hi
Just be aware of coming into Oz on a low exchange rate and then sitting on your money until it improves as I think you can get capital gains tax on it.
I find all this stuff very confusing so check it out with someone who knows but as you all say the ATO is far more into everything than the UK taxman.
On another interesting note, I was reading that the UK is tightning up on ex-pats and tax saying if you still have a reasonable amount of interest in the UK i.e.property, bank accounts, business, kids at bording school etc they are going to start taxing you even if you are not in the country for more than the 90 limit. They are chasing some guy who's lived in the Seychelles or something for the last 30 years but still has business in the UK - I guess the Government have to claw back some the deficit anyway they can! Although the good thing is here is that there is a tax agreement between the UK and Oz so hopefully it would be okay.
KK
Just be aware of coming into Oz on a low exchange rate and then sitting on your money until it improves as I think you can get capital gains tax on it.
I find all this stuff very confusing so check it out with someone who knows but as you all say the ATO is far more into everything than the UK taxman.
On another interesting note, I was reading that the UK is tightning up on ex-pats and tax saying if you still have a reasonable amount of interest in the UK i.e.property, bank accounts, business, kids at bording school etc they are going to start taxing you even if you are not in the country for more than the 90 limit. They are chasing some guy who's lived in the Seychelles or something for the last 30 years but still has business in the UK - I guess the Government have to claw back some the deficit anyway they can! Although the good thing is here is that there is a tax agreement between the UK and Oz so hopefully it would be okay.
KK
Feb 19th 2010, 11:33 pm
#110
Recession Surfing 2006 ->
Joined: Sep 2007
Location: Northern Edge of Melbourne
Posts: 1,254
Re: 1.76 Whats happened to Exchange Rate????? Ouch
So how is this worked out ? As if you left cash in the UK in October 2008 at 2.7
Its now at 1.7. If you bring in this cash you have earned -1.00 so How could they justify CGT?
Feb 19th 2010, 11:56 pm
#111
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Location: Mt Martha, Melbourne
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Re: 1.76 Whats happened to Exchange Rate????? Ouch
It's done on the rate which you entered Australia as PR so if you validate or enter now and it goes up you might be taxed.
If you entered when it was 2.50 then I don't think you have any worries!
If you entered when it was 2.50 then I don't think you have any worries!
Feb 20th 2010, 2:08 am
#112
Recession Surfing 2006 ->
Joined: Sep 2007
Location: Northern Edge of Melbourne
Posts: 1,254
Re: 1.76 Whats happened to Exchange Rate????? Ouch
I dont suppose you have any idea what the story is with selling a UK house in the future and bringing in the proceeds from sale?
Feb 20th 2010, 2:55 am
#113
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Re: 1.76 Whats happened to Exchange Rate????? Ouch
The fact is nothing out of the ordinary has happened to the exchange rate.
We are directly affected as part of our income still comes from the UK. We arrived in 2006 and averaged about 2.4 $ to the pound on our early transaction so this became our bench mark. Our last exchange was 1.72 which feels painful.
A few historical rates
June 1974 1.608 au $ to the pound
Oct 1976 1.28
Dec 1984 1.402
Oct 1998 2.94
Dec 2009 1.8
These dates obviously picked for their extremes and apart from the last one are a long time ago. If it has been as low as 1.28 before then there is no reason for it not to happen again.
It does look bad if the UK finacial sector is in discrace and if things do get worse it will come to the point where it is not worth my while working from here for UK pounds if they buy less and less in Australia.
I got the figures from www.ecomagic.com so you can check for yourself. The Australian ATO also has historical rates but could not get on the site for some reason.
We are directly affected as part of our income still comes from the UK. We arrived in 2006 and averaged about 2.4 $ to the pound on our early transaction so this became our bench mark. Our last exchange was 1.72 which feels painful.
A few historical rates
June 1974 1.608 au $ to the pound
Oct 1976 1.28
Dec 1984 1.402
Oct 1998 2.94
Dec 2009 1.8
These dates obviously picked for their extremes and apart from the last one are a long time ago. If it has been as low as 1.28 before then there is no reason for it not to happen again.
It does look bad if the UK finacial sector is in discrace and if things do get worse it will come to the point where it is not worth my while working from here for UK pounds if they buy less and less in Australia.
I got the figures from www.ecomagic.com so you can check for yourself. The Australian ATO also has historical rates but could not get on the site for some reason.
The website regarding historical rates is www.economagic.com not whats written in my post
Feb 20th 2010, 4:49 am
#114
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Re: 1.76 Whats happened to Exchange Rate????? Ouch
It has peaked at 1.38 in dec 1985 (ouch )
http://www.vcaa.vic.edu.au/vce/studi...changerate.xls
It was effectively floated in 1983 so any variations before that are not
realistically comparable
http://www.vcaa.vic.edu.au/vce/studi...changerate.xls
It was effectively floated in 1983 so any variations before that are not
realistically comparable
Feb 20th 2010, 6:08 am
#115
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 15,526
Re: 1.76 Whats happened to Exchange Rate????? Ouch
It has peaked at 1.38 in dec 1985 (ouch )
www.vcaa.vic.edu.au/vce/studies/mathematics/further/exchangerate.xls
It was effectively floated in 1983 so any variations before that are not
realistically comparable
www.vcaa.vic.edu.au/vce/studies/mathematics/further/exchangerate.xls
It was effectively floated in 1983 so any variations before that are not
realistically comparable
Hmmm makes no rhyme or reason to me those figures.... I've been here since 1980 and in 1983/84 we had the worst drought on record.... uptil that point. Farmers were basically killing all their livestock, you could buy sides of lamb for about 8 dollars.
1998 was well after the recession that Australia had to have, circa 1995/96 and should have been well on the road to recovery.
Also 1974 I was working in the UK and received a bonus of 33pct of annual salary as our shipbroking company did a deal of exporting the largest shipment of coal they had ever accomlished over the next 10 years from Brazil to China and the company made heaps. The City of London was really going gang busters at that stage and people were earning a fortune in relative terms.... I worked with young blokes that owned their own planes or had yachts. Well after the time of Poseidon so that shouldnt have been a factor in Australias favour.
So from a personal point of view cant make sense of it.
Still just shows that it's recent times of strong sterling that seem to have been the anomoly.
Feb 20th 2010, 7:56 am
#116
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Posts: 838
Re: 1.76 Whats happened to Exchange Rate????? Ouch
Hmmm makes no rhyme or reason to me those figures.... I've been here since 1980 and in 1983/84 we had the worst drought on record.... uptil that point. Farmers were basically killing all their livestock, you could buy sides of lamb for about 8 dollars.
1998 was well after the recession that Australia had to have, circa 1995/96 and should have been well on the road to recovery.
So from a personal point of view cant make sense of it.
Still just shows that it's recent times of strong sterling that seem to have been the anomoly.
1998 was well after the recession that Australia had to have, circa 1995/96 and should have been well on the road to recovery.
So from a personal point of view cant make sense of it.
Still just shows that it's recent times of strong sterling that seem to have been the anomoly.
We paid between 17% and 22% (and survived )
http://www.loansense.com.au/historical-rates.html
Feb 20th 2010, 9:14 am
#117
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: 1.76 Whats happened to Exchange Rate????? Ouch
Hi
Just be aware of coming into Oz on a low exchange rate and then sitting on your money until it improves as I think you can get capital gains tax on it.
I find all this stuff very confusing so check it out with someone who knows but as you all say the ATO is far more into everything than the UK taxman.
On another interesting note, I was reading that the UK is tightning up on ex-pats and tax saying if you still have a reasonable amount of interest in the UK i.e.property, bank accounts, business, kids at bording school etc they are going to start taxing you even if you are not in the country for more than the 90 limit. They are chasing some guy who's lived in the Seychelles or something for the last 30 years but still has business in the UK - I guess the Government have to claw back some the deficit anyway they can! Although the good thing is here is that there is a tax agreement between the UK and Oz so hopefully it would be okay.
KK
Just be aware of coming into Oz on a low exchange rate and then sitting on your money until it improves as I think you can get capital gains tax on it.
I find all this stuff very confusing so check it out with someone who knows but as you all say the ATO is far more into everything than the UK taxman.
On another interesting note, I was reading that the UK is tightning up on ex-pats and tax saying if you still have a reasonable amount of interest in the UK i.e.property, bank accounts, business, kids at bording school etc they are going to start taxing you even if you are not in the country for more than the 90 limit. They are chasing some guy who's lived in the Seychelles or something for the last 30 years but still has business in the UK - I guess the Government have to claw back some the deficit anyway they can! Although the good thing is here is that there is a tax agreement between the UK and Oz so hopefully it would be okay.
KK
As for Mr Gaines-Cooper, the issue with him is that he never really left the UK in the first place, in that he kept a home and a lot of personal assets in the UK, including for some of the time a wife and child. He didn't sever his ties to the UK. All of you folks living and working in Australia, with no UK home available to you and with your home and family in Australia will not be affected by this ruling.
