budababes

We are in the process of completing our Tax Returns but are somewhat perplexed. We arrived here as permanent residents in January and have purchased a property here. We still have a few ISAs and a couple of Tessa A/c in the U.K. and are confused re the taxation position in Oz. Does anyone know whether we have to pay tax in Australia on the interest earned on these accounts? If so would that only be for interest earned in this financial year i.e. since we arrived in January til end of June?

Would be grateful for any advice or comments.

Thanks

Linda

wongstonn

I think you will have to declare them and pay tax (though I woud wonder how many people actually do declare them). The Aussie tax return form expects you to declare any income or interest earned regardless of the country where the money is.

Best thing is to check on the ATO website:

www.ato.com.au

I think it was Benjamin Franklin who said 'Only two things in life are certain: death and taxes.'

Neil

esperanza

Yes you do have to pay tax on any income from those accounts, making the ISA fairly pointless- especially as rates are higher here (Australia) anyway.
Only any point keeping an ISA if you expect to be back in the UK one day and it would take you a long time to get that money back in to the ISA wrapper.