any equivalent to uk isa in oz?
#1
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Joined: Feb 2007
Posts: 39
any equivalent to uk isa in oz?
I have an ISA and trying to decide whether or not to keep it in the uk.
What have others done?
Is there an equivalent to the uk isa in oz or any other tax free savings a/cs anyone knows of?
Many thanks
What have others done?
Is there an equivalent to the uk isa in oz or any other tax free savings a/cs anyone knows of?
Many thanks
#2
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Joined: Dec 2005
Location: Here - There - Everywhere! (Solihull at mo tho :))
Posts: 257
Re: any equivalent to uk isa in oz?
I could do with the answer to this one to!
Chris.
Chris.
#3
Re: any equivalent to uk isa in oz?
You've asked on the wrong forum, incidentally (this forum is for immigration questions, so you won't get many responses). Short answer is no, and your UK ISA will be taxable in Australia.
#4
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Re: any equivalent to uk isa in oz?
sorry for asking in wrong forum and thanks for reply
#5
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#6
Re: any equivalent to uk isa in oz?
I have the same issue with my ISA - it's quite healthy, with several years' allowance in it. I don't want to move it at the moment, as our move to Oz is new and if we end up back in the UK I would want my ISA.
But is is annoying that the whole point of the ISA is that it's tax-free, but the aussie govt will tax you on the interest anyway!
In the short term, it makes more sense to have the money here (in Aus) where the interest rates are higher. But then they will tax you on the interest. But then if you are honest you will also get taxed on the lower rate of interest on your UK ISA. It sucks!
Basically I think if you are going to want the money in Australia, or if you have made a decision to definitely not go back to the UK, then there is no point in keeping an ISA. Financially it makes no sense - unless you want to keep open the option of returning to the UK and having your money in a great tax-free wrapper. Whilst you're in Australia, an ISA is not the best place to have your money.
Once I've done some research I will probably move my ISA money to a high interest account here in Australia - once I've paid tax on it, it probably won't be all that different to getting a lower rate tax-free in the UK. And if I can get a good exchange rate (and I won't move the money at a bad rate) then I might even make money in the future by changing it back at an advantageous rate.
It's complicated though, no doubt about that!!
But is is annoying that the whole point of the ISA is that it's tax-free, but the aussie govt will tax you on the interest anyway!
In the short term, it makes more sense to have the money here (in Aus) where the interest rates are higher. But then they will tax you on the interest. But then if you are honest you will also get taxed on the lower rate of interest on your UK ISA. It sucks!
Basically I think if you are going to want the money in Australia, or if you have made a decision to definitely not go back to the UK, then there is no point in keeping an ISA. Financially it makes no sense - unless you want to keep open the option of returning to the UK and having your money in a great tax-free wrapper. Whilst you're in Australia, an ISA is not the best place to have your money.
Once I've done some research I will probably move my ISA money to a high interest account here in Australia - once I've paid tax on it, it probably won't be all that different to getting a lower rate tax-free in the UK. And if I can get a good exchange rate (and I won't move the money at a bad rate) then I might even make money in the future by changing it back at an advantageous rate.
It's complicated though, no doubt about that!!
#7
Re: any equivalent to uk isa in oz?
Yep I agree. As soon as exchange rates start to look a bit better my ISA will be winging its way over to aus too
#8
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Joined: Dec 2003
Location: Adelaide - South Australia
Posts: 1,820
Re: any equivalent to uk isa in oz?
I don't understand why you say it's annoying as the whole point of an ISA is that it's tax free. Well yes - it is tax free for a UK resident - but you're making the choice to be in Oz where you have to abide by different rules.
#9
Re: any equivalent to uk isa in oz?
Aren't I allowed to be annoyed by having to pay tax?! Sorry if it offends your sensibilities, but I reserve my right to be annoyed!
#10
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Joined: Jan 2006
Posts: 413
Re: any equivalent to uk isa in oz?
The growth on it is taxed at 15%,but dividend imputation (company tax paid by franked shares) virtually wipes out any tax on it,depending on the asset mix ,it can produce a tax rebate for your super fund.
At age 60 it can be drawn out tax free,at age 55 you can draw out approx $145,000 tax free.
They change the rules regularly.
Try putting insurance bonds into google,I think they are tax free after 10 yrs but not sure,everything is geared towards the super system.
#11
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Joined: Feb 2007
Posts: 39
Re: any equivalent to uk isa in oz?
jaj - i need your wisdom again pse (or anyone else)
if my oh entering oz on a 461 and i am a non-eligible nz'er would the temporary visa tax laws apply to me as well as oh and therefore better for us to maintain isas in uk?
many thanks
if my oh entering oz on a 461 and i am a non-eligible nz'er would the temporary visa tax laws apply to me as well as oh and therefore better for us to maintain isas in uk?
many thanks