AJCS

Cos they have lost out thats why. They asked us as well.

Say you changed £10,000 you would get $26,000 at 2.4 they would only need to give you $24,000 for the same £10,000 so they have lost $2000 at that rate.

louie

Interesting. Why would anyone agree to do that? They must have been offering some incentive surely?

AJCS

no incentives.

They were going on about the volatile market etc and if we were worried abount not having the funds to transfer if we didnt sell our house and were giving people a chance to opt out with no penalty. obviously trying to make some of their money back.

MTPockets

If you got in at 2.6 the 'incentive' is that you would be up 8% on your original money if they closed it out at 2.4 [10k x ((2.6 - 2.4)/2.4) = £833] so if the rate went anywhere over the new 2.4 level agreed, converting the new pot of £10,800 you would be up on your orginal $26,000 (e.g. 10.83k x 2.41 - $26,108...etc...). But that would have been a bet on the rate recovering so depends if you were up for taking a gamble.

Peatbog Faerie

Wasnt a tax bill as such at the end of the financial year at tax return time you have to pay tax on any interest you accrue on monies deposited in aussie bank account which SUCKS!
You cant make it up either as the tax dept can access your details via the bank on a central computer system, also had to pay tax on monies accrued in UK renting property out!:curse:

steve_kelly_and_boys

hi
can anyone tell me how much tax do you pay on your savings over there , and do they tax it monthly or do you settle up at the end of the year

flodsfive

Hi,
if you are based offshore then tax is automatically taken off at source by the bank on your monthly interest earned.

eg earn $1000 per month
$900 will be deposited in your account $100 to tax man

at least that's how it works for us in our westpac account.

DrWho

When you get here make sure you give your TFN to the bank and then you'll get it all gross... settle up when you do your annual tax return... Doing tax returns here seems to be much more prevalent than in the UK... all my employees do them and seem to claim huge amounts back... lucky them...

tawkins1

Can you apply for a TFN number before you arrive in Auz? Would there be any point in doing this?

louie

If you mean in order to get your interest without the 10% withholding tax taken off then no, because the 10% is taken off because you are non-resident, not because you don't have a TFN.

Also any Oz interest you earn before you become resident is not taxable in Oz. It would be taxable in the UK (if you are UK resident!) but depending on your marginal tax rates in Oz and the UK, you might actually be better off (in terms of tax on the interest) before you become resident in Oz.

DrWho

No... but if you could it would be worth it...

vanessandave

You can apply for a TFN online before you arrive in Oz, but only if you have already got one of the following visa's;

a valid permanent migrant visa, or
a valid visa with work rights, or
a valid overseas student visa, or
a valid visa allowing you to stay in Australia indefinitely.


Go to;
https://iar.ato.gov.au/iarweb/defaul...id=1&outcome=1

DrWho

Umm... the bit you missed from that link...

"You can apply for a tax file number (TFN) online only if you are currently in Australia and you have:"

lilsweets

I got my TFN number offshore a couple of years ago using the same link. Has it changed recently?

vanessandave

I don't know why it says that because I got mine already from the UK, ANZ bank advised me to do it so they don't tax my savings at the highest rate.