Changing your £'s to AU$'s - Immigration rules
Jul 27th 2004, 10:13 am
#1
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Changing your £'s to AU$'s - Immigration rules
Hi all,
Well after 2 weeks and 2 viewings we have a buyer for our house!.
My question is:
Can you postpone the transfer of £'s to $'s, or do you have to have it tranferred by the time you enter the country?.
Id like to keep the house money in £'s until the exchange rate improves a bit more. Can I do this?
Thanks in advance,
65KK
Well after 2 weeks and 2 viewings we have a buyer for our house!.
My question is:
Can you postpone the transfer of £'s to $'s, or do you have to have it tranferred by the time you enter the country?.
Id like to keep the house money in £'s until the exchange rate improves a bit more. Can I do this?
Thanks in advance,
65KK
Jul 27th 2004, 10:38 am
#2
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Joined: Jul 2004
Location: brisbane
Posts: 40
HI,
U CAN WAIT UNTIL U ARRIVE AND THEN CHANGE YOUR MONEY, THATS WHAT WE DID. WE ARRIVED AND SET UP A BANK ACCOUNT AND THEN WENT THROUGH AN EXCAHNGE COMPANY WHO THEN GOT US THE BEST DEAL FOR OUR £ TO $. IF YOU CAN AFFORD TO HANG ON IT IS WORTH IT IF U ARE CHANGING ALOT OF MONEY. NOT SURE WHAT U ARE GETTING AT THE MOMENT IS IT ABOUT 2.50? IT WAS ABOUT THE SAME THIS TIME LAST YEAR, THEN DROPPED AT ONE POINT TO 2.2, SO ITS REALLY A CHANCE WHETHER TO WAIT OR NOT.
I KNOW THE $ TO THE £ IS DREADFUL AT THE MOMENT, SO I WONT BE GOING HOME FOR A VISIT, WOULD BANKRUPT US!!!
CATRINA
U CAN WAIT UNTIL U ARRIVE AND THEN CHANGE YOUR MONEY, THATS WHAT WE DID. WE ARRIVED AND SET UP A BANK ACCOUNT AND THEN WENT THROUGH AN EXCAHNGE COMPANY WHO THEN GOT US THE BEST DEAL FOR OUR £ TO $. IF YOU CAN AFFORD TO HANG ON IT IS WORTH IT IF U ARE CHANGING ALOT OF MONEY. NOT SURE WHAT U ARE GETTING AT THE MOMENT IS IT ABOUT 2.50? IT WAS ABOUT THE SAME THIS TIME LAST YEAR, THEN DROPPED AT ONE POINT TO 2.2, SO ITS REALLY A CHANCE WHETHER TO WAIT OR NOT.
I KNOW THE $ TO THE £ IS DREADFUL AT THE MOMENT, SO I WONT BE GOING HOME FOR A VISIT, WOULD BANKRUPT US!!!
CATRINA
Jul 27th 2004, 10:59 am
#3
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Hi Catrina,
Thanks for your reply. Yes It seems to be hanging around the 2.50 mark at the moment. The UK is expecting a couple of interest rate rises by the end of this year which should work in our favour, so would like to leave the exchange later rather than sooner.
Does anyone know if you can leave your money unchanged, say for upto 3 months or more without incurring any taxes or charges by the aussie government?.
Thanks for your reply. Yes It seems to be hanging around the 2.50 mark at the moment. The UK is expecting a couple of interest rate rises by the end of this year which should work in our favour, so would like to leave the exchange later rather than sooner.
Does anyone know if you can leave your money unchanged, say for upto 3 months or more without incurring any taxes or charges by the aussie government?.
Jul 27th 2004, 11:04 am
#4
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Posts: 34,649
Re: Changing your £'s to AU$'s - Immigration rules
There is no immigration obligation to transfer funds.
You are asked what you 'intend' to bring, and should have enough funds to substantiate that if asked, but if you choose to leave your funds in the UK it's up to you.
Jeremy
You are asked what you 'intend' to bring, and should have enough funds to substantiate that if asked, but if you choose to leave your funds in the UK it's up to you.
Jeremy
Originally posted by 65 million
Hi all,
Well after 2 weeks and 2 viewings we have a buyer for our house!.
My question is:
Can you postpone the transfer of £'s to $'s, or do you have to have it tranferred by the time you enter the country?.
Id like to keep the house money in £'s until the exchange rate improves a bit more. Can I do this?
Thanks in advance,
65KK
Hi all,
Well after 2 weeks and 2 viewings we have a buyer for our house!.
My question is:
Can you postpone the transfer of £'s to $'s, or do you have to have it tranferred by the time you enter the country?.
Id like to keep the house money in £'s until the exchange rate improves a bit more. Can I do this?
Thanks in advance,
65KK
Jul 27th 2004, 11:13 am
#5
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Joined: Oct 2003
Location: Coogee, Sydney
Posts: 1,017
Originally posted by 65 million
Hi Catrina,
Thanks for your reply. Yes It seems to be hanging around the 2.50 mark at the moment. The UK is expecting a couple of interest rate rises by the end of this year which should work in our favour, so would like to leave the exchange later rather than sooner.
Does anyone know if you can leave your money unchanged, say for upto 3 months or more without incurring any taxes or charges by the aussie government?.
Hi Catrina,
Thanks for your reply. Yes It seems to be hanging around the 2.50 mark at the moment. The UK is expecting a couple of interest rate rises by the end of this year which should work in our favour, so would like to leave the exchange later rather than sooner.
Does anyone know if you can leave your money unchanged, say for upto 3 months or more without incurring any taxes or charges by the aussie government?.
http://www.gomatilda.com.au/news/art...?articleid=302
Jul 27th 2004, 11:13 am
#6
Forum Regular
Joined: Sep 2003
Location: Bayside Brisbane
Posts: 279
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
Jul 27th 2004, 11:27 am
#7
Joined: Feb 2004
Posts: 1,277
Hello 65M
It seems to be difficult to get hold of information on this but this is what I have got so far. I am not an advisor so please don't hold me accountable for anything written here. Also I've not been here long enough to do a tax return yet.
The ATO can tax any gain on the money from the time that you become PR and the time that you change the money. I have asked a few people/advisers and the general consensus is that that there is no 'grace' period.
I did worry about this a bit before leaving but in the end I consoled myself with the thought that any gain that you get is a bonus (even if it gets taxed). I know its hard to give money to the tax man, but PAYE didn't stop me from working.
Finally, there is talk of an interest rate hike here, though personally, I don't think it will happen unless the US starts hiking their rate.
Hope this helps.
Alistair
It seems to be difficult to get hold of information on this but this is what I have got so far. I am not an advisor so please don't hold me accountable for anything written here. Also I've not been here long enough to do a tax return yet.
The ATO can tax any gain on the money from the time that you become PR and the time that you change the money. I have asked a few people/advisers and the general consensus is that that there is no 'grace' period.
I did worry about this a bit before leaving but in the end I consoled myself with the thought that any gain that you get is a bonus (even if it gets taxed). I know its hard to give money to the tax man, but PAYE didn't stop me from working.
Finally, there is talk of an interest rate hike here, though personally, I don't think it will happen unless the US starts hiking their rate.
Hope this helps.
Alistair
Jul 27th 2004, 12:55 pm
#8
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Joined: May 2004
Location: Cambridge
Posts: 116
As to whether the rates will go down or up, you are taking a risk whatever you do. The markets think that there will be rates rises in the Uk later this year, probably starting next month, but these should not make a big difference to the exchange rate as they will already have been priced into the current rates. It is when the outlook for UK/Oz changes that there will be a change in exchange rate.
The recent big rise from 2.4-2.65ish came about when Oz said they were not looking at raising rates for a while, this was a change in what was expected, hence the rise.
As to ATO implications I will leave that to those with better knowledge than me
Alastair
The recent big rise from 2.4-2.65ish came about when Oz said they were not looking at raising rates for a while, this was a change in what was expected, hence the rise.
As to ATO implications I will leave that to those with better knowledge than me
Alastair
Jul 27th 2004, 11:49 pm
#9
Retired
Joined: Apr 2004
Posts: 34,649
Looks to me like you may be confused between capital gains tax (CGT) and Foreign Investment Fund (FIF) taxation.
Alan Collett will correct me if I'm wrong, but I understand that FIF does not apply to holdings of foreign currency.
CGT can do, but that's a different question.
There are also new income tax rules on gains and losses on foreign (non AUD) currencies, but these are intended for larger corporations and I got the impression the ATO are not interested in doing lots of complex calculations to find out whether you have some assessable gains (or losses) on small accounts overseas.
Jeremy
Alan Collett will correct me if I'm wrong, but I understand that FIF does not apply to holdings of foreign currency.
CGT can do, but that's a different question.
There are also new income tax rules on gains and losses on foreign (non AUD) currencies, but these are intended for larger corporations and I got the impression the ATO are not interested in doing lots of complex calculations to find out whether you have some assessable gains (or losses) on small accounts overseas.
Jeremy
Originally posted by Sharpy67
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
Jul 28th 2004, 12:27 am
#10
Forum Regular
Joined: Nov 2003
Location: London, UK
Posts: 274
Originally posted by Sharpy67
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
Regards
ST
Jul 28th 2004, 1:19 am
#11
I'm lovin' it
Joined: Feb 2003
Location: Brisbane
Posts: 1,525
Originally posted by Sharpy67
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
Is 6 months the time limit then? So I could bring in money 5 months and three weeks after arrival and be ok then.
Clarification by anyone would be greatly appreciated.
Jul 28th 2004, 2:18 am
#12
Forum Regular
Joined: Nov 2003
Location: London, UK
Posts: 274
Originally posted by chippy
The part where you say, "say 6 months...."
Is 6 months the time limit then? So I could bring in money 5 months and three weeks after arrival and be ok then.
Clarification by anyone would be greatly appreciated.
The part where you say, "say 6 months...."
Is 6 months the time limit then? So I could bring in money 5 months and three weeks after arrival and be ok then.
Clarification by anyone would be greatly appreciated.
Jul 28th 2004, 2:44 am
#13
Drunken Aussie
Joined: Jun 2003
Location: Brisvegas
Posts: 1,080
but how do they police this? what happens if you trickle your money into the country? bring it over in less than A$10,000 chunks (you don't have to declare less than $10,000)??
--------------------------------------------------------------------------------
Originally posted by Sharpy67
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
--------------------------------------------------------------------------------
I am in the same situation and recenlty paid a good Australian tax advisor for advice on this. He has told me exactly what you have stated here - he has reconfirmed recently that this is definitely the case.
Regards
ST
Originally posted by Sharpy67
The way I understood it was........if you brought your money over, say, 6 months after you had arrived in Australia, any difference in the exchange rate between (1) when you entered Australia and (2) when you transferred your money will incur tax.
example
enter Australia, ex rate 2.5
£100,000 to bring over
ex rate offered when you decide to change currency 2.7 (for examples sake)
I understand that the difference between the two will show the following
£100000 x 2.7 = $A270000
When you entered Australia, had you brought your money over then
£100000 x 2.5 = $A250000
ATO see the difference of $A20000 as tax accessable gain and will tax you on it. If your salary for the year takes you into the top bracket, that $A20000 will get hit at 47%
Thats the way I understand.
Not probably what you want to here.
Nick
--------------------------------------------------------------------------------
I am in the same situation and recenlty paid a good Australian tax advisor for advice on this. He has told me exactly what you have stated here - he has reconfirmed recently that this is definitely the case.
Regards
ST
Jul 28th 2004, 4:51 am
#14
I'm lovin' it
Joined: Feb 2003
Location: Brisbane
Posts: 1,525
Originally posted by swiss tony
don't think there is a time limit....
don't think there is a time limit....
Re-reading JAJ's comments (who normally talks a lot of sense) it seems we are all worrying about nothing here anyway. ATO can't be bothered pissing about with us lot, they're after the big boys...
Is that basically what you are saying JAJ ??
Jul 28th 2004, 5:39 am
#15
Forum Regular
Joined: Nov 2003
Location: London, UK
Posts: 274
Originally posted by chippy
Well surely there must be. Unless it's, "you bring in what you arrive with, and that's your lot (as far as non-taxable funds are concerned).
Well surely there must be. Unless it's, "you bring in what you arrive with, and that's your lot (as far as non-taxable funds are concerned).
I'm just going on what I was told by a professional tax advisor who works for a large firm of accountants in Sydney.
I am no expert on this hence my paying a pro for advice - maybe JAJ knows better than the tax advisor I paid good money for! If so more fool me for not getting the advice free off of this board!
Regards
ST