exchange rates
Oct 6th 2004, 2:18 pm
#31
She's a bird, you know
Joined: Jul 2003
Location: Yorkshire
Posts: 7,655
Re: exchange rates
Originally Posted by OzTennis
Bundy
We have an account in Williamstown with the Commonwealth Bank and we currently live in Scotland. The interest on our Commonwealth account has 10% NRWT (non-resident witholding tax) deducted at source - so we are credited with 90% of the interest. At the moment we get 5.35% gross interest and 4.815% net interest. A NR is one with an overseas address - perhaps if you have an Aussie address this is where your 47% tax comes in?
BTW don't anyone tell ATO if our bank are doing the wrong thing presently!
OzTennis
We have an account in Williamstown with the Commonwealth Bank and we currently live in Scotland. The interest on our Commonwealth account has 10% NRWT (non-resident witholding tax) deducted at source - so we are credited with 90% of the interest. At the moment we get 5.35% gross interest and 4.815% net interest. A NR is one with an overseas address - perhaps if you have an Aussie address this is where your 47% tax comes in?
BTW don't anyone tell ATO if our bank are doing the wrong thing presently!
OzTennis
They did say that had we not mentioned that I was a non-res, they wouldn't have questionned it
Mr B still has his permanent address at his dad's in Oz (his address as far as the bank is concerned). And I still have my TFN, in theory. Might contact the bank to ask about this.....
BTW - ETA is a 3 month tourist visa. When I had a working holiday visa I held a bank account and wasn't charged any abnormal taxes (just the usual list of fees and charges
)
Oct 6th 2004, 2:27 pm
#32
Forum Regular
Joined: Aug 2004
Location: Birmingham
Posts: 104
Re: exchange rates
Originally Posted by bundy
I think I might have the info at home....I'll see if I can find it and post back later.
All I know is that our joint account would have been taxed at the high rate despite Mr B being an aussie whereas we don't get taxed for having me as a named person on his account despite me not being an aussie (yet )
All I know is that our joint account would have been taxed at the high rate despite Mr B being an aussie whereas we don't get taxed for having me as a named person on his account despite me not being an aussie (yet
)No need to dig the info out! - had a reply from Polyanna on a seperate thread saying she opened an account on an ETA in simialr circumstances to mine - thanks for the offer now. Now need to go and have a lie down to try and make sense of the tax implications
Thanks for your time!
Oct 6th 2004, 2:31 pm
#33
Lost in BE Cyberspace
Joined: Nov 2003
Location: Scotland
Posts: 7,949
Re: exchange rates
Originally Posted by kirsty&al
Ooh...this is becoming a little complicated now. I'm not sure what an ETA is. Is it a working visa?
Hopefully this will answer your question.
If you are a tax resident in the UK and you move your money into AUD then you will not be hit with any CGT when you get to Oz. In theory, for the purposes of the ATO, all of your assets are notionally converted to AUD on the day that you arrive. Any real AUD you have at the point will still be the same number of AUD when you come to the end of the tax year, so there is no gain. You can however be taxed on any interest you make. Any interest made while you are a UK tax resident will be taxed at 10% by the ATO (a witholding tax). You will also have to run this through the UK system. Any interest you earn when you become an Oz tax resident will be taxed under ATO rules. If you do not get a TFN the bank will withold 47% for tax purposes. The bank rebated my witheld tax when I sent them a TFN (the ATO will eventually get their proper slice).
I assume that if you are on a working visa and you are a tax resident you will be taxed at your marginal rate if you have a TFN and at 47% if you don't.
I'm not sure what counts as your day of arrival if you start with a working visa and then become PR. I believe that you have to leave the country to validate you PR and would assume that the return date becomes your day of arrival. Anyone out there know more about this?
Cheers
Alistair
Hopefully this will answer your question.
If you are a tax resident in the UK and you move your money into AUD then you will not be hit with any CGT when you get to Oz. In theory, for the purposes of the ATO, all of your assets are notionally converted to AUD on the day that you arrive. Any real AUD you have at the point will still be the same number of AUD when you come to the end of the tax year, so there is no gain. You can however be taxed on any interest you make. Any interest made while you are a UK tax resident will be taxed at 10% by the ATO (a witholding tax). You will also have to run this through the UK system. Any interest you earn when you become an Oz tax resident will be taxed under ATO rules. If you do not get a TFN the bank will withold 47% for tax purposes. The bank rebated my witheld tax when I sent them a TFN (the ATO will eventually get their proper slice).
I assume that if you are on a working visa and you are a tax resident you will be taxed at your marginal rate if you have a TFN and at 47% if you don't.
I'm not sure what counts as your day of arrival if you start with a working visa and then become PR. I believe that you have to leave the country to validate you PR and would assume that the return date becomes your day of arrival. Anyone out there know more about this?
Cheers
Alistair
You won't get hit with 47% tax if you don't have a TFN, you get hit with 47% if you are a non-resident. We are NR, don't have a TFN and the C'w bank takes just 10% NRWT.
On the subject of exchange rates I just dug out these actual rates that we got for some of our transfers to our C'w a/c. They might make interesting reading. Someone somewhere said sub $2.30 or $2.40 is normal for the E/R -rubbish as these figures show:
25/3/98 $2.49
17/6/98 $2.71
25/9/98 $2.86
15/1/99 $2.61
28/5/99 $2.43
29/10/99 $2.54
3/2/00 $2.49
29/9/00 $2.70
29/3/01 $2.90
27/9/01 $3.04
27/6/02 $2.68
3/3/03 $2.56
3/9/03 $2.45
23/6/04 $2.61
And the average for all our transfers since 1998? $2.64
And the rate in 1980? $1.33
OzTennis
Oct 6th 2004, 2:32 pm
#34
She's a bird, you know
Joined: Jul 2003
Location: Yorkshire
Posts: 7,655
Re: exchange rates
Originally Posted by fraze1987
Bundy,
No need to dig the info out! - had a reply from Polyanna on a seperate thread saying she opened an account on an ETA in simialr circumstances to mine - thanks for the offer now. Now need to go and have a lie down to try and make sense of the tax implications
Thanks for your time!
No need to dig the info out! - had a reply from Polyanna on a seperate thread saying she opened an account on an ETA in simialr circumstances to mine - thanks for the offer now. Now need to go and have a lie down to try and make sense of the tax implications
Thanks for your time!
I'll never understand all this stuff
But thank god I don't have to go digging about in all my visa stuff to find what I was thinking of!
Oct 6th 2004, 2:54 pm
#35
BE Enthusiast
Joined: Sep 2002
Location: Mornington, Melbourne
Posts: 419
Re: exchange rates
Maybe this article explains the pounds slide???... 
The pound rose to a month high against the dollar, tracking the dollar's slide, but continued to weaken against the euro after this morning's Nationwide house price survey for September continued to show subdued growth.
The survey showed British house prices rose just 0.2 percent from August and said activity is set to remain at lower levels over the coming months.
Growing evidence of a cooling in the housing market has caused the market to reconsider its view on the outlook for interest rates, with most seeing little scope for further hikes by the Bank of England.
The pound rose to a month high against the dollar, tracking the dollar's slide, but continued to weaken against the euro after this morning's Nationwide house price survey for September continued to show subdued growth.
The survey showed British house prices rose just 0.2 percent from August and said activity is set to remain at lower levels over the coming months.
Growing evidence of a cooling in the housing market has caused the market to reconsider its view on the outlook for interest rates, with most seeing little scope for further hikes by the Bank of England.
Originally Posted by bundy
I'll never understand all this stuff
But thank god I don't have to go digging about in all my visa stuff to find what I was thinking of!
But thank god I don't have to go digging about in all my visa stuff to find what I was thinking of!
Oct 6th 2004, 3:04 pm
#36
BE Enthusiast
Joined: Sep 2002
Location: Mornington, Melbourne
Posts: 419
Re: exchange rates
Sterling remains weak on slipping house prices
Economy News
- LONDON (AFP)
AFP/FileSterling remained weak after this morning's survey by the Royal Institute of Chartered Surveyors showed house prices slipped in August as higher interest rates take their toll.
Market participants are now awaiting tomorrow's release of the minutes from the Monetary Policy Committee's September meeting, which are expected to show that MPC members voted unanimously to leave rates unchanged.
HSBC analyst Margaret Browne said the minutes are likely to be "more dovish than hawkish", given recent comments from various MPC members suggesting they believe rates are near their peak.
Meanwhile, the Swiss Franc benefited from safe haven flows as oil prices rose sharply again on supply concerns.
Economy News
- LONDON (AFP)
AFP/FileSterling remained weak after this morning's survey by the Royal Institute of Chartered Surveyors showed house prices slipped in August as higher interest rates take their toll.
Market participants are now awaiting tomorrow's release of the minutes from the Monetary Policy Committee's September meeting, which are expected to show that MPC members voted unanimously to leave rates unchanged.
HSBC analyst Margaret Browne said the minutes are likely to be "more dovish than hawkish", given recent comments from various MPC members suggesting they believe rates are near their peak.
Meanwhile, the Swiss Franc benefited from safe haven flows as oil prices rose sharply again on supply concerns.
Oct 6th 2004, 3:29 pm
#37
BE Enthusiast
Joined: Jan 2004
Location: Melbourne
Posts: 400
Re: exchange rates
If you have any of these dollars going spare
[QUOTE]
27/9/01 $3.04
QUOTE]
I may be able to help you........Shall we say $3.00 ?
[QUOTE]
27/9/01 $3.04
QUOTE]
I may be able to help you........Shall we say $3.00 ?
Oct 6th 2004, 10:27 pm
#38
Joined: Feb 2004
Posts: 1,277
Re: exchange rates
Originally Posted by OzTennis
............
You won't get hit with 47% tax if you don't have a TFN, you get hit with 47% if you are a non-resident. We are NR, don't have a TFN and the C'w bank takes just 10% NRWT.
...........
OzTennis
You won't get hit with 47% tax if you don't have a TFN, you get hit with 47% if you are a non-resident. We are NR, don't have a TFN and the C'w bank takes just 10% NRWT.
...........
OzTennis
- If you are a UK tax payer (i.e. non-resident in Oz) you will pay a 10% witholding tax.
- If you are a Oz tax payer (i.e. tax resident in Oz) and you do not supply a TFN you will pay a 47% witholding tax.
Regards
Alistair
Oct 7th 2004, 7:46 am
#39
BE Enthusiast
Joined: Sep 2002
Location: Mornington, Melbourne
Posts: 419
Re: exchange rates
I'm getting really baffled:
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
Oct 7th 2004, 8:02 am
#40
Forum Regular
Joined: May 2003
Posts: 240
Re: exchange rates
Originally Posted by 65 million
I'm getting really baffled:
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
I will try and help.
1. You use HIFX as a broker to buy Aus $$ , you dont get a better exchange rate, you normally get around 3cents less than the "pound rate" . They will tell you all about it when you open an account.
2. I also thought this, but the answer is no! you get stuffed with CGT on any gain in the exchange after you move. 6 month rule apply's to pensions , im told.
3. If you decide to transfer some over now (before you move) you will only get taxed on 10% of the "interest" made.
When you arrive you will be resident , so you will hav to apply for a tax file number, or you will get taxed at 47% on any "interest" made. when you have your TFN, you get taxed on interest earned at the ATO income rate (just like you would get taxed on your savings in UK.)
Hope this helps.
Oct 7th 2004, 8:07 am
#41
Down Under and Lovin It
Joined: May 2004
Location: Ellenbrook, Perth, WA
Posts: 692
Re: exchange rates
Originally Posted by 65 million
I'm getting really baffled:
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
PJ
Oct 7th 2004, 8:21 am
#42
Joined: Feb 2004
Posts: 1,277
Re: exchange rates
Originally Posted by 65 million
I'm getting really baffled:
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
I have perm residency visa and arrive in Melbourne on Wed 8th December. We have set up a migrant account with Commonwealth Bank and just waiting for the exchange rate to improve be we move it over.
Q1. I have also set up an account with HIFX and was going to move the money there and then onto Aus Commonwealth bank as I was under the impression we'd get better exchange rates this way, is this so?
Q2. Is there or is there not a 6 month "window" after arrival in oz in which to exchange your money tax free?
Q3. Am I going to be taxed at 47% (or any other %) on placing my life savings in the commonwealth bank?????? :scared: :scared:
If someone could please answer these three quesions I "may" just sleep a little better at night.
cheers,
65KK
Answers to your questions, with some of my own experiences.
1) HIFX do give a good rate. I also found them easy to use.
2) There is no 6 months grace (this only applies to pensions).
3a) If you earn any interest before you arrive, you will be taxed at 10% by ATO which can be ofset against your IR bill.
3b) In between the time of my arrival and getting my TFN, the bank held onto 47% of the interest I made (i.e. took it out of my account). Once I sent them the TFN they put the money back into my account. At some point in the future I will declare the interest to the ATO and they will take an approriate amount of tax.
Regards
Alistair
Oct 7th 2004, 8:44 am
#43
BE Enthusiast
Joined: Sep 2002
Location: Mornington, Melbourne
Posts: 419
Re: exchange rates
Thanks everyone for your reply's, all is clear now. For a moment I thought they were helping themselves to 47% of your actual money! I really do appreciate how helpfull eveyone is on this site- cheers! 
Oct 7th 2004, 8:47 am
#44
Forum Regular
Joined: May 2003
Posts: 240
Re: exchange rates
Now we have sorted that out,
whats everyone goint to do? are you going to just bite the bullet and buy now, or are you going to wait and hope for a rise, and pay the CGT on the rise.?
I cant make my mind up.
whats everyone goint to do? are you going to just bite the bullet and buy now, or are you going to wait and hope for a rise, and pay the CGT on the rise.?
I cant make my mind up.
Oct 7th 2004, 8:47 am
#45
BE Enthusiast
Joined: Sep 2002
Location: Mornington, Melbourne
Posts: 419
Re: exchange rates
One quic question Alistair,
Who/what is anATO?
Does the governemnt not automatically take its tax from your account like they do in the UK???
Who/what is anATO?
Does the governemnt not automatically take its tax from your account like they do in the UK???