Finances
#1
Just Joined
Thread Starter
Joined: Mar 2005
Location: Originally Stockton on Tees, now Murarrie Brisbane
Posts: 24
Finances
Hi
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
#2
formerly Poppy
Joined: Dec 2006
Location: Woolooware, Sutherland Shire, NSW
Posts: 52
Re: Finances
We got a forward contract with a Money Exchange six weeks or so before we came out which meant we got the highest rate for that period which was 2.50 which seems to be the average highest over the last few months and then they tranferred it once we had opened an account in Oz I understood, but I may be wrong, that you need to bring money over within the first six months or there would be tax implications, but then I'm sure somebody said that was wrong! You may need to have some when you are here as the balance helps to get a rental if you haven't got jobs! We opened an account with St George here and they have been fab. We've got 5.75% which I think is reasonable. There is a risk that if you don't transfer it and the exchange rates drops a lot, but its just a lottery really, you could wait and it might go right up. Probably best to do whats right for you.
Good luck with the move anyway!
Good luck with the move anyway!
#3
Re: Finances
Originally Posted by NorthernLass
Hi
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
Can anyone recomend an account with a good rate of interest and easy access? is it easy to set up online and are there any fees for importing large ammounts of money?
Also, can i get a taxfile number before i enter the country or do i have to wait till i get to sydney, thanx
#4
Re: Finances
Originally Posted by NorthernLass
Hi
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
We have just sold our house and are moving to Oz in Feb (currently sleeping on the floor at parents house ) We are not sure what to do with the money we have made on the house. We will be putting it straight back into property in Oz but that won't be for about a year. Is it best to invest it in the uk and then transfer it to Oz in about a year, or just transfer it straight away? Not sure if there are any tax implications? sorry if I sound vague, xmas hangover
Thanks!!
#5
Re: Finances
Hi Mark123
can i ask why watch for ISA's? we have a couple ongoing in uk which we plan to leave behind for now.
cheers
Raiz
can i ask why watch for ISA's? we have a couple ongoing in uk which we plan to leave behind for now.
cheers
Raiz
Originally Posted by mark213
Alan Colette is a good contact for these matters. Usually funds need to be in Australia within 6 months of arrival - this includes and pension funds,or you'll be taxed as income when in arrives! Also watch for any ISA's etc... Arrgh. However i may be wrong as sales of property are slightly different. I would transfer it when you can - oz accounts pay better interest than the uk.
#6
Victorian Evangelist
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
Re: Finances
Originally Posted by mark213
Usually funds need to be in Australia within 6 months of arrival - this includes and pension funds,or you'll be taxed as income when in arrives!
Buzzy
#7
Re: Finances
Originally Posted by raiz
Hi Mark123
can i ask why watch for ISA's? we have a couple ongoing in uk which we plan to leave behind for now.
cheers
Raiz
can i ask why watch for ISA's? we have a couple ongoing in uk which we plan to leave behind for now.
cheers
Raiz
#8
Re: Finances
for good rates of interest - try city pacific, we get 9.5%, there is a risk, of course, however when we saw their website and their profits... they build on the goldcoast and thats not stopping for a while. we do not have to give notice to withdraw but it is'nt a current account, and the rate drops if you do. basically we just had $20k in it and in two and a half years it went up to nearly $25k.... (we often say that it would have been good if we'd had a higher balance in teh first place!) needed to draw $5k a few months ago when we were moving properties, no problem, and i put it back in a couple of weeks later anyway. if left for the whole 12 month period we get the full 9.5%. of course you have to declare the interest on your tax return, this is split between me and hubby as earned income.
current accounts vary bank by bank, we have a commonwealth one which pays 5.75% which you can only draw online through another account.
karen
current accounts vary bank by bank, we have a commonwealth one which pays 5.75% which you can only draw online through another account.
karen
#9
Re: Finances
Originally Posted by mark213
Hi Riaz - you cant hold tax free accounts if you are not uk resident. Legally they have to be taken out of ISA status and then the interest earned declared as income on your australian tax return minus any tax deductions taken from the uk.
I did not check whether interest earned could be added to my ISA account, I suspect that this may be allowed but I will look in to it.
I certainly intend to keep my ISA in the UK with the maximum in it that I can add before we depart.
#10
Re: Finances
Originally Posted by karenvirginia
for good rates of interest - try city pacific, we get 9.5%, there is a risk, of course, however when we saw their website and their profits... they build on the goldcoast and thats not stopping for a while.
#11
Re: Finances
Originally Posted by esperanza
This is not what I was told by my bank. They were very specific, and said that I CAN keep my ISA account open even when I am not UK resident for tax purposes. The only restriction was that I am not allowed to add any additional funds, as the allowance that you can add annually only applies to residents.
I did not check whether interest earned could be added to my ISA account, I suspect that this may be allowed but I will look in to it.
I certainly intend to keep my ISA in the UK with the maximum in it that I can add before we depart.
I did not check whether interest earned could be added to my ISA account, I suspect that this may be allowed but I will look in to it.
I certainly intend to keep my ISA in the UK with the maximum in it that I can add before we depart.
#12
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Finances
Be aware that income from UK ISAs is usually taxable if you are a tax resident of Australia - unless you are a "temporary tax resident" (as defined - see the ATO website).
Also, retaining ISAs as a tax resident of Australia can trigger a tax exposure under Australia's Foreign Investment Funds legislation whereby you are required to include the increase in the value of your FIFs from one tax year to the next in your assessable income.
Maybe request the free tax factsheet on Foreign Investment Funds at this webpage:
http://www.collettandco.com/factsheet.cfm
Best regards.
Also, retaining ISAs as a tax resident of Australia can trigger a tax exposure under Australia's Foreign Investment Funds legislation whereby you are required to include the increase in the value of your FIFs from one tax year to the next in your assessable income.
Maybe request the free tax factsheet on Foreign Investment Funds at this webpage:
http://www.collettandco.com/factsheet.cfm
Best regards.
Originally Posted by esperanza
This is not what I was told by my bank. They were very specific, and said that I CAN keep my ISA account open even when I am not UK resident for tax purposes. The only restriction was that I am not allowed to add any additional funds, as the allowance that you can add annually only applies to residents.
I did not check whether interest earned could be added to my ISA account, I suspect that this may be allowed but I will look in to it.
I certainly intend to keep my ISA in the UK with the maximum in it that I can add before we depart.
I did not check whether interest earned could be added to my ISA account, I suspect that this may be allowed but I will look in to it.
I certainly intend to keep my ISA in the UK with the maximum in it that I can add before we depart.
#13
Re: Finances
Originally Posted by esperanza
When you say there is a risk.... is it an investment thing where your money can go down as well as up? I am just not gutsy enough to put all our house deposit money in a risky place, however lucrative it MIGHT be!
#14
BE Enthusiast
Joined: Oct 2006
Posts: 312
Re: Finances
Originally Posted by karenvirginia
for good rates of interest - try city pacific, we get 9.5%, there is a risk, of course, however when we saw their website and their profits... they build on the goldcoast and thats not stopping for a while. we do not have to give notice to withdraw but it is'nt a current account, and the rate drops if you do. basically we just had $20k in it and in two and a half years it went up to nearly $25k.... (we often say that it would have been good if we'd had a higher balance in teh first place!) needed to draw $5k a few months ago when we were moving properties, no problem, and i put it back in a couple of weeks later anyway. if left for the whole 12 month period we get the full 9.5%. of course you have to declare the interest on your tax return, this is split between me and hubby as earned income.
current accounts vary bank by bank, we have a commonwealth one which pays 5.75% which you can only draw online through another account.
karen
current accounts vary bank by bank, we have a commonwealth one which pays 5.75% which you can only draw online through another account.
karen
As you say, "there is a risk, of course". The trick is to assess carefully whether chasing high interest rates is creating an undue risk.
#15
Re: Finances
Hi Adam,
This thread started me thinking about the only investment i have at the moment which is a endowment policy. Although i no longer have a mortgage i continued the payments to the endowment policy i had previuousley. Will this be counted as a taxable investment when it matures if i am resident in Australia?
Cheers
Chris
This thread started me thinking about the only investment i have at the moment which is a endowment policy. Although i no longer have a mortgage i continued the payments to the endowment policy i had previuousley. Will this be counted as a taxable investment when it matures if i am resident in Australia?
Cheers
Chris