KangaRay

Hi,

We’ve transferred some money to our Australian bank account, taking advantage of the recently good exchange rates. Unfortunately 46.5% of the interest is being deducted in tax as we’re non residents. The bank is legally obliged to deduct the tax as we are unable to provide them with a tax file number.

We’re going out in Jan and hoping to get PR granted before then.

Perhaps we could talk with an Australian Financial Consultant or transfer the money back to the UK.

Any advice appreciated!

Thanks,

JAJ

That does not make any sense. If your address is not in Australia then the bank should only deduce 10% non-resident tax.

Sunny_Glesga

What about if you are in Aus and they are deducting thw 46% is it in your interest to contact the bank and give them your TFN or will it make any difference? what i`m saying is will you lose out at the end of the day or will it work itself out at the end of the tax year, i.e rebate

Wendy

Yes, you should give the bank your TFN.

As far as I am aware at the end of the tax year, you would write how much interest you have earnt and how much tax you have already paid on your tax return, so any amount of tax you've already paid will be deducted from your yearly tax bill.

If you've paid too much obviously you will then get a tax rebate, if you have a shortfall then obviously you will owe them.

TheSubMainMan

What I understand is:

You can't get a Tax File Number(TFN) until you arrive in OZ. So the banks deduct 10% non-resident tax on the interest earned. When you arrive you get your TFN and go tell the bank. So they stop deducting the 10%.

The question is can you get that 10% back now that your registered as a resident with a TFN?

You should not be paying 46.5%.

bobanne

We are in a similar position and took advantage of the good exchange to transfer a lot of money to our Ozzie bank. We trawled the ATO site trying to work out whether we needed a TFN or not and eventually sent an e-mail to the ATO. We validated our visa in May and won`t be moving to Oz until next year. We had a reply back yesterday saying that we shouldn`t get a TFN yet and that the bank would take 10% withholding tax as long as they had an overseas address for us. You can apply for a TFN online but have to send certified copies (or originals) of a choice of passport, marriage certificates. It is all on the ATO website.
Anne

UKEagle2Aus

We set up a Suncorp account in April this year when visiting to validate our visa's. We are going across in November.

The only tax I pay on interest in the account is 10% witholding tax. I need to get more across before I go, as need to pay builders for house builds going on. Once you move permanently you will pay the higher rate of tax on the interest only portion of your money. That's regardless of the money sitting in the UK, or Aus bank/savings accounts.

I have seen an advisor and it is worth investigating for everything inc pensions, endownments, savings, shares etc.

Good luck

UKEagle

Donna Doo

Hi, Can anyone recommend a good independant financial consultant in Brisbane please???

KangaRay

The Bank incorrectly set us up as Australian Citizens living in the UK which is why they were deducting 46.5%.

After being on the phone for 45 mins, their 'Rapid Response' team will update the account and refund me.

[F]According to ATO 10% of any interest earned from your Australian bank accounts is withheld for tax. This interest is not included as assessable income. You need to advise of your overseas address so that this tax can be withheld otherwise tax will be withheld at the higher rate of 46.5%[/FONT]

Interesting my bank does not hold details of previous conversations, only a note to say you called, so trying to get someone to sort this was hard work.

Note to all - ALWAYS take a name!

parkside

what part of the uk were you from ray

KangaRay

Egham, Surrey! Why?.........

Shall I guess you're from Manchester?

parkside

sright m8