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Limit on Funds Transfer

Limit on Funds Transfer

Old Nov 28th 2006, 12:39 pm
  #1  
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Default Limit on Funds Transfer

Hi All,

Looking for expert advice for tranfser of funds to Australia.

1. Is there any cap on the amount that an permanent resident can transfer to Australia without paying any tax (like a maximum of £ 100,000 per family or per person etc.)
2. Is there any time limit (like 6 months or one year from the date of first entry) by which we have to transfer the overseas funds without paying any tax ?
3. How does the ATO know how much bank balance we had before the move to Australia - Do we need to provide the overseas bank statements showing the bank balance just before the move ?
4. Is the overseas income after the validation of the visa taxable or only taxable after I opt for the Australian citizenship. Do we have to report the overseas income every year once we validate the permanent resident visa ?

Anyone else in the same boat ? Not sure if it will be worthwile to call ATO office to hear it from the horse's mouth. BTW, our visa class is 136 (skilled immigrant visa)

Thanks a lot.
Mike
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Old Nov 28th 2006, 5:09 pm
  #2  
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Default Re: Limit on Funds Transfer

Originally Posted by movingoz
Hi All,

Looking for expert advice for tranfser of funds to Australia.

1. Is there any cap on the amount that an permanent resident can transfer to Australia without paying any tax (like a maximum of £ 100,000 per family or per person etc.)
2. Is there any time limit (like 6 months or one year from the date of first entry) by which we have to transfer the overseas funds without paying any tax ?
3. How does the ATO know how much bank balance we had before the move to Australia - Do we need to provide the overseas bank statements showing the bank balance just before the move ?
4. Is the overseas income after the validation of the visa taxable or only taxable after I opt for the Australian citizenship. Do we have to report the overseas income every year once we validate the permanent resident visa ?

Anyone else in the same boat ? Not sure if it will be worthwile to call ATO office to hear it from the horse's mouth. BTW, our visa class is 136 (skilled immigrant visa)

Thanks a lot.
Mike
The tax man likes your money! he will won't his cut!

Death and tax's old boy.

Bye
Mark
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Old Nov 29th 2006, 12:29 am
  #3  
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Default Re: Limit on Funds Transfer

Originally Posted by movingoz
Hi All,

Looking for expert advice for tranfser of funds to Australia.

1. Is there any cap on the amount that an permanent resident can transfer to Australia without paying any tax (like a maximum of £ 100,000 per family or per person etc.)
2. Is there any time limit (like 6 months or one year from the date of first entry) by which we have to transfer the overseas funds without paying any tax ?
3. How does the ATO know how much bank balance we had before the move to Australia - Do we need to provide the overseas bank statements showing the bank balance just before the move ?
4. Is the overseas income after the validation of the visa taxable or only taxable after I opt for the Australian citizenship. Do we have to report the overseas income every year once we validate the permanent resident visa ?
1, 2, 3 : why do you think a transfer of your own money is subject to income tax?
(you might incur capital gains tax on exchange gains or losses but that's another question)

4. Yes.
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Old Nov 29th 2006, 12:47 am
  #4  
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Default Re: Limit on Funds Transfer

Originally Posted by movingoz
Hi All,

Looking for expert advice for tranfser of funds to Australia.

1. Is there any cap on the amount that an permanent resident can transfer to Australia without paying any tax (like a maximum of £ 100,000 per family or per person etc.)
2. Is there any time limit (like 6 months or one year from the date of first entry) by which we have to transfer the overseas funds without paying any tax ?
3. How does the ATO know how much bank balance we had before the move to Australia - Do we need to provide the overseas bank statements showing the bank balance just before the move ?
4. Is the overseas income after the validation of the visa taxable or only taxable after I opt for the Australian citizenship. Do we have to report the overseas income every year once we validate the permanent resident visa ?

Anyone else in the same boat ? Not sure if it will be worthwile to call ATO office to hear it from the horse's mouth. BTW, our visa class is 136 (skilled immigrant visa)

Thanks a lot.
Mike
1) There's no limit. If you bring in more than $10k through customs you just have to tell them (so they know).

2) No time limits. No tax free periods. (A 6 month tax-free limit applies to the transfer of pensions.)

3) They don't know how much you have in the UK. They will know how much you've transferred if it's more than $10k. If you transfer money after arrival you may be subject to Foreign gains tax or CGT (if you make a profit) but the ATO is unclear on whether you get taxed on this. If you find yourself in this situation, apply for a private ruling from the ATO.

4) You start paying Aus tax as soon as you become tax resident (typically this is when you arrive to stay permanently which has no dependency on citizenship). You will be taxed on your worldwide income but will be given credit for any tax paid in a country with which Aus has a double taxation agreement.

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Old Nov 30th 2006, 1:59 am
  #5  
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Default Re: Limit on Funds Transfer

Thanks Mark, JAJ and "Martin Luther" for your responses. Seems like i was unecessarily worrying too much.

Mike

Originally Posted by MartinLuther
1) There's no limit. If you bring in more than $10k through customs you just have to tell them (so they know).

2) No time limits. No tax free periods. (A 6 month tax-free limit applies to the transfer of pensions.)

3) They don't know how much you have in the UK. They will know how much you've transferred if it's more than $10k. If you transfer money after arrival you may be subject to Foreign gains tax or CGT (if you make a profit) but the ATO is unclear on whether you get taxed on this. If you find yourself in this situation, apply for a private ruling from the ATO.

4) You start paying Aus tax as soon as you become tax resident (typically this is when you arrive to stay permanently which has no dependency on citizenship). You will be taxed on your worldwide income but will be given credit for any tax paid in a country with which Aus has a double taxation agreement.

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