I wonder if anyone can answer some queries I have on financial restrictions I would have if I entered australia on a 175 visa. I am looking to sell a house before I go and have shares etc and other savings.

Do i need to declare and prove my net worth during the visa process?

After getting the 175 visa I would like to leave all my money in the UK for a few years until I am settled and want to buy a house in Oz. I believe i would be liable for tax in australia for any earnings I have in the UK i.e. interest on savings, divdends etc. Would it be my responsibility to declare this?

Can someone give me some guidance on these issues?

Thanks.

Only on the first one - No, you do not declare your net worth in independent categories, moreover it would not make any difference if you had an excellent or, erm, iffy credit history back home, you will start from square one credit-wise.

Second - not 100% sure, so will keep mum and see if anyone else has an answer (self in the same @#%t heh)
NJ

As far as I am aware you will need to declare all UK earnings as liable for tax in Australia (including earnings from UK tax free investments such as ISA's). Not sure how things like Capital gains tax work and credit for tax paid in the UK (i.e. on dividends before distribution). I also believe you need to pay tak on any gain you make in FX rates by leaving your monies outside Australia after 6 months of moving here.

With things like this it is probably best to pay for advice from someone who has experience in international taxation. I have a feeling Go Matilda can offer this service but I haven't needed to use this as the only money I have in the UK is that given to me for birthdays/christmas and the interest I earn is in pennies.

"I also believe you need to pay tax on any gain you make in FX rates by leaving your monies outside Australia after 6 months of moving here."

Thanks for the reply. Can anyone confirm the above statement as this would be a major influence on whether i left my money in the UK.

In a similar vein : Your primary residence is exempt from CGT. Can your primary residence be in the UK? If you also buy a house in Australia and still have you house in the UK, can it still be your primary residence for CGT purposes ?

Thanks,

Albert

It's a very popular myth here on the BE forum ...

When you come to Oz on a 175 visa you'll be considered a resident for tax purposed from the day you arrive. You will have to pay tax on your worldwide income.

Before you leave the UK, complete form R85 and hand it/send it to your bank. This will mean your bank interest will be paid gross to you in the UK. At the end of the Oz tax year (30 June each year), you declare the interest you received in the UK on your Oz tax return and pay tax on that interest.

Gina

If you own a house in the UK but are living in rented accommodation in Oz, then your UK house is still classed as your main residence when you sell it.

If you own a house in the UK and own a house in Oz, there are certain circumstances when you can choose - for tax purposes - your UK house as your primary residence when you come to sell it. This is too complicated for this forum and you should see a tax accountant.

Gina