joeyb

Hiya

Hubbie and I are just discussing money matters (well he's discussing it while I've got my head in the sand!) and we were wondering if you have to pay any tax when transferring money over to Oz (such as on things like equity from house sale)
Also, what kind of exchange rate have you been getting for money transfers.

Any help would be useful

Cheers

Jo

p.s the sand is starting to get in my teeth!

Wendy

Don't think you get taxed on the equity, but you will pay the normal tax you get with any bank account, with a balance in it.

Haven't actually got there yet, so still working out transferring it myself.

S J Jackson

You just get taxed on the interest that you earn whilst your money is in the bank. When you fill in your tax return at the end of the tax year you must declare it - banks and the tax office work together here so you MUST declare it!! If you have a large sum sitting in the bank for any length of time it can mean that you have to pay some tax back to the tax office at the end of the year. I would advise seeing a financial advisor when you arrive -- we do not have that problem as have no money!!!!!!!!!!!! :scared:

Big Galah

That's not necessary.

There is no tax payable to either government when you transfer your own money overseas (i.e. when you're not giving it to someone else).

The only cost involved is who you use to transfer the money, and if they charge a commission.

It's more common these days to include any fees in the rate they give you and then advertise their services as commission free (though they tend to omit "at the cost of a crap rate to you").

Have a look here to see the latest rate.

XE.COM

Lately it's been around 1 Pound = $2.35

Bear in mind this is the mid-range rate. The rate you will be offered will depend on:

1) Who you go with (I would advise against high street banks, traditionally poor rates), I've used HIFX, but there are others.

2) Whether you're buying or selling - their buy /sell rates will be slightly above and below this rate (their margin)

3) The amount. Generally, companies like HIFX give you a more favourable rate the bigger the amount you're dealing with.

Once the money is in an account the situation in Australia is slightly different. In the UK tax is generally deducted from interest at source (i.e. the bank does it unless you send them a form telling them why they shouldn't), whereas in Australia all interest is paid gross and you include it in your tax return and they work out if you owe it to them at the end of the year - but this depends on your income/circumstances.

Hope this helps,

Big.

Wol

You don't pay any CGT on your house sale proceeds, for example, unless you leave them in the UK for a long time and they appreciate in $$ terms. The interest of course IS taxed then.

willybear

Hi

I agree with Big G, I also used HiFx and had no problems very quick and easy to use.

On the property front I had to seek professional help as I still have property in the UK, causes a few dramas. PM me if you need more info

will