Money transfer - Australian Tax 15%
 

I have just been advised that once we relocate to Australia, any monies which are transferred into the country after 6 months are eligable for 15% taxation.
Has anybody else heard of this or can somebody advise. We are planning the move, end of Nov 2010. If the house doesn't sell then 15% is a lot to pay once it does sell.

Re: Money transfer - Australian Tax 15%
 

That is not true. You only pay tax on any interest earned.

Re: Money transfer - Australian Tax 15%
 

It's nonsense - whoever's telling you that has their wires crossed.

Like any government, Australia loves it when you bring foreign money into the country and spend or invest it.

Re: Money transfer - Australian Tax 15%
 

There is no time limit in which transfers have to be made and there is certainly no tax. The only tax you would be liable for would be for any interest and any capital gains you may make on the exchange rate.

Re: Money transfer - Australian Tax 15%
 

Found this thread when doing a search...

So does this mean if we've been here for 2 years, and then sell our flat in London and bring the money over, we won't have to pay any special tax on it? I know we won't have Capital Gains Tax if we haven't bought a place here yet.

Just not really understanding how the 'only get taxed on the interest' applies when you sell a place and bring money over. How does that work?

I know I'm being thick..... but can't quite get my head around it! :o

Re: Money transfer - Australian Tax 15%
 

The 15% is in relation to transferring pension funds to Australia. If you transfer your pension within 6 months there is no tax on it. If you transfer your pension after 6 months then you pay 15% tax on any GAIN in the value of the pension fund since you arrived.

There is no tax on any other money transfer.

If there is any capital gains tax to pay on anything then it has to paid regardless of whether the money is transferred or not.

If you earn interest on any money, wherever it is, then that is counted as income and gets taxed as such.

Re: Money transfer - Australian Tax 15%
 

Phew :) thank you for explaining that!