JAK

When we finally make the move we will be bringing with todays exchange rate approximately $300,000. Can anyone tell me roughly how much interest we could expect to receive on this a year. We haven't got jobs to come to so will be looking for work as soon as we get there. Do you get taxed on your interest whilst out of work?

Grayling

Around 6% on a term deposit.

Yes you will get taxed on it

JAK

Thank you

Grayling

The interest will vary according to the term of the deposit so you could get a bit higher than that.

The tax will depend on your overall income and allowances but all income is liable for tax.

sassie

Presumably if you haven't got jobs to come to, you won't want to tie it all up in a term deposit. Regular savings accounts vary, so probably need to shop around, but with ING we curently get 5.5%,which would equate to approx. $1,300 per month on $300,00. ING also offer an introductory rate of 6.35% for new customers for the first few months, and unlike many of the other banks, no bank fees to pay!

and yes, you will need to pay tax on any iterest earned, obviously depending on your overall earnings for the tax year.

Scotty1

u bank will give you 6.51 up to 200k, and about 6 on the rest in their normal savings account. You each get a personal allowance of approx 6k, so you will pay some tax but it depends on when you come in the year and how much you actually get in interest re tax

www.ato.gov.au will take you through it

Scotty

JAK

Sorry to be a bit stupid but how much would that be in $ how much income would we expect from that amount?

freebo

$300,000 * 6% = $18,000 per year but the exact amount would depend on if the interest is compounded monthly or annually, annually is exactly $18,000 monthly is roughly $18,500, this is before tax.

goldchoccycoin

Also, if you give them your Tax File Number they will take interest immediately (i.e. not give you your $6K tax-free allowance). So personally I'd keep the TFN and pay the tax at the end of the year!

Trevski

To give you a rough guide to interest we had a amount in each kids trust accounts $100k each and my wife and i had approx $56/60k in our joint and we also had my income of $50k a year, the wife did not work and after the accountant did the taxes we had a tax bill of 6k from tax man just for intrest made on savings (we made $12000 on intrest but lost 50% to tax), be carefull in oz all banks etc must by law tell the ato all your accounts savings etc so the ato will know, also when you bring over any amount over $25k they must inform the ato etc of money coming into oz, so be care full all money in accounts is classed as disposable income and counted as tax liable,it is different here compared to uk,in uk you can have you own savings and not get taxed but in oz the ato want a share of it

Beoz

I think you'll find the HMRC tax UK accounts. Mine certainly gets taxed.

Edit.

Let me clarify - Tax the interest earned - not the account.

MartinLuther

For the current year you can earn up to $16k total earnings before you get taxed. Although there is a small amount of Medicare Levy to pay ($240).

After that your marginal rate (i.e. the tax you pay on the next $ earned) is 20.5% (15% income tax + 4% loss of LITO + 1.5% medicare). The next step up is around about $35k.

freebo

the interest will supplement your income but you will in no way be able to live off it, the average wage is around $65,000, I'm afraid that until you start earning you will be depleting your savings.

MartinLuther

In the UK the banks automatically withhold 20% of your interest in tax. If you are a higher earner then your supposed to declare this interest on the end of year tax return and you pay the difference in tax.

It is possible for low income earners to ask that the bank doesn't withhold the tax but you have to be a low income earner and have little savings for this to be approved. And also the bank has to agree. Not all banks allow this.


Also noted that you have 100k in trust for your kids. Is this in Aus or the UK?

Also the government is notified of any international transfers over $10k.

And your tax thing sounds wrong. I can't see how you could end up paying 50% tax on your interest. Although you may have got hit with the child penalty rates if you have $100k in each child account.

Beoz

In additional, in order to receive the tax free threshold you will need to be an Australian resident for tax purposes. This can be done by applying for a Tax File Number. This is usually done when you start your job. On this form it asks if you are an Australian resident for tax purposes. If you answer No, non tax residents are not eligible for the tax free threshold. The tax free threshold usually comes off your primary source of income like your salary therefore any interest earned becomes part of your overall earnings. Its worth noting if you go back to the UK and become non resident in Australia but retain an Australian bank account all interest is taxed and you don't qualify for the tax free threshold as non resident.