Re: Savings and Interest
 

:confused::confused::confused:

Re: Savings and Interest
 

Have never heard of that before. Anyone has experiences with ATO enquiry on remittance from overseas (over $25k)?

Re: Savings and Interest
 

I believe it's $10,000

http://britishexpats.com/forum/showt...money+tranfers

Re: Savings and Interest
 

They don't make enquires, they just track all transfers over $10k using something called AUSTRAC. It's an anti-money laundering thing. The banks and other institutions legally have to report these transfers.

I think the same thing happens in the UK. I got questioned about a large transfer in the UK once.

Re: Savings and Interest
 

If I wanted to live off the interest of my savings, I'd want ALL the interest without tax being deducted to live off - maximising my income.

Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.

Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.

Re: Savings and Interest
 

That's all very well but I just got a five figure tax bill from the ATO:(

It does not seem such a good idea when you have to eventually pay up

Re: Savings and Interest
 

Crikey, you must have a lot of savings! Good for you. The tax bill is crap though.

I personally think an element of interest earnt on savings should be tax free - maybe the 50% up to a max of $25K or something. Would encourgae saving a bit more.

Re: Savings and Interest
 

I also have an overseas income which is not taxed at source

You really need a lot of discipline to prepare for the inevitable tax bill

Re: Savings and Interest
 

Not talking about you specifically but people (in general) seem happier when the ATO holds their money and hands it back than when they hold the ATO's money and have to stump it up.

Re: Savings and Interest
 

Agree

It is a tough one really.

I don't like the idea of the ATO holding on to my money but then I don't like paying the annual bill either.

Psychologically I can see that having a rebate each year must seem the best but I can't decide if it actually is.

Re: Savings and Interest
 

Admittedly I have to remind myself that I've had the use of their money when the tax bill arrives.

In Aus there is the added factor that most people get rebates and use it to put things on lay-by during the July sales. It's like a government run Christmas club.

Re: Savings and Interest
 

Perhaps look at it this way - by earning interest you are earning an income. You might not be doing a 40 hour week behind a desk to earn it, but its income none the less. Some government somewhere will want something.

Re: Savings and Interest
 

But your original post said :

>>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!<<

I don't know what you mean here by "Interest" - do you mean "Tax"? In any case, by providing your TFN they *don't* take tax - they *do* if you don't provide it. By giving a TFN you defer your tax to year end.

The OP would be best off calculating how much he needs realistically to live off until the worst case non-employment time, put that plus a bit into a high interest accessible account and the rest into one or two deposit accounts. Each institution has requirements to cover their positions day to day, and offers "specials" at higher deposit rates for various terms.

Re: Savings and Interest
 

Banks, ATO, Centerlink all info share, your bank interest can be pulled up by either in seconds. Even my acct can access Interest details via his ATO access.

Centerlink know far more than you can imagine, they sent me a nice letter informing me I had been overseas and for how long, and cancelled my $0 payment :rolleyes: We dont claim centerlink, just do annual tax return with allowances you get for having kids, but they knew about my trip. That can only be from immigration/passports.

I would also be a bit wary of sticking your money in your kids name:eek: Kids unearned income is taxed at a very high rate after a very small amount.

Re: Savings and Interest
 

Thanks again everyone.

What I was hoping was that it would help us with rent we will have to pay. Like you say we will have to use some of it for living costs until we get work. Fingers crossed it wont take too long!