nickzeff

Hi guys,

just started doing some research into moving to Oz with the wife and daughter. I am hoping to apply for a skilled independent visa, and heard that it's best to have a minimum amount in the bank to prove you can establish yourself over there.

How much is enough, and also - does it have to be in a savings account? I have money in an ISA, would I need to cash that in? When would the money need to be in an account? Can I get away with having it invested until late in the application process?

Hope you can help! Cheers in advance.

WS

Hi,

There is no 'minimum' amount of money you need.

There is only a question on the 47sk Form which asks how much money you will bring to Australia but you don't have to provide any evidence of it and they don't check how much you actually take.

nickzeff

Thanks so much. And congrats on your visa!

quercus

Hi, I was asked for evidence for a possible bond. I sent copies of various accounts I have, including ISA's, and also house valuation and mortgage details.

I just listed it all and converted the bottom line into AUD (just on paper, you understand) and sent it. They were happy with it, I didn't need a bond, and I didn't need to send it over.

Hope that's helpful. Good luck! Q

worzel

Are you aware an ISA loses its tax-free status once you are tax-resident here? Interest rates are higher here so it is probably worth transferring it.

Nursebank

So when you are on a PR visa and living in OZ, and you have kept your ISA up and running in the UK, you no longer recieve the interest tax free in the UK?

Surely the product is UK based, the interest is paid in the UK, you are still a UK citizen, but who taxes the interest.

The UK tax people?

or

The OZ tax people?

Is it because you no longer live in the UK, that you lose your tax free entitlement on your ISA?

worzel

It is not about citizenship but "tax residence". In essence if you mostly reside in Aus then you are caught in Aus tax rules whether you earn the interest in the UK or Aus. Of course, if you don't declare it you won't pay tax on it but it is illegal. Get caught within 2 years and you could well find yourself with 30 days to sell up and be on the plane back to the UK.

You can make a declaration to the UK govt that you don't live there so not pay UK tax (if there were any), BTW.

Nursebank

So you declare to the OZ tax people you have a tax free ISA held in the UK, the UK goverment will not tax you because it is tax free?

But because you are now living in OZ, you have to pay tax on the interest of a UK tax free product to the OZ tax people?

Great stuff, you may aswell cash in your chips, and close the ISA down, otherwise it could get very complicated, is it really worth keeping it open?

worzel

Basically. "Tax free ISA" is a bit of a red herring as all your savings in the UK should be free of UK tax if you made the declaration. If you didn't make the declaration you will be taxed both sides.

Nursebank

So in essence, what you are saying is;

If you have any kind of saving vehicle here in the UK, you should make a declaration, fill out a R85 form and recieve your interest free of any tax in the UK, because you are now an OZ tax resident.

All your products will now fall under the OZ tax rules, no matter what they are called in the UK, so you will now pay the tax on your savings interest to the OZ authorities at the end of the tax year by way of a self declaration?

Correct me if i am wrong?

BTW, Worzel, fantastic Blog, love the boat, could do with one of those here in the UK to get to work on?

worzel

There is an exception to every rule and that tends to be especially true with tax, but yes that is the principle. There is probably some clever scheme to get around this but for mere mortals I doubt it applies to us.

PS - You can't have the boat, we are saving it in case we need an ark given the weather here this week.