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Taking money to Oz: Tax???

Taking money to Oz: Tax???

Old Mar 1st 2005, 5:50 pm
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Default Taking money to Oz: Tax???

Hi guys,
we are migrating to Oz in september and we were planning on taking the money we get from selling our home in Holland with us. But its probably very useful to find out how much tax we have to pay on the amount we take into the country. Can anyone enlighten us? We do have an aussie account, so we could just transfer it, we are not talking cash. (shame really, would look very sophisticated... )
Thanks heaps!
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Old Mar 1st 2005, 6:06 pm
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Default Re: Taking money to Oz: Tax???

Zero!

6 months to take / send it once you migrate.

Bye
Mark
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Old Mar 1st 2005, 6:09 pm
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Default Re: Taking money to Oz: Tax???

Thanx Mark, thats a huge relief!
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Old Mar 1st 2005, 6:11 pm
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Default Re: Taking money to Oz: Tax???

Originally Posted by freckles
Thanx Mark, thats a huge relief!
Glad I made someone's day today

Bye
Mark
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Old Mar 1st 2005, 6:14 pm
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Default Re: Taking money to Oz: Tax???

Better still: i can safely say that i probably wouldnt have tried to get my visa if these forums wouldnt have been available. Its such a good thing to be able to ask people who have been through the same experiences. Hopefully i will be able to make someones day soon!
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Old Mar 1st 2005, 8:51 pm
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Default Re: Taking money to Oz: Tax???

Originally Posted by markeh
Zero!

6 months to take / send it once you migrate.

Bye
Mark
Not true in most instances (I think you're just referring to *some* pension type arrangements).

Australia does not have any tax on capital transferred into the country.

Depending on the circumstances, there may be a liability to capital gains or income tax but this depends on the timing of your gains vs when you take up residence. Sale of foreign currency may trigger a capital gains tax liability.


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Old Mar 2nd 2005, 12:20 am
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Default Re: Taking money to Oz: Tax???

I have seen this 6 months window of opportunity quoted far too often ... and have yet to see this confirmed in any official publication. Where did you establish this?

Best regards.



Originally Posted by markeh
Zero!

6 months to take / send it once you migrate.

Bye
Mark
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Old Mar 2nd 2005, 12:21 am
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Default Re: Taking money to Oz: Tax???

There could be tax implications if you hold your money back and wait to see if the exchange rate improves, read this press release from Go Matilda:

http://www.gomatilda.com/news/article.cfm?articleid=327
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Old Mar 2nd 2005, 7:39 am
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Default Re: Taking money to Oz: Tax???

Right, so i basically cheered too soon? But still, what if we move our house-money to our Aussie bank account before we actually fly to Australia? Or maybe do it in a few portions? Does someone have experience with all this? Thanks for all the help!
Sonja and Eric

Last edited by freckles; Mar 2nd 2005 at 8:05 am.
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Old Mar 2nd 2005, 10:45 am
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Default Re: Taking money to Oz: Tax???

Originally Posted by freckles
Right, so i basically cheered too soon? But still, what if we move our house-money to our Aussie bank account before we actually fly to Australia? Or maybe do it in a few portions? Does someone have experience with all this? Thanks for all the help!
Sonja and Eric
If you realise a capital gain *before* you move to Australia, then there should be no tax impact as far as Australia is concerned. There might be in the case of the UK.


Jeremy
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Old Mar 2nd 2005, 11:00 am
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Default Re: Taking money to Oz: Tax???

Originally Posted by JAJ
If you realise a capital gain *before* you move to Australia, then there should be no tax impact as far as Australia is concerned. There might be in the case of the UK.


Jeremy
I have always worked on a vague hunch that capital gains (and CGT) would not apply (in the UK) to your main or only residence and/or that it wouldn't apply if you had lived in it for more than a certain number of years??? Working on this assumption I have always thought that we wouldn't be taxed in the UK or Oz when we sell up our UK house and move the funds.

Your advice would be much appreciated Jeremy or Alan. (Alan, watch those Bulldogs go this season!)
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Old Mar 2nd 2005, 12:50 pm
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Default Re: Taking money to Oz: Tax???

Hello,

If you change your money to $ before you arrive then there are no tax implications. If you change the money after you arrive there could be some tax on any gains that you make. For example if you have 100,000 euros and the exchange rate is 1.67 when you arrive, if you later change this money at 1.70 then you will have made a gain of $3000 which is taxable either under the Foreign Exchange Gains rules of CGT rules (which applies depends on several factors and makes no difference if you exchange in the 1st year). Note that if you make a loss you can offset this against current or future gains.

There is a rule that gives you some exemption on CGT on a house that used to be your main residence if you go into rental accommodation when you come to Oz.

The only thing that is exempt for 6 months are gains made on private (type) pensions.

Regards
Alistair
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Old Mar 2nd 2005, 1:04 pm
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Default Re: Taking money to Oz: Tax???

Originally Posted by kirsty&al
Hello,

If you change your money to $ before you arrive then there are no tax implications. If you change the money after you arrive there could be some tax on any gains that you make. For example if you have 100,000 euros and the exchange rate is 1.67 when you arrive, if you later change this money at 1.70 then you will have made a gain of $3000 which is taxable either under the Foreign Exchange Gains rules of CGT rules (which applies depends on several factors and makes no difference if you exchange in the 1st year). Note that if you make a loss you can offset this against current or future gains.

There is a rule that gives you some exemption on CGT on a house that used to be your main residence if you go into rental accommodation when you come to Oz.

The only thing that is exempt for 6 months are gains made on private (type) pensions.

Regards
Alistair
Alistair

Thanks very much for that but are you referring to the capital gains made on the sale of your property (difference between purchase price and sale price) or only the capital gain made on the delayed transfer of funds as in your example? In a nutshell there could be a capital gain from the property and/or a capital gain from a foreign currency transaction. My question was just referring to the former of course.

How are things on the Peninsula?

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Old Mar 2nd 2005, 8:35 pm
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Default Re: Taking money to Oz: Tax???

Originally Posted by OzTennis
Alistair

Thanks very much for that but are you referring to the capital gains made on the sale of your property (difference between purchase price and sale price) or only the capital gain made on the delayed transfer of funds as in your example? In a nutshell there could be a capital gain from the property and/or a capital gain from a foreign currency transaction. My question was just referring to the former of course.

How are things on the Peninsula?

OzTennis
Hello,

I'm not sure they make a distinction. The basic rule is that your assets are nominally converted to $s the day you arrive (to settle permanently) and any gain is assessed when you move the money across. I don't think it matters whether the gain came as a result of the house price rising or the exchange rate. So, if you are within the exemption period (which I think is 6 years) and you haven't bought a house in Oz then the gain on your old home is exempt.

Unfortunately, with houses, the complication is the value of the house on the day you arrived.

Life on the Peninsula is good. It's a great place to live (as you probably know).

I guess you're thinking of returning to Oz then?

Regards
Alistair
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Old Mar 3rd 2005, 9:33 am
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Default Re: Taking money to Oz: Tax???

Originally Posted by kirsty&al
Hello,

I'm not sure they make a distinction. The basic rule is that your assets are nominally converted to $s the day you arrive (to settle permanently) and any gain is assessed when you move the money across. I don't think it matters whether the gain came as a result of the house price rising or the exchange rate. So, if you are within the exemption period (which I think is 6 years) and you haven't bought a house in Oz then the gain on your old home is exempt.

Unfortunately, with houses, the complication is the value of the house on the day you arrived.

Life on the Peninsula is good. It's a great place to live (as you probably know).

I guess you're thinking of returning to Oz then?

Regards
Alistair
Ah, we may have a tax issue as we own houses in the UK and Oz (Williamstown). We will sell up in Scotland and move back to Melbourne so ATO might be interested in the $'s we move!

The Peninsula certainly is a very nice area and I know it reasonably well because my brother and his family live at Frankston - long story, he lectures at Monash, sometimes at Frankston campus, wife's family come from Wonthaggi and our parents from Willie so it is a convenient location for them.

Our plans are indefinite in the sense that we will move back but we don't know exactly when. Not to put too fine a point on it but we have an elderly mother-in-law to look after here and as long as, you know, we'll stay here.

OzTennis
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