Tax implication of moving money to OZ
#1
Just Joined
Thread Starter
Joined: Sep 2016
Posts: 5
Tax implication of moving money to OZ
Hi, I'm new to the forum so "Hello everyone" to start!
My partner and I will be moving soon to Brisbane from the UK on a 457 visa.
My intention is to transfer sometime in the future all my savings to Australia; the money comes mostly from the sale of my main and only property in April 2015.
My main concern is if there are any tax implications in moving a large sum of money (let's say between 150k and 200k pounds) by bank transfer to Australia?
Also, I will be probably wait a few months hoping that the exchange rate gets a little better after the fall which followed the Brexit referendum, so I am also wondering if it will make any difference from a tax point of view if I transfer the money later on, when I will be already an Australian resident for tax purposes?
Thanks in anticipation for your help.
My partner and I will be moving soon to Brisbane from the UK on a 457 visa.
My intention is to transfer sometime in the future all my savings to Australia; the money comes mostly from the sale of my main and only property in April 2015.
My main concern is if there are any tax implications in moving a large sum of money (let's say between 150k and 200k pounds) by bank transfer to Australia?
Also, I will be probably wait a few months hoping that the exchange rate gets a little better after the fall which followed the Brexit referendum, so I am also wondering if it will make any difference from a tax point of view if I transfer the money later on, when I will be already an Australian resident for tax purposes?
Thanks in anticipation for your help.
#2
Re: Tax implication of moving money to OZ
Hi, I'm new to the forum so "Hello everyone" to start!
My partner and I will be moving soon to Brisbane from the UK on a 457 visa.
My intention is to transfer sometime in the future all my savings to Australia; the money comes mostly from the sale of my main and only property in April 2015.
My main concern is if there are any tax implications in moving a large sum of money (let's say between 150k and 200k pounds) by bank transfer to Australia?
Also, I will be probably wait a few months hoping that the exchange rate gets a little better after the fall which followed the Brexit referendum, so I am also wondering if it will make any difference from a tax point of view if I transfer the money later on, when I will be already an Australian resident for tax purposes?
Thanks in anticipation for your help.
My partner and I will be moving soon to Brisbane from the UK on a 457 visa.
My intention is to transfer sometime in the future all my savings to Australia; the money comes mostly from the sale of my main and only property in April 2015.
My main concern is if there are any tax implications in moving a large sum of money (let's say between 150k and 200k pounds) by bank transfer to Australia?
Also, I will be probably wait a few months hoping that the exchange rate gets a little better after the fall which followed the Brexit referendum, so I am also wondering if it will make any difference from a tax point of view if I transfer the money later on, when I will be already an Australian resident for tax purposes?
Thanks in anticipation for your help.
When you do transfer it, please don't use your bank, their rates are shocking. Use a reputable foreign exchange broker. Best of luck for the move.
#3
Just Joined
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Joined: Sep 2016
Posts: 5
Re: Tax implication of moving money to OZ
Will there be no taxation on the capital gain due to exchange rate fluctuations even if I transfer the money after a year or more since I've entered Australia, i.e. after I have been a resident for a full tax year?
I've been monitoring the exchange rates of some of the leading money transfer operators and UKForex seems to offer the best rates, any personal recommendations?
#4
Re: Tax implication of moving money to OZ
Thank you for the quick reply, I'm glad to hear this!
Will there be no taxation on the capital gain due to exchange rate fluctuations even if I transfer the money after a year or more since I've entered Australia, i.e. after I have been a resident for a full tax year?
I've been monitoring the exchange rates of some of the leading money transfer operators and UKForex seems to offer the best rates, any personal recommendations?
Will there be no taxation on the capital gain due to exchange rate fluctuations even if I transfer the money after a year or more since I've entered Australia, i.e. after I have been a resident for a full tax year?
I've been monitoring the exchange rates of some of the leading money transfer operators and UKForex seems to offer the best rates, any personal recommendations?
I use OzForex and couldn't be happier with them. Any transfers over $10,000 are fee free and I've always had a great rate. I'd assume UKforex are the same.
It takes a bit of faffing to set the account up with them (you need to provide a few types of ID), but once that's done it's dead easy and very safe. You just log into your online account with them, see what rate you get on their 'spot deal', and away you go.
I'd do it a bit differently for large sums, like the proceeds of a property sale. In those instances you're likely to beat the spot deal rate if you call them direct and negotiate with a broker. I did just that when I transferred some of our home sale funds, and he bettered the online rate. With large sums the difference can be quite substantial.
A negotiating tip - don't tell them initially that you've gone online and have a spot deal rate, just say you want to transfer x amount of pounds. The first rate you'll be offered will probably be slightly worse than the online rate. You can then tell them that, and they might offer you a tiny bit better than the online rate.
At that stage, thank them and say you're just going to check with another FX broker you also do business with (make sure you have a company name ready, one of the bigger ones), and if they can't better the rate you've just been given, you'll call them back. That's when you get offered their best rate because they don't want to lose your custom
#5
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Tax implication of moving money to OZ
Thank you for the quick reply, I'm glad to hear this!
Will there be no taxation on the capital gain due to exchange rate fluctuations even if I transfer the money after a year or more since I've entered Australia, i.e. after I have been a resident for a full tax year?
I've been monitoring the exchange rates of some of the leading money transfer operators and UKForex seems to offer the best rates, any personal recommendations?
Will there be no taxation on the capital gain due to exchange rate fluctuations even if I transfer the money after a year or more since I've entered Australia, i.e. after I have been a resident for a full tax year?
I've been monitoring the exchange rates of some of the leading money transfer operators and UKForex seems to offer the best rates, any personal recommendations?
Also predicting FX rates is extremely difficult - if you think the pound may become stronger that's your call but I wouldn't hedge all my bets on that.
#6
Re: Tax implication of moving money to OZ
Just a thought, what are your plans for the future as the 457 is not a permanent visa. You are a temporary resident and expected to return to the UK unless you have plans for a PR application then moving your savings over may not be prudent.
No matter what an employer says there are no guarantees of them sponsoring you for PR.
No matter what an employer says there are no guarantees of them sponsoring you for PR.
#7
Re: Tax implication of moving money to OZ
Had the private ruling, completely untrue. Exchange when you want to. No capital gains on private funds held.
#9
Re: Tax implication of moving money to OZ
I believe, though I could be mistaken, you have 6 months to make the transfer before the ATO looks at the transfer from a capital gain perspective. You may have to google that up.
Also predicting FX rates is extremely difficult - if you think the pound may become stronger that's your call but I wouldn't hedge all my bets on that.
Also predicting FX rates is extremely difficult - if you think the pound may become stronger that's your call but I wouldn't hedge all my bets on that.
There's a partial truth in it, but it only applies to some pension funds and moving them from the UK to Australia.
There has been much debate on the applicability of CGT on forex gains when moving them here over the years - I think that a private ruling is the way to go here.
S
#10
Re: Tax implication of moving money to OZ
I had it because I got fed up with reading posts on here. Back in 2006/07 it was heavily debated on here, so I thought to hell with it. Lets ask the ATO. So now should I want to take advantage of an improving rate sometime in the next few years, I do not have to worry about Forex gains.
#11
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Tax implication of moving money to OZ
I had it because I got fed up with reading posts on here. Back in 2006/07 it was heavily debated on here, so I thought to hell with it. Lets ask the ATO. So now should I want to take advantage of an improving rate sometime in the next few years, I do not have to worry about Forex gains.
#12
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Joined: Sep 2016
Posts: 5
Re: Tax implication of moving money to OZ
Thank you for all the info. I did not know about private ruling and I may consider applying for one in the future.
I was asking the question as an acquaintance told me that her dad got stung by the tax office when he purchased a property in Australia after selling a property in UK and importing the money to OZ. I do not know any more details, e.g. if it was a main home or not etc.
I was wondering which could have been the possible reasons why he had to pay taxes on this money?
I was asking the question as an acquaintance told me that her dad got stung by the tax office when he purchased a property in Australia after selling a property in UK and importing the money to OZ. I do not know any more details, e.g. if it was a main home or not etc.
I was wondering which could have been the possible reasons why he had to pay taxes on this money?
#13
Re: Tax implication of moving money to OZ
Thank you for all the info. I did not know about private ruling and I may consider applying for one in the future.
I was asking the question as an acquaintance told me that her dad got stung by the tax office when he purchased a property in Australia after selling a property in UK and importing the money to OZ. I do not know any more details, e.g. if it was a main home or not etc.
I was wondering which could have been the possible reasons why he had to pay taxes on this money?
I was asking the question as an acquaintance told me that her dad got stung by the tax office when he purchased a property in Australia after selling a property in UK and importing the money to OZ. I do not know any more details, e.g. if it was a main home or not etc.
I was wondering which could have been the possible reasons why he had to pay taxes on this money?
#14
Just Joined
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Joined: Sep 2016
Posts: 5
Re: Tax implication of moving money to OZ
Thinking about it, that makes sense now. I assume that if he sold his UK property after he became resident in Australia, that would have not been considered by the Australian tax office his main residence at the time of the sale, even if it was his only property and main home when he was resident in UK, right?
#15
Re: Tax implication of moving money to OZ
Thinking about it, that makes sense now. I assume that if he sold his UK property after he became resident in Australia, that would have not been considered by the Australian tax office his main residence at the time of the sale, even if it was his only property and main home when he was resident in UK, right?
I was resident here for a few years before selling in the UK. The UK house was deemed my primary residence and hence no tax implications here when I sold.