Tax implications of bringing cash to Australia
Dec 4th 2010, 9:35 am
#1
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Tax implications of bringing cash to Australia
What are the tax implications of bringing big wads of savings to Australia as a migrant? For instance from a house sale.
Dec 4th 2010, 10:16 am
#2
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Re: Tax implications of bringing cash to Australia
None at all if its within 6 months of moving here permanently.
Dec 4th 2010, 11:36 am
#4
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Re: Tax implications of bringing cash to Australia
According to my enquiries, there is no such rule, I asked the ATO that same question, it doesn't matter when you sell your house or when you bring the money over (if it's your primary property). But your answer doesn't surprise me as the tax officer first didn't know, had to put me on a long hold to find out... were you told something differently? You should think they have been asked that question hundreds of times before?!
Dec 5th 2010, 1:46 am
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Re: Tax implications of bringing cash to Australia
According to my enquiries, there is no such rule, I asked the ATO that same question, it doesn't matter when you sell your house or when you bring the money over (if it's your primary property). But your answer doesn't surprise me as the tax officer first didn't know, had to put me on a long hold to find out... were you told something differently? You should think they have been asked that question hundreds of times before?!
Dec 5th 2010, 1:56 am
#6
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Re: Tax implications of bringing cash to Australia
According to my enquiries, there is no such rule, I asked the ATO that same question, it doesn't matter when you sell your house or when you bring the money over (if it's your primary property). But your answer doesn't surprise me as the tax officer first didn't know, had to put me on a long hold to find out... were you told something differently? You should think they have been asked that question hundreds of times before?!
Dec 6th 2010, 2:06 am
#7
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Re: Tax implications of bringing cash to Australia
My understanding is it is to do with the Capital Gain made on the exchange of the currency so if you moved here when the rate was 2:1 you wouldn't have any gain if you currently changed your money at 1.6:1 but if you moved now at 1.6:1 and kept your money in the UK for a year and the rate went up to 2:1 then you would be liable for CGT on the extra dollars made due to the exchange rate change.
Bottom line is that if you move your savings/sell house etc at the same time as you move, then you don't have any tax issues to worry about. If you decide to speculate then you might or might not make gains - or losses. If you make gains, these might be taxable.
Pensions are different and you have 6 months after moving to be able to move them without paying tax on gains since you migrated - but depending on the pension type and your circumstances it may be better to leave them as they are.
Last edited by JAJ; Dec 6th 2010 at 2:08 am.
Dec 6th 2010, 8:05 pm
#8
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Re: Tax implications of bringing cash to Australia
I'm also finding it difficult to find a ruling on this. I called the ATO and like Edmontron they didn't know. I've read reports that its 6 months, 1 year, and also anything over $250000 - lot of mixed signals.
I can't imagine that anyone who has had £100,000 in the UK for past 5 years and transferred it to Oz in say 2 years, if the FX rate went to 2:1, would consider this a gain when the FX rate 5 years ago was about 2.3:1.
The last thing anyone would want to do is transfer a large sum right now at the lowest rate in recent history.
Anyone know if the tax is payable if the exchange rate changes but you leave the money in UK and don't transfer it OR only payable if you do the transfer?
I can't imagine that anyone who has had £100,000 in the UK for past 5 years and transferred it to Oz in say 2 years, if the FX rate went to 2:1, would consider this a gain when the FX rate 5 years ago was about 2.3:1.
The last thing anyone would want to do is transfer a large sum right now at the lowest rate in recent history.
Anyone know if the tax is payable if the exchange rate changes but you leave the money in UK and don't transfer it OR only payable if you do the transfer?
Last edited by mto2010; Dec 6th 2010 at 8:07 pm.
Dec 7th 2010, 1:59 am
#10
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Re: Tax implications of bringing cash to Australia
I'm also finding it difficult to find a ruling on this. I called the ATO and like Edmontron they didn't know. I've read reports that its 6 months, 1 year, and also anything over $250000 - lot of mixed signals.
I can't imagine that anyone who has had £100,000 in the UK for past 5 years and transferred it to Oz in say 2 years, if the FX rate went to 2:1, would consider this a gain when the FX rate 5 years ago was about 2.3:1.
The last thing anyone would want to do is transfer a large sum right now at the lowest rate in recent history.
Anyone know if the tax is payable if the exchange rate changes but you leave the money in UK and don't transfer it OR only payable if you do the transfer?
I can't imagine that anyone who has had £100,000 in the UK for past 5 years and transferred it to Oz in say 2 years, if the FX rate went to 2:1, would consider this a gain when the FX rate 5 years ago was about 2.3:1.
The last thing anyone would want to do is transfer a large sum right now at the lowest rate in recent history.
Anyone know if the tax is payable if the exchange rate changes but you leave the money in UK and don't transfer it OR only payable if you do the transfer?
True, but a capital loss now could be offset against a capital gain in the future...
S
Dec 7th 2010, 7:48 am
#11
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