nomayaja

I think that someone mentioned on this forum that when you migrate you can bring in any amount of money but after 6 months any money you do bring in is taxed. Does anyone know if this is true? If you are taxed, does anyone know how much?

Any info will be greatly appreciated.
Thanks

GinaUK

The 6 month rule is an "Expat myth" - often mentioned but totally untrue.

There is no limit on the money you can bring with you to Oz when you emigrate. Once you live there and are regarded as resident for tax purposes, you are taxed on your earnings, which includes interest earned on savings/investments held overseas.

For more info, including the tax rates, see http://www.ato.gov.au

Gina

rossifumi

Having just visited an ATO just wanted to agree with Gina's comment.

nomayaja

Thank you both for your replies, but am still a bit confused. We have some property abroad and if we decide that in a few years we need to sell it and bring the money into Australia will we be taxed? If we sold it before moving to Oz and transfered the money at the same time of our arrival then we wouldn't be charged income tax? From what I understand, anyone migrating and bringing their savings to Oz aren't charged income tax on that. Sorry, I probably sound completely stupid and have probably confused you now

Thanks

marco121068

If you have a property and keep it - you need to get a valuation on the date you move to Oz as a permanent resident (ie not just a validation trip etc).

When you sell it the difference in values will be what you will be taxed on. I would get proper financial advise just to make sure you don't get caught out and end up with a bigger tax bill than you need to.

nomayaja

Thanks for the reply. Much appreciated!

ABCDiamond

Will you be taxed on the money you bring?

This is a common question, and the general answer is NO, unless you don't bring the money with you at the time that you migrate. Even then, the only tax you will pay, will be on any increase in its value since you became resident here. This change in value can be just from the Exchange rate movements, or the interest you have gained from Bank Accounts in the UK, or even property value increases.

An example to try to explain this:

Assume you have a property in the UK valued at £100k, and £20k in the bank. You move over when the exchange rate is say 2.4 to the £, therefore you are worth $288,000. Assume you bring your funds over 3 months later and the exchange rate at the time is 2.45 to the £. You bring £120k x 2.45 = $294,000.

Your worth has increased by $294k - $288k = $6,000 and this is the figure that is taxable as part of your income for the relevant tax year. If the value of the house had gone up or down it would affect the taxable figure accordingly.

marco121068

THIS also explains the situation.

Source : www.gomatilda.com