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Transfering Monies

Transfering Monies

Old Mar 5th 2004, 2:27 pm
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Default Transfering Monies

Can anyone advise of the best policy in relation to taking monies into Australia.

We have a 457 visa arriving in Sydney on the 18th April 2004. With the sale of our house completed, we have a element of capital which we intend keeping in the UK until we see how we get on in Australia.

The questions is, how long after arriving in Australia do we have to transfer the monies without sufferinmg from any significant tax deductions.......I believe that it is six months but I am not sure.
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Old Mar 5th 2004, 2:36 pm
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Default Re: Transfering Monies

I agree with you there mate.

I always thought it was 6 months to.

TT

Originally posted by mike7
Can anyone advise of the best policy in relation to taking monies into Australia.

We have a 457 visa arriving in Sydney on the 18th April 2004. With the sale of our house completed, we have a element of capital which we intend keeping in the UK until we see how we get on in Australia.

The questions is, how long after arriving in Australia do we have to transfer the monies without sufferinmg from any significant tax deductions.......I believe that it is six months but I am not sure.
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Old Mar 5th 2004, 3:07 pm
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Default Re: Transfering Monies

Originally posted by mike7
Can anyone advise of the best policy in relation to taking monies into Australia.

We have a 457 visa arriving in Sydney on the 18th April 2004. With the sale of our house completed, we have a element of capital which we intend keeping in the UK until we see how we get on in Australia.

The questions is, how long after arriving in Australia do we have to transfer the monies without sufferinmg from any significant tax deductions.......I believe that it is six months but I am not sure.

What do you mean by significant tax deductions ???
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Old Mar 5th 2004, 3:17 pm
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Default Re: Transfering Monies

To be honest, I am unsure what would apply hence the question.

The worst case would be 47% of the monies transferred. I believe however, that the ATO only regard monies made from the capital as taxable, i.e. interest on the monies if deposited in the bank etc.

If anyone has more accurate information, it would be appreciated.





Originally posted by sjn2003
What do you mean by significant tax deductions ???
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Old Mar 5th 2004, 3:28 pm
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Gapital gains tax would apply, as would be seen as earnings. http://www.ato.gov.au to search on "Capital gains".

Rate depends on rest of your income so cant give a definite figure. Does not apply for any asset (e.g. house) acquired before 20 sept 1985 from what I read, otherwise, take sold value - bought value, apply correct tax rate (guess its probably approx 40% as a ballpark?) and say Ouch !

Easier to move money to au before 6 months is up.

Does anyone know what happens if , say, I want to keep the house in the UK for a year to see how I get on in Oz, then sell ? Will I be hit by tax ? Otherwise, with length of time to sell a house, I'd really have to have it on the market within a month of going out ???
 
Old Mar 5th 2004, 3:43 pm
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Originally posted by DarrenD
Gapital gains tax would apply, as would be seen as earnings. http://www.ato.gov.au to search on "Capital gains".

Rate depends on rest of your income so cant give a definite figure. Does not apply for any asset (e.g. house) acquired before 20 sept 1985 from what I read, otherwise, take sold value - bought value, apply correct tax rate (guess its probably approx 40% as a ballpark?) and say Ouch !

Easier to move money to au before 6 months is up.

Does anyone know what happens if , say, I want to keep the house in the UK for a year to see how I get on in Oz, then sell ? Will I be hit by tax ? Otherwise, with length of time to sell a house, I'd really have to have it on the market within a month of going out ???

I don't think you're right here DarrenD. I'm no expert in Aus tax but am learning fast !!

If you sell your home you will not be liable to CGT in the UK or Australia as it is your main residence. Moving cash from UK to Australia is not going to trigger a CGT liability but you will pay income tax on any interest earned whether in a UK bank a/c or an Australian a/c.

The only place I have seen a 6mth limit come into play is if you keep your UK house (unrented) and buy another in Oz. This would give you two main residences. They will let you get away with this for 6 mths before the sale of the UK house becomes chargeable to CGT.

As I said, am still learning Oz tax. Will happily stand corrected if any of the above proves to be wrong !!
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Old Mar 5th 2004, 3:49 pm
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I agree, SJN2003.

CGT is not paid if your sell your primary home of residence and make a profit on it. Which is nice because my wife and I intend to fund ourselves with the proceeds from our own house sale.
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