Re: What to do with AUD100,000 for 3 months?
 

You are still liable for the tax on interest if you move it offshore and you are an Australian resident. Bankwest have a 6% opening offer. Interest is paid without tax deducted if you have given them your TFN.

Re: What to do with AUD100,000 for 3 months?
 

Hi,

Can you tell me what TFN stands for please

Bunny

Re: What to do with AUD100,000 for 3 months?
 

Hello,

The best rates I have found for cash are:
BankWest (owned by HBOS). The account is instant access but needs to be linked to a conventional bank account (same rules as ING). They have a 6% introductory offer (i.e. you get this for 12 months and then it falls back to their normal rate).
http://abetterdeal.com.au/

EasyStreet. Again this is an instant access connected to a conventional bank account. They are paying 5.4%. They take $2 for membership because they are a credit union (which is refunded when you close the account). The minimum balance is $2000. They also have a maximum balance, $250,000, but with $100,000, that should not be a problem for you.

ING Direct. Again an instant access account connected to a conventional bank account. As stated in previous posts they pay 5.25%. Once you have set up your account you can also put money into 90-day short term deposits paying 5.4%.

If in the UK (as one of the poster's mentioned), ING Direct seems to be about the best at 5%. Note that because of tax issues, that are still in flux, you may want you put your money into a savings account that you opened before July 2003 before you come to stay permanently in Aus.

Regards
Alistair

Re: What to do with AUD100,000 for 3 months?
 

Tax File Number. It identifies you to the ATO (Australian Tax Office).

Alistair

Re: What to do with AUD100,000 for 3 months?
 

Sounds illegal to me.

Re: What to do with AUD100,000 for 3 months?
 

Hi Alistair,
We will have the bulk of our money early Feb 2005 but will not be in Oz till June at the earliest and probably won't buy a property for a couple of months, so........from what I have read on this thread I could

I could open a Commonwealth Bank account in this country now.

Put the lolly into account in Feb.

Exchage it into AUD$ with Commonwealth Bank when the rate is good.

Then send it across to Bankwest in Oz.

Is that how it could work or have I misunderstood the plot!

Bunny

Re: What to do with AUD100,000 for 3 months?
 

Got to agree Bankwest is the way to go with a 6% interest rate for the first 12 months with instant access to the account. It's an internet bank like ING Direct (5.25%) or Dragondirect (5.0%).

Here the link Bankwest

Although the link seems to be down at the mo.

Re: What to do with AUD100,000 for 3 months?
 

Heres another link to BankWest http://www.bankwest.com.au

And I agree it has the highest rate at the moment for standard deposits.

Higher rates are offered by some other financial organisations, but they do carry a risk factor.

Australian Capital Reserve is one which offers up to 8.95% interest, depending on length of investment. Mainly for longer term investments.
http://www.acrlimited.com.au/home.html

It makes me wonder, as the banks will lend to us at about 6.5% secured, and you can then invest at 8.95% and make 2.45% profit with someone elses money. Sounds good, but where's the catch ?

Re: What to do with AUD100,000 for 3 months?
 

Sounds like a plan. The only things I'm unsure about and you would need to check are:
- does BankWest allow you to set up an account while still in the UK.
- does the Commonwealth Bank allow you to transact on the account before you arrive (apart from deposits).
- does the Commonwealth Bank allow you to set up internet banking before you arrive.

Regards
Alistair

Re: What to do with AUD100,000 for 3 months?
 

Tax and Risk.

Re: What to do with AUD100,000 for 3 months?
 

Note that because of tax issues, that are still in flux, you may want you put your money into a savings account that you opened before July 2003 before you come to stay permanently in Aus.

Regards
Alistair[/QUOTE]

Hi Alister

Could you please explain the 'tax issues in flux' bit for me. it just might be important as I am (hopefully) going on a business visa and any possible tax problems could cause me great pain.
I have been operating my present Royal Bank of Scotland accounts since 2000.

ps Am taking my hubby Alasdair to Oz with me. At 55 he was too old to get a business visa poor thing.

Best wishes

Bunny

Re: What to do with AUD100,000 for 3 months?
 

Hello,

The ATO introduced a foreign currencies tax on 1/7/2003. As seems to be normal practice with the ATO, they introduce a new tax or a change to existing tax legislation and then cope with the problems/complications that arise through issuing directives (or interpretive decisions). They have recently release a couple of these with regards to the foreign currency tax. Alan Collet explained the changes in the following article http://www.gomatilda.com/news/article.cfm?articleid=327

As said in the article, it depends on your UK account whether you are subject to foreign currency gains or CGT. Does this make any difference? Not really, unless you exchange your money more than 12 months after becoming a tax resident, as you can benefit from a 50% discount CGT.

So what does this all mean? Well fairly much, if you want to avoid any complications then change the money into $s before you arrive. I know this is not possible for a lot of people because of selling houses. If you change the money after you arrive you will have to accept that you will have a complex tax return. Also it may be worth putting the money into an account established before 1/7/2003 before you arrive (or when the house is sold).

I hope this helps; I know this is complicated.
Regards
Alistair