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What is the personal tax allowance called in oz please?

What is the personal tax allowance called in oz please?

Old Jan 25th 2007, 9:34 pm
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Default What is the personal tax allowance called in oz please?

is it the same or is it known by another name.

Also while im on to it does anyone know what it is currently for a man or/and a woman who are single. Thanks

My missus has her money in a 5.45 % account in the uk. We are still in the uk. She has a 6.80% Bankwest account in Australia.

If she transfers her money now while the exchange rate is good and then pays it into her oz account, will she be taxed at the higher rate or at the higher rate after reaching a personal tax allowance.

She plans to pay it in the next week or 2 and with the exchange rate good and we have worked out that she could make £10,000 more by doing it this way over the uk account. Will she be taxed on the 10,000 or say if the personal allowance was £4167 as in the uk, would she be only taxed on the PROFITS!?

If so at what rate as she potentially only has a few months of the finacial year lefdt and we will be there 1 month into the next finacial year.

Thanks for any response.

al
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Old Jan 25th 2007, 9:41 pm
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Default Re: What is the personal tax allowance called in oz please?

I don't know the answer off the top of my head but did you check the ATO website?
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Old Jan 26th 2007, 12:20 am
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Default Re: What is the personal tax allowance called in oz please?

Al

If you are (tax resident) in the UK and you have savings in Aus then the bank will automatically deduct 10% withholding tax (regardless of tax allowances). You then claim this tax deduction as a tax credit on your UK tax return (or you do nothing if you earn less than the UK's tax free amount).

Unfortunately if your tax credit is larger than any tax due then you don't get any money back.

Cheers
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Old Jan 26th 2007, 12:27 am
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by MartinLuther
Al

If you are (tax resident) in the UK and you have savings in Aus then the bank will automatically deduct 10% withholding tax (regardless of tax allowances). You then claim this tax deduction as a tax credit on your UK tax return (or you do nothing if you earn less than the UK's tax free amount).

Unfortunately if your tax credit is larger than any tax due then you don't get any money back.

Cheers
And as far as I am aware, a non-resident with only Australian bank interest income in Australia (subject to non-resident tax) does not have to complete an Australian tax return.
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Old Jan 26th 2007, 2:24 am
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by JAJ
And as far as I am aware, a non-resident with only Australian bank interest income in Australia (subject to non-resident tax) does not have to complete an Australian tax return.
Sorry, I thought that was a given
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Old Jan 26th 2007, 11:01 am
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Default Re: What is the personal tax allowance called in oz please?

The tax free threshold.

Best regards.
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Old Jan 26th 2007, 3:49 pm
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by MartinLuther
Al

If you are (tax resident) in the UK and you have savings in Aus then the bank will automatically deduct 10% withholding tax (regardless of tax allowances). You then claim this tax deduction as a tax credit on your UK tax return (or you do nothing if you earn less than the UK's tax free amount).

Unfortunately if your tax credit is larger than any tax due then you don't get any money back.

Cheers

Thanks.

But i will be a tax resident in 6 months time (which will be 5 months of this tax year(oz) ) and 1 month of the next tax year (oz)

Would i be better off then keeping the money in the uk til we go or putting it in a higher interest rate in oz and not touching it til we get there.

We have nearly £200,000 between us if this is a better way of judging.

Thanks

al
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Old Jan 26th 2007, 8:49 pm
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by alkristensen
Thanks.

But i will be a tax resident in 6 months time (which will be 5 months of this tax year(oz) ) and 1 month of the next tax year (oz)

Would i be better off then keeping the money in the uk til we go or putting it in a higher interest rate in oz and not touching it til we get there.

We have nearly £200,000 between us if this is a better way of judging.

Thanks

al
Keep an eye on the exchange rate via ozforex and move it when its good.

Jo
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Old Jan 26th 2007, 9:32 pm
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by alkristensen
Thanks.

But i will be a tax resident in 6 months time (which will be 5 months of this tax year(oz) ) and 1 month of the next tax year (oz)

Would i be better off then keeping the money in the uk til we go or putting it in a higher interest rate in oz and not touching it til we get there.

We have nearly £200,000 between us if this is a better way of judging.

Thanks

al
Hi Al,

I'm assuming that you are arriving at the end of July and that you will be here 1 month into the Aus tax year and 4 months into the UK tax year.

If you transfer money into Aus savings now, then between now and the end of July you will be taxed at 10% by the ATO. You will not be able to get this money back from the ATO. You can use this money as a tax credit against your UK tax for this period. However if you do not earn (savings included) more than your UK personal allowance (either this UK tax year or in the 4 months of the next UK tax year then this tax is effectively gone).

Once you arrive in Aus at the end of July you will be taxed at your normal marginal rate. Until you give the bank your tax file number (TFN) they will withhold 46.5% but this will be included in your end of year tax calculations (so you can get some or all of this back). Once you have supplied your TFN the bank does not take anymore tax and any tax you owe will be again sorted out when you do your tax return. The tax free allowance will be reduced by 11/12ths because of the shorter tax year. None of the other tax bands are reduced in this way.

Considering the rates that you quoted in your OP the the money in the Aus account would generate a return of 6.12% if you could not reclaim the withholding tax which is obviously still better than the 5.45% return of the UK account. And I'm sure you're considering what looks like a favourable exchange rate at the moment.

Hope this helps - feel free to ask for any clarification.

Cheers

Last edited by MartinLuther; Jan 26th 2007 at 9:34 pm.
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Old Jan 26th 2007, 10:24 pm
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by MartinLuther
Hi Al,

I'm assuming that you are arriving at the end of July and that you will be here 1 month into the Aus tax year and 4 months into the UK tax year.

If you transfer money into Aus savings now, then between now and the end of July you will be taxed at 10% by the ATO. You will not be able to get this money back from the ATO. You can use this money as a tax credit against your UK tax for this period. However if you do not earn (savings included) more than your UK personal allowance (either this UK tax year or in the 4 months of the next UK tax year then this tax is effectively gone).

Once you arrive in Aus at the end of July you will be taxed at your normal marginal rate. Until you give the bank your tax file number (TFN) they will withhold 46.5% but this will be included in your end of year tax calculations (so you can get some or all of this back). Once you have supplied your TFN the bank does not take anymore tax and any tax you owe will be again sorted out when you do your tax return. The tax free allowance will be reduced by 11/12ths because of the shorter tax year. None of the other tax bands are reduced in this way.

Considering the rates that you quoted in your OP the the money in the Aus account would generate a return of 6.12% if you could not reclaim the withholding tax which is obviously still better than the 5.45% return of the UK account. And I'm sure you're considering what looks like a favourable exchange rate at the moment.

Hope this helps - feel free to ask for any clarification.

Cheers
A bit more from the horses mouth...

http://www.ato.gov.au/youth/content....tent/39242.htm

Mark
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Old Jan 27th 2007, 11:25 pm
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by MartinLuther
Hi Al,

I'm assuming that you are arriving at the end of July and that you will be here 1 month into the Aus tax year and 4 months into the UK tax year.

If you transfer money into Aus savings now, then between now and the end of July you will be taxed at 10% by the ATO. You will not be able to get this money back from the ATO. You can use this money as a tax credit against your UK tax for this period. However if you do not earn (savings included) more than your UK personal allowance (either this UK tax year or in the 4 months of the next UK tax year then this tax is effectively gone).

Once you arrive in Aus at the end of July you will be taxed at your normal marginal rate. Until you give the bank your tax file number (TFN) they will withhold 46.5% but this will be included in your end of year tax calculations (so you can get some or all of this back). Once you have supplied your TFN the bank does not take anymore tax and any tax you owe will be again sorted out when you do your tax return. The tax free allowance will be reduced by 11/12ths because of the shorter tax year. None of the other tax bands are reduced in this way.

Considering the rates that you quoted in your OP the the money in the Aus account would generate a return of 6.12% if you could not reclaim the withholding tax which is obviously still better than the 5.45% return of the UK account. And I'm sure you're considering what looks like a favourable exchange rate at the moment.

Hope this helps - feel free to ask for any clarification.

Cheers
Explained in perfect english that even i could understand, thankyou so much.

What do you do for a living mate.

Cheers
al
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Old Jan 28th 2007, 1:59 am
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Default Re: What is the personal tax allowance called in oz please?

Originally Posted by alkristensen
Explained in perfect english that even i could understand, thankyou so much.

What do you do for a living mate.

Cheers
al
Hi Al,

I'm in IT: software testing. I've had a few investments over the years so I've had a bit of experience with complex tax situations.

Cheers
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