Mrs Jackaroo

Hi guys

Just been having a chat with hubby about this one and I was wondering what others had planned who are going out in the near future.

We will hopefully be leaving early December (house sale permitting) and I can't for one minute believe that the exchange rate will improve much before then.

Our plan is to put the equity from the house into a high interest account and trans it when (if) the exchange rate reaches 2.5 ish. The question is though which type of account? We plan to get some independent financial advice on this one but wondered if any of you had any advice?

Much appreciated

Mrs Jackaroo

Ah, just noticed the 'Exchange Rate = Lead Balloon'! I'll have a read through that too and see if I get an info there!

Grayling

Be aware that you will be liable for Australian tax on any forex gains you make if you decide to transfer any money when the exchange rate is better.
You need to decide if it is worth it or not.
The ATO are particularly interested in any overseas investments held by Australian residents / taxpayers.

G

Mrs Jackaroo

Thanks for that G - I thought there was a timescale that you could transfer the funds during which you wouldn't be liable for the tax? Is this right or am I talking out of my arse? (nothing new there!!). It wouldn't be a huge amount (compared to some anyway), probably around £55k.

Grayling

The capital is not taxed.

Tax is paid on any 'profit' made on changes in the exchange rate.

You will probably find that it is worth paying the tax if there is a reasonable upturn in the exchange rates in the near future.

You must always remember that tax is paid on annual earnings so the rate will vary according to your earnings in any one year.

If the exchange rate worsens then you can always claim any losses against tax.

I am no expert so it is probably worth taking expert advice (although that will also cost ).

The sums you are talking about will not be huge.

Good luck

G

Gjn200

What makes you think the exchange rate is dire? Have a look into the past, take particular interest to the mid 80's!!!!

Quokka

Agree, you should all check this out before investing in Sterling:

http://www.thisismoney.co.uk/news/ar...6&in_page_id=2

Mrs Jackaroo

I suppose I'm just going off what the exchange rates have been since we started looking into moving to oz - 2.8 down to 2.2 is a huge difference. I certainly see the point you're making though.

Mrs Jackaroo

Thanks for that - I'll take a look!

lucyb

Bugger it! Lets all blow the lot in Vegas en route!

Mrs Jackaroo

Ah now that idea I love!

Gjn200

Count me in too!!