gdcollectables

Hi

we are moving to Australia at the end of September.

We've sold our house and have our capital in a UK bank.

Can anyone advise on the best time to convert our £'s to $'s?

Would we incur taxes in Australia if we buy $'s now and have them waiting in an Australian account for when we arrive?

Would we receive a better interest rate if we were able to do this?

We have been watching the exchange rate and would like to take advantage of the recent rises, while the better rate is still available.

Thanks

renth

Do it now, historically this is a very good rate.

ABCDiamond

Yes, you will pay Australian Tax, but only on the interest that you get on any deposit in Australia.

And currently you should be able to get at least 4.5% interest. Depending on the bank, and the amount of the deposit.

phyonics

The rate has increased a lot in recent weeks, and no-one can predict which way its going to move.

So I'd agree, convert as soon as you can.

If I had the cash ready I'd do it now. Even if the rate increases, the value you'd be getting now isn't historically bad anyway.

Cheers

Marko

OzTennis

We got 5.3% for a 6 month term deposit but I suppose gdcollectables wants quicker access to the funds? Until you have an ATO file number and move to Oz you pay 10% NRT (non resident tax) i.e. 10% off 5.3% equals 4.77% net.

Like renth and phyonics, I too think it might be better to act sooner rather than later as mid to high $2.60's is a good rate looking at the last 12 months.

OzTennis

ABCDiamond

Bank of Queensland and Citibank both show 5.45% for 180 days for between $50k & $100k at this site Infochoice

OzTennis

Thanks ABCD. We took our TD's a couple of months ago and I noticed how the I/R's have moved up a shade since. Hopefully, when these ones mature I/R's will still be this or better!

OzTennis

chrissb

This is risky beleive me if you have a bank account set up then your money will be transfered on the seventh day not the day you action it be careful. Also you could instruct a good bank to pick the best day, you have to contact them and say a given dates ie; between the 1'07'04 and the 1'09'04 and they pick the day and hour you determine the lowest you will go and they state the highest they will achieve and they try to achieve it OR you could move it bit at a time ,we did and we did real good out of it and the banks were very good at getting it right. they like to keep the customers a word though 10% in aus or nz is worth 4% in u.k. so your money may grow quicker in the u.k. till you need it when you move :scared:

gdcollectables

Thanks for all your advise!