Hi,

Tried to search for this answer but can't find it, so hoping someone can clarify on transferring money.

1/ Do you have to transfer money before arriving in Aus or do they allow a time period of a few months after arrival before they tax on money transferred.

2/ Do they tax money transferred before arrival?

Thanks for your replies.

Why do you think you get taxed on transferring money over to Australia...? If this is money you have already legally acquired and paid tax on at source then it's yours. If there are variations on that then you should seek suitably qualified advice. I believe Alan Collett on here has accountancy practices in multiple jurisdictions and would be a good choice.

This is a complicated question as it depends how and when the money was earned and what your residency status is. For instance, if you transfer money from the UK which you have sitting in a savings account when you arrive in Aus, you would not be taxed anything. However if you had an endowment or pension in the UK and you transferred the funds 5 years after arriving as a permanent resident, you would be taxed on the difference in value over the 5 years.

So in order to answer the question, we need a bit more info.

BB

Thanks, I just wanted to make sure when to transfer savings because I've read that you get taxed if you transfer after arrival in Aus.

I don't know much about transferring money so it's new to me and just wondered how transferring savings worked. As I mentioned above I've read somewhere that you get taxed on money that is transferred after you take up residency in Aus. Thanks for clarifying my questions.

I recommend you use Ozforez or Tranzfers to move your money - www.ozforex.com.au

BB

The simple answer is no you won't get taxed on it. Transfer it before or soon after you arrive and you'll fine.

There is no tax liability on transferring funds from UK to Aus. You can leave it in the UK for as long as you like. If you leave the funds in the UK, the only Tax liability would be any fluctuation in the exchange rate from when you become tax resident in australia until when the funds are transferred. . Once the funds are in Australia, you are then also liable to pay tax on any interest.

You are also liable for Australian tax on the interest if you leave it in the UK

Thanks for that.

You mean any increase in the exchange rate i.e. the Pound gets stronger than it is against the Oz Dollar after the OP moves over.

If it got weaker, it wouldn't matter.

Unless you inform your bank to otherwise, the UK taxes you 30 percent on interest

Yeah of course, I realised this after I posted and couldn't be bothered editing it.

Yep thats right - if you were to make any gains on the exchange rate, then you are taxed on the difference.

Thanks for all your replies, you've clarified my questions for me.