Hi everyone:

Please enlighten me if you know about this.

Once you open a bank account and put all your life savings in it, is there a tax on the savings that was brought in to the country?
Is it better to bring in all your savings when you relocate or is it better to do transfers later on?

Please help!


sush

No there's no tax on your money, only on any interest you earn between moving here and bringing it over. It's best to bring it straight away if you can

It also depends upon when you are considered to be resident in Oz for tax purposes... or so my accountant informs me... so maybe best to get some professional advice about that...

Yes it does. But I don't know the specifics.

Me neither... But I have an income in the UK that is free of tax there but not here so this point is fairly crucial for me...! I'm also very happy to be told I won't be paying any tax in Oz until May 2009...

Thanks for the info. I'm going to be staying in Oz for good this time. So I'll have to get my TFN when I settle down.....

sush

Expanding on this a little further - if we initially have no income from earnings, does anyone know what tax rate will apply to interest on savings? Is it just classed as income and taxed as normal?

i was told by westpac that tax on interest is 10% for non residents and then 33% once you become a resident.

Does the 30% apply even if you are unemployed? I'm going to be having a baby November and am planning on not working for 2 years. Are there any tax conssissions in such cases?

sush

Interest is treated the same as other income so you're taxed on it at your usual marginal rate. It is not a flat 33%, the rate is totally dependent on what else you earned during the year. If you have no other income, then you could pay very little, or no tax on the interest - it depends on how much the interest is.

Where do people get their information from?

Ask Westpac to clarify - and when it's wrong tell them they're talking bull.

Incorrect.

The tax rates for residents are on a scale based upon your total income.

So presumably for someone who had no income other than eg their UK ISA, which paid out about £1000 a year in interest, they may not pay any tax on this at all? (Or be able to claim tax back afterwards?)