Tax on money bringing into Oz

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Tax on money bringing into Oz


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Old 11th April 2011, 01:07 PM
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Default Tax on money bringing into Oz

Hi there, we are currently going for perm visas state sponsored (Perth). I am totally confused about taxation as everyone keeps saying different.
Like many others we are prob going to sell out home and take the money to Oz with us or rent it out and sell in a year or so if it works out. We also have property in the UK that we rent out and are prob going to sell a few years down the line if it works out too.
Someone as told us that once you are residents in Oz you have 6 months to bring in your money otherwise you get taxed on the money that you are bringing in after this as an income. Does anyone know anything about this?
We presumed that our own home would be free from Tax, even if we brought the money in a couple of years later???? As for the other properties, I would have thought that Capital Gains Tax is potentially payable in UK but will we get stung in Oz too????!!! Thanks for any help x

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Old 11th April 2011, 05:26 PM
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You can bring in a remittance without any limits as such, but whatever classifies as "income" will be subject to tax.

Generally, transfer of capital/assets is not considered income, but interest earned on deposits is counted as income.

Capital gains tax is applicable in Australia too, but only if the asset is disposed of in australia. However, income from asset disposal may count towards your gross annual taxable income if the tax office thinks that it is your "normal" source of income. In most cases, one-off property sales are fine, but if u r a property investor who does it as a business, that will count as income.

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Old 12th April 2011, 09:30 AM
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Thanks for your response, I just dont want to end up dong the wrong thing and it costing us. I am familiar with UK taxation but Australian tax is completely unknown!

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Old 13th April 2011, 08:21 PM
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The Capital gains in Australia is only calculated from when you leave the UK so we were told to get our properties valued just before we were leaving. You also had to keep the property for at least 12 months once you had moved to Australia.

This is what we were told back in 2007 when we moved. Not sure if it still applies now.

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Old 14th April 2011, 03:14 PM
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Thanks for your response, that sounds like common sense. Did you pay to get advice from an accountant? Send me a private message if best. Thanks

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Originally Posted by kaz101 View Post
The Capital gains in Australia is only calculated from when you leave the UK so we were told to get our properties valued just before we were leaving. You also had to keep the property for at least 12 months once you had moved to Australia.

This is what we were told back in 2007 when we moved. Not sure if it still applies now.

Cheers,
Karen

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Old 14th April 2011, 08:16 PM
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We paid a company called Montfort International (Australian Emigration, UK Pension Transfers, Emigration New Zealand) for help when it came to financial advice when we were moving. We had private pensions, businesses and property investments to take into account so we wanted to make sure that it was as tax efficient as possible.

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Old 15th April 2011, 10:00 AM
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Thanks Karen, You seem to do a great job on the forum, much appreciated. Did you find it money well spent on using them or could you have done it yourself? I had a quote for £1000 for international tax advice and that seemed a bit steep.(i've also had bad experience of ''experts'' in the UK) its really the implications down the line, say if we sold property after moving to Oz. (do we still get tax allowance in the UK and pay tax there or is it OZ or Both? Someone has told me about a link which doesnt inspire me with confidence about the move...

[Link to competing forum removed by moderator - against forum rules]

Thanks again


Quote:
Originally Posted by kaz101 View Post
We paid a company called Montfort International (Australian Emigration, UK Pension Transfers, Emigration New Zealand) for help when it came to financial advice when we were moving. We had private pensions, businesses and property investments to take into account so we wanted to make sure that it was as tax efficient as possible.

Cheers,
Karen


Last edited by kaz101; 15th April 2011 at 07:52 PM. Reason: Link to competing forum removed by moderator - against forum rules
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Old 15th April 2011, 08:09 PM
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I removed the link since it's to a competing forum, but I did read it first.

We probably could have done it ourselves but that would have taken time and when you're self employed time is money. We went to an initial free interview with them and then on that basis we decided to hire them. I can't remember how much they cost but yes they were worth it to us. Just telling us about the valuation on our property could have saved us thousands and they sorted out our various pensions for us too, and put us in touch with advisors in South Australia.

As ever get legal advice with the forex issue. Since we've been moving money to, and coming to Australia the exchange rate has moved against us. I remember when the exchange rate was 3 Aussie dollars to 1 GBP - that's unlikely to happen again in the near future! It depends on how much money you are moving as to whether it's worth waiting for a better exchange rate. When you work it out sometimes it's a small amount that's being lost - again depending on the amount of money being used.

In the UK you hardly get any interest on your saving whereas here in Australia we're getting 6.51% with a usaver account. Weight that up against what you could use and see if that evens it out a bit.

The exchange rate was better from the UK to Oz when we moved. Would that have stopped us from having a better life over here? No. Would we have moved if the exchange rate had put us in a worse financial situation? No. Once you are over here you are earning dollars anyway.

Any income earned in the UK still has to have tax paid on it in the UK and needs to be entered in the Aussie tax return and you pay tax and then claim it back (something like that since it's changed in the last few years - an accountant can explain it to you).

As for the comment in the other forum that Aussies don't like poms it's not what I've found.

We trade share options on the US market and I let my accountant deal with the tax side of things. We still make a profit so we're happy.

Speak to an accountant / financial advisor if these tax issues bother you - Montfort has all of these when we used them. The tax rules are over my head - that's why I pay an accountant

Cheers,
Karen

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