House Sale Advice

[Guest lbarke2]

Our house is due to complete soon, we have been told by a friend that you have to make sure all your monies are here in Australia before you have been here 6 months or you get taxed on it? (we have been here 5 months)

 

Also not sure if you can help with this one, but if we do transfer money to Australia where is the best place to put it until were ready to buy here?

 

Any advice would be great.

 

Thanks, Lindsey

[Guest vikkiann]

We put ours in an anz savings account, we get 5.25% and it's instant access

[NicF]

Our house is due to complete soon, we have been told by a friend that you have to make sure all your monies are here in Australia before you have been here 6 months or you get taxed on it? (we have been here 5 months)

 

Also not sure if you can help with this one, but if we do transfer money to Australia where is the best place to put it until were ready to buy here?

 

Any advice would be great.

 

Thanks, Lindsey

 

Umm, I don't think this is entirely true, although someone with more knowledge may be able to confirm (there is a rule around transfering pensions after you have been here six months which your friend might be thinking of?). If you have a large sum of money and are not planning on buying a house for a while then it might be worth getting some financial advice about the beat thing to do with it. We put ours in an instant access savings account but we knew we were likely to need it pretty quickly. In fact we've only been here two months and have already used it to buy a block of land.

[Guest wijaya]

I don't think your friend was right. We bought a house here a year after we have lived in Australia. so we transfer the money, definitely more than 6 months after we arrived. i don't remember being taxed. I think that was related to pension. With the exchange rate still poor, you could wait to move the money as late as possible, or you could money bit by bit only when the exchange rate that you are comfortable with.

 

 

regards

[Diane]

You don't have to transfer everything, but you do have to declare any interest earned in the UK on your Australian tax return when you do one, or any income you receive overseas. Also if you move large sums of money over here after you've been here a while, you do have to explain to the tax office where the money originally came from, or they will assume it is overseas earnings. I was given some money from my parents as a gift and moved it over, and had to send the tax office a letter from them confirming that it was a gift.

[Andrew from Vista Financial]

Yep, as said, generally if it is domestic money then there is not a time limit in place. The 6 month rule is based on the transfer of UK Pensions to Australia.

 

Also as Diane has pointed out, if you are a permanent resident of Australia and you decide to leave your funds in the UK then you will have to declare the interest you have earned to the Austalian Tax Office each year when you do your tax return.

 

Regards

 

Andy