I read somewhere that Australian Banks deduct tax on the interest earned on your savings at an extortionate amount unless you get a Tax number. As we are going as retirees and therefore will be temporary residents, will we be able to get a tax number??
I would be grateful if anyone knows anything about this as we will be living on this money.

If you look at the site www.ato.gov.au and then look up assistance, click on savings and you will see what the tax office says about this. If I understand it correctly if you don't put in a TFN they apply a witholding tax of 48.5%. it seems quite complex with lots of options.

wenval

Hi Wenval
Thanks for the info, its a comlex but interesting site( if you can understand it).
I emailed you yesterday. did it arrive?
JUNE

Hi June

no I didn't receive your e-mail try again to
www.jlkoell@telepak.net. it is a US service provider. It is my works e-mail and I check it almost every day

wenval

Hi june

I just looked and when it comes out as ane-mail address its not very clear it is jlkoell.

Wenval

Yes, you will be tax resident in Australia as the holders of a long term temporary visa, and so will be able to obtain a Tax File Number.

Once you have provided your TFN to the bank your interest will be paid to you on a gross basis.

Best regards.

quote:

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Originally posted by June:
I read somewhere that Australian Banks deduct tax on the interest earned on your savings at an extortionate amount unless you get a Tax number. As we are going as retirees and therefore will be temporary residents, will we be able to get a tax number??
I would be grateful if anyone knows anything about this as we will be living on this money.

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Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia