Some might be interested:
http://www.gomatilda.com.au/news/article.cfm?articleid=302

Best regards.

Alan or anyone who can help
A couple of questions.
1)In the article your posted - I understand the tax liability on Au$10000 but at what rate, is this amount added to an individuals overall income (employment+investments etc)i.e. if this was their sole income for that tax year they wouldn't pay the 47% but at the tax rate applied above minimum threshold?
2) I thought you had 6 months grace to convert and transfer personal funds to Aus without incurring tax?
3) Is tax payable on funds converted & transfered to Aus in advance of arrival?
4) Last if you are going to get hit, is there an optimal time of the Aus tax year to transfer?

Thanks for any guides

Hello Jerry.

In answer to your questions (using the same numbering):

1. Yes, the gain arising is added to your assessable income in the tax year in which you "dispose" of the non A$ currency.

2. Not so - where did you hear this? The 6 month window applies to pension transfers and the application of what is known as section 27CAA.

3. No, as you would not be a tax resident of Australia in that circumstance. Note that I am only referring to Australia's tax rules here: the UK has similar CGT rules in respect of non-UK£ monies!

4. Early in a new tax year is always better than late in a tax year that is about to end, as it defers the payment of the tax liability.

Also, don't forget there is an election available in respect of currency balances totalling less than the equivalent of A$250,000 ...

Please let me know if you want any formal assistance by sending me an email.

Best regards.

quote:

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Originally posted by JerryC:
Alan or anyone who can help
A couple of questions.
1)In the article your posted - I understand the tax liability on Au$10000 but at what rate, is this amount added to an individuals overall income (employment+investments etc)i.e. if this was their sole income for that tax year they wouldn't pay the 47% but at the tax rate applied above minimum threshold?
2) I thought you had 6 months grace to convert and transfer personal funds to Aus without incurring tax?
3) Is tax payable on funds converted & transfered to Aus in advance of arrival?
4) Last if you are going to get hit, is there an optimal time of the Aus tax year to transfer?

Thanks for any guides

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