Question for Alan Collett

Hi Alan,

If I

transfer funds (say £50K) to a Commonwealth Bank Account in Australia when I arrive under PR Visa and leave as £ sterling (due to poor exchange rate)

have the funds converted to Aus $ at a later date (when the rate improves)say a year later

Have to pay Australian tax on anything ?



Thanks



Chris

Sorry - moment I hit the reply button I spotted my stupid mistake - subject should be "Money transferred to Australia" - oops !!!!

Hello Chris.

Yes, the appreciation of a currency other than A$'s once you are Aussie tax resident represents a chargeable gain once you "dispose" of the currency (eg once you sell UK£'s for A$'s), and is assessable in Australia in the year in which you sell the non-A$ currency.

Best regards.

quote:

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Originally posted by tractorboy:
Question for Alan Collett

Hi Alan,

If I

transfer funds (say £50K) to a Commonwealth Bank Account in Australia when I arrive under PR Visa and leave as £ sterling (due to poor exchange rate)

have the funds converted to Aus $ at a later date (when the rate improves)say a year later

Have to pay Australian tax on anything ?



Thanks



Chris

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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

Alan,
At which date do you become tax resident - is it when you first arrive ? If you arrive part way through a tax year do they pro rata the tax bands or allow a full year's worth ?


Thanks


Chris

Chris,

Answers below.

Best regards.

quote:

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Originally posted by tractorboy:
Alan,
At which date do you become tax resident - is it when you first arrive ?

=> Generally, yes (given that you are moving to Australia to live, and as the holder of a permanent residency visa or a long term temporary visa). A visa validation visit on a holiday would not normally trigger tax residency.


If you arrive part way through a tax year do they pro rata the tax bands or allow a full year's worth ?

=> The tax free threshold (the equivalent to the UK's personal allowance, but not so much in value terms) is apportioned in the year of arrival. The rates of tax paid and the tax bandings that apply in the year of becoming a tax resident are those for the full year though.


Thanks


Chris

---

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