Thanks for your help everyone. Isn't it the case that the poor exchange rate is to do with Britain's economic troubles, including the housing market, and when that picks up the rate will improve again?
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James, Jo, Elliot(14), Jake(10), Lewis(9)
ACS Skills Assessment sent 9/6/2007, Passed 22/6/07
Visa Application lodged 6/8/2007
Case Officer 1/2/2008 VISA GRANTED April 2008
My understanding on capital gains tax is you need to declare all your assets within the first six months of living in Australia on a full time basis, after this first six months anything you bring into the country is classed as income and is taxable. If you travel over on a trip just to get your families visa stamped and then return to the UK this would not trigger the start of your six month period, it only starts when you are living in Australia and paying their taxes.
Thanks for your help everyone. Isn't it the case that the poor exchange rate is to do with Britain's economic troubles, including the housing market, and when that picks up the rate will improve again?
The sad fact is and it's bad timing for anyone exchanging money at the moment is that not only is our economy in a dip (understatment of the year) and our property market is in turmoil. But to make things extra difficult is the fact that the Australian economy is absolutely booming and is at an 11 year high! Ironically emigration is one factor that is helping the Oz economy but another is the fact that Oz is very rich in minerals and other commodities that a developing China is buying from them.
There is however light at the end of the tunnel (I'm ever the optimist) as surely the Oz boom can't continue forever as we all know how that story could end!?
Sit tight if you can and ride this one out for a wee bit longer me thinks.
My understanding on capital gains tax is you need to declare all your assets within the first six months of living in Australia on a full time basis, after this first six months anything you bring into the country is classed as income and is taxable. If you travel over on a trip just to get your families visa stamped and then return to the UK this would not trigger the start of your six month period, it only starts when you are living in Australia and paying their taxes.
Regards
Nigel
Hi Nigel, this is completely untrue. I would recommend speaking to a tax adviser if you are new to Australia as you may potentially have serious issues, if this is how you are looking at things.
Thanks Tyke, that sounds reasonable. I'm renting to a friend who will only be charged enough to cover the costs, so no profit at all. Will I still be taxed on that money?
I realise you're not an expert but you do have some experience in the matter obviously.
Cheers,
James.
Hi, As a UK citizen you still get your tax allowance so, if no profit... no tax. You just have to fill in a form before you go and one each financial year. We are in the same situation and I phoned iup the tax office who, surprisingly, were really helpful and knowledgeable. Good luck
Hi Nigel, this is completely untrue. I would recommend speaking to a tax adviser if you are new to Australia as you may potentially have serious issues, if this is how you are looking at things.
Cheers, Andrew
Hi Andrew,
I would be interested to know which part of my message you feel is untrue, I am passing on information I was given by a guest speaker at a Thinking Australia (Migration Agent) Seminar, where experts were answering questions put to them about moving to Australia. One couple at the Seminar were looking to rent their house out in the UK rather than sell just in case life down under wasn’t for them and they wanted to move back to the UK after a year or so. They were told by the expert that if they brought money into Australia after living there longer than six months they would have to pay capital gains tax on it. So another couple who were looking to travel out to Australia and get their Visa validated within the twelve month permitted period were concerned that this would trigger the six month period for bringing money into Australia tax free, because they hadn’t put their house on the market and didn’t know how long it would take to sell. So they were told not to worry because the six months didn’t start until they were living in Australia permanently and this would be when they had jobs and paying Australian taxes. I am not looking to mislead anyone, so if you know something different please let me know.
I would be interested to know which part of my message you feel is untrue, I am passing on information I was given by a guest speaker at a Thinking Australia (Migration Agent) Seminar, where experts were answering questions put to them about moving to Australia. One couple at the Seminar were looking to rent their house out in the UK rather than sell just in case life down under wasn’t for them and they wanted to move back to the UK after a year or so. They were told by the expert that if they brought money into Australia after living there longer than six months they would have to pay capital gains tax on it. So another couple who were looking to travel out to Australia and get their Visa validated within the twelve month permitted period were concerned that this would trigger the six month period for bringing money into Australia tax free, because they hadn’t put their house on the market and didn’t know how long it would take to sell. So they were told not to worry because the six months didn’t start until they were living in Australia permanently and this would be when they had jobs and paying Australian taxes. I am not looking to mislead anyone, so if you know something different please let me know.
Best Regards
Nigel
Hello Nigel,
The first thing is the visa that people are entering on. If It's a PR visa, then if they intend to come to Australia for greater than six months (this is the main test but there are others), then Australian CGT will apply, as well as UK CGT. If they are coming for less than six months, then no issue. Hence, a "recon trip" to Australia is fine and I think this is what your migration agent was talking about at the seminar.
If you don't come in on a PR visa, then there's no Australian tax implication at all.
If you are an Australian tax resident, then if you have more than A$250k in a bank account overseas, you have an issue. Australia will seek to tax the foreign exchange rate gain. Now, if you sold a house, for instance, and then left he money in a UK account, this issue could occur.
In terms of just transferring money between the two countries, ordinarily there is not an issue from either end.
There's a whole of rules that come into play with cross-border issues and UK migration agents (even if they are an expert in that field) are being negligent by offering complex tax advice, covering two tax jurisdictions.
Hi, As a UK citizen you still get your tax allowance so, if no profit... no tax. You just have to fill in a form before you go and one each financial year. We are in the same situation and I phoned iup the tax office who, surprisingly, were really helpful and knowledgeable. Good luck
Whilst there is not a UK liability, if you're PR, you need to disclose this in Australia. You should do so as it is likely you will gain an Australian tax benefit from doing so, due to the ways deductions are dealt with.
The first thing is the visa that people are entering on. If It's a PR visa, then if they intend to come to Australia for greater than six months (this is the main test but there are others), then Australian CGT will apply, as well as UK CGT. If they are coming for less than six months, then no issue. Hence, a "recon trip" to Australia is fine and I think this is what your migration agent was talking about at the seminar.
If you don't come in on a PR visa, then there's no Australian tax implication at all.
If you are an Australian tax resident, then if you have more than A$250k in a bank account overseas, you have an issue. Australia will seek to tax the foreign exchange rate gain. Now, if you sold a house, for instance, and then left he money in a UK account, this issue could occur.
In terms of just transferring money between the two countries, ordinarily there is not an issue from either end.
There's a whole of rules that come into play with cross-border issues and UK migration agents (even if they are an expert in that field) are being negligent by offering complex tax advice, covering two tax jurisdictions.
Cheers, Andrew
Hi Andrew,
Are you saying the information in my original message is correct if migrating to Australia on a permanent resident’s visa?
If the property to be sold in the UK is your sole residence and you have lived in it for more than a year I didn’t think CGT applied to any of the money you may make from its sale.
When the information was given at the seminar I felt it was unfair that you had to sell your home in the UK and bring your money across within the six month period or have to pay CGT, because with the exchange rates and UK housing market being so bad at the moment it doesn’t give you the opportunity to hold onto your property for say a year to see how the market performs or sell it now and wait longer than six months to see if the exchange rate improves. Although the second option may be ok if you could open a Pound Sterling account with an Australian bank, because you would have then brought your money into Australia within the six month period and also have the opportunity to convert it into dollars when the exchange rates improve.
This thread is confusing me and worrying me a little bit, we are flying out on the 1st Sept and I am on a pr spouse visa but our house is still on the market and what with the housing market as it is we don't know when it will sell.
So does that mean if it sells after my initial six months in oz then I have to pay cgt?
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Flying to Brisbane 1st September
