mpatel1972 Posted October 9, 2014 Share Posted October 9, 2014 Hi, I'm currently in the UK and have opened up a bank account in Oz where I am receiving interest (small amount). I have my PR and will be moving to Oz soon. The first $18,200 is tax free, I will not be reaching this amount at all in interest. Do I have to pay tax on the interest earned or declare the interest? Also, this account is in joint names. Thanks in advance Mitesh Link to comment Share on other sites More sharing options...
Skippy1 Posted October 9, 2014 Share Posted October 9, 2014 No you do not have to declare in Australia as you have indicated. But also depends on when you become tax resident in Aus and when the interest is credited to you. Tax year ends the End of June You are also still tax resident in UK........so you may have to declare there :wink: if you earn the interest in your UK tax year Link to comment Share on other sites More sharing options...
MARYROSE02 Posted October 9, 2014 Share Posted October 9, 2014 Get a tax agent, eg H & R Block to do your tax return for you. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 9, 2014 Share Posted October 9, 2014 Just include the interest on your Aussie return. It will be taxed as income. Easy enough to do without a tax agent unless other complications. For those non resident Australia taxes from first dollar. Link to comment Share on other sites More sharing options...
mpatel1972 Posted October 10, 2014 Author Share Posted October 10, 2014 Thanks all. I'm getting the interest at the moment as I have opened a Oz account. Sounds like for simplicity, I should declare it when I complete the tax return in Oz. Link to comment Share on other sites More sharing options...
rammygirl Posted October 10, 2014 Share Posted October 10, 2014 As a non resident of Australia you do not get a tax free allowance. the bank should be deducting 10% withholding tax from the interest. If this is your only Australian income you do not need to do an australian tax return. You then declare the interest in the UK and pay any remaining tax there, the 10% already paid is taken into account. once you move to Australia this will change, in Australia the bank doesn't deduct tax from interest at source as in the UK so you declare it on your tax return. Any part years will need to be resolved. Link to comment Share on other sites More sharing options...
Marisawright Posted October 10, 2014 Share Posted October 10, 2014 Hi, I'm currently in the UK and have opened up a bank account in Oz where I am receiving interest (small amount). I have my PR and will be moving to Oz soon. The first $18,200 is tax free, I will not be reaching this amount at all in interest. Do I have to pay tax on the interest earned or declare the interest? Also, this account is in joint names. Thanks in advance Mitesh While you are not resident in Australia, you are not able to claim the tax free threshold. You will be taxed on the whole amount. However, your bank should automatically deduct the tax due, and you do not have to submit a tax return if the bank account is the only investment you have. Link to comment Share on other sites More sharing options...
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