Hopefully a simple question(s)

[sualg]

Hi All,

I have a lump sum as the result of the sale of my primary residence in the UK prior to moving to Sydney last year. I have kept this in a UK account but now the dust has settled on my move i am noticing that the Australian savings rates are much higher that the UK. As the GBP AUD rate is $1:80 today im thinking about moving a large sum into an Australian savings account. so my questions are:-

1) There was no CGT due on the lump sum as it was from the sale of my primary residence in the UK, If i move the money will i have to pay any tax in Australia (apart from any gains from it earning interest)?

2 )Can anybody see a downside to doing this (apart from currency fluctuation) 

[can1983]

not an issue if its life savings. You always have to declare where the money can from when using moneycorp etc if it is even audited.

But one thing to consider is interest is taxable and this kind of transaction when you have moved country is not (primary residence, genuine moved over not bouncing it backwards and forwards 'trading')

if the rate goes to 1.82 you've made 1% tax free. if it goes to 2 you've made 10% all tax free.

So id only move money if you actually need it for a house etc not for a better savings rate

[Ken]

On ‎03‎/‎09‎/‎2018 at 12:26, sualg said:

Hi All,

I have a lump sum as the result of the sale of my primary residence in the UK prior to moving to Sydney last year. I have kept this in a UK account but now the dust has settled on my move i am noticing that the Australian savings rates are much higher that the UK. As the GBP AUD rate is $1:80 today im thinking about moving a large sum into an Australian savings account. so my questions are:-

1) There was no CGT due on the lump sum as it was from the sale of my primary residence in the UK, If i move the money will i have to pay any tax in Australia (apart from any gains from it earning interest)?

2 )Can anybody see a downside to doing this (apart from currency fluctuation) 

If you sold the house before moving to Australia then it is outside the scope of Australian tax (and in any case there is a private residence exemption in Australia too which can be used for up to 6 years after you ceased to live there). You only have to pay tax on money earned after becoming an Australian tax resident (except for Australian sourced income which of course even foreign residents do have to pay tax on). Unless you are a temporary resident you have to pay tax on the interest earned whether or not you move it to Australia so that shouldn't change your calculations at all.