Money Transfer to Australia

[prateek.1588]

I am an Indian expat living in the Middle East…I have recently secured my Australian PR…If I open an Australian bank account from overseas and transfer my savings there every month before moving to Australia will it be taxed under Australian law?

[rammygirl]

As I understand it (and this is what happened to us) The transfer of your own funds will not be taxed, however any interest earned will have a 10% withholding tax applied by the bank as you are not resident in Australia.  Not sure if you can open a savings account that will pay good interest from abroad though. 
If the country you reside in has a tax agreement with Australia then tax paid to the ATO can be offset against any tax payable in your country of residence.

Be aware that you can open an account and deposit money but you can’t then use that account until you present at the bank to verify your identity  

 

 

Edited October 23, 2019 by rammygirl

[prateek.1588]

Thanks @rammygirl....I am currently in Qatar....the country has no income tax (or even indirect) taxation law....so everything we earn here is tax free....my only concern was since the said transfer of funds are gonna occur every month for a period of say 8-10 months before I permanently move I am fearful that the ATO may consider it as overseas income and tax that...moreover I am planning a visa validation trip in say Feb?march 2020 and permanent relocation in say around Sep/Oct 2020....will the above scenario of validation trip and then permanent relocation impact the taxation? Request your advice on the same please!

[rammygirl]

You may need to seek advice from a qualified accountant.  Why not just send one or two transfers?  As long as you can prove they are your savings you should be fine.

[Collie]

No as you will not be tax resident in Australia until you move here.

Can recommend Currency fair for transfers.

[prateek.1588]

Thanks for the response guys!

[Ken]

On 24/10/2019 at 16:56, prateek.1588 said:

Thanks @rammygirl....I am currently in Qatar....the country has no income tax (or even indirect) taxation law....so everything we earn here is tax free....my only concern was since the said transfer of funds are gonna occur every month for a period of say 8-10 months before I permanently move I am fearful that the ATO may consider it as overseas income and tax that...moreover I am planning a visa validation trip in say Feb?march 2020 and permanent relocation in say around Sep/Oct 2020....will the above scenario of validation trip and then permanent relocation impact the taxation? Request your advice on the same please!

I know it can cause confusion because both immigration and the ATO use the term "resident" but they each have their own definitions. As far as the ATO is concerned a validation trip is only a visit and has no impact on your tax residency. They'll consider you to be resident in Qatar until you actually move. As a foreign resident you'll be subject to withholding tax on your Australian interest but not actual Australian tax (unless you have other Australian sourced income) up until you permanently relocate.

A validation trip can be used to identify yourself at an Australian bank branch so you'll be able to return funds to Qatar without permanently relocating should the need arise (I can see that's not your plan but it's always good to have options).