MikenSueNW3 Posted February 5, 2011 Share Posted February 5, 2011 If anyone knows of a dog that smokes, and is located in the North Sydney area it would be helpful. Regards Phil Sorry, can't help you there, Mate! Mike Quote Link to comment Share on other sites More sharing options...
charlie5 Posted February 6, 2011 Share Posted February 6, 2011 Not sure about this...in some earlier correspondence, either on this forum or elsewhere, I think it was said that your pension is fixed from when you start drawing it, assuming you are already in Oz i.e. Move to Oz at age 59 pension due at 60 (for a woman) defer for 2 years which increases monthly payments by about 20%(lets call that the deferred rate) start drawing it at 62 at the deferred rate, which is then the fixed price. Have I got this right? Yes but that was not the question I was answering. The question asked was what happens if I have taken my pension in the Uk for 10 years before moving to Australia. The answer is it is fixed from the date you move to Australia not from when you started drawing it. Charlie Quote Link to comment Share on other sites More sharing options...
peewit Posted February 6, 2011 Share Posted February 6, 2011 Yes but that was not the question I was answering. The question asked was what happens if I have taken my pension in the Uk for 10 years before moving to Australia. The answer is it is fixed from the date you move to Australia not from when you started drawing it. Charlie In my case I do have a CPV and a UK pension. I spend time in Australia each year but keep my UK tax status by observing their rules of the max time that you can be outside the UK. I am only in Oz for four months on this trip. Longer term I will change my tax status to Australia, possibly when and if the exchange rate improves. Peewit Quote Link to comment Share on other sites More sharing options...
KandM Posted February 6, 2011 Share Posted February 6, 2011 If you don't have all your past passports its ok just to put your current passport number and add consecutive passports held since whenever. Thats what we did and was ok. As to you SA police clearance we hope yours is more straight forward than our daughters. The SA police managed to send hers to someone in SA who had also applied for clearance, but weren't even the same name! We did eventually get that certificate about 4 months later, but in the meantime I have an email address of a guy in the UK who has a direct contact in the SA dept, he sends the application direct to him, he processes it almost immediately and sends it back, costs a bit more, but saves all the hassles that can come with anything from SA as you may know. Can PM it you if required. All the best Matt Hi Sir Matt, Thank you your the guidance but the application to SAPS has already gone! I may yet ask for the details of your contact should as it quite possible the application go missing. In the meantime fingers crossed and full speed ahead.:smile: Many thanks Quote Link to comment Share on other sites More sharing options...
Linday Posted February 6, 2011 Share Posted February 6, 2011 Can any of you knowledgeable tax aware people advise on the following please? I have read on another thread that if you sell you house for example and then become an Oz resident, and were then to keep the money in a UK account till such time as the exchange rate has improved, you are then liable to pay tax on the amount that you have gained when you do transfer. To be more specific tax on the increased amount that you have gained by not transferring the money when you became an Oz resident. Does that make sense? Our daughter left her house money here for a while, but the exchange rate was falling so itdidn't apply. If this is the case, I can't see the point of leaving it in the UK?? Quote Link to comment Share on other sites More sharing options...
KandM Posted February 6, 2011 Share Posted February 6, 2011 Can any of you knowledgeable tax aware people advise on the following please? I have read on another thread that if you sell you house for example and then become an Oz resident, and were then to keep the money in a UK account till such time as the exchange rate has improved, you are then liable to pay tax on the amount that you have gained when you do transfer. To be more specific tax on the increased amount that you have gained by not transferring the money when you became an Oz resident. Does that make sense? Our daughter left her house money here for a while, but the exchange rate was falling so itdidn't apply. If this is the case, I can't see the point of leaving it in the UK?? Linday, Yes you are correct in your assumption that you will be taxed in OZ on the growth amount of the funds left in the UK. Quote Link to comment Share on other sites More sharing options...
Guest Posted February 6, 2011 Share Posted February 6, 2011 Linday, Yes you are correct in your assumption that you will be taxed in OZ on the growth amount of the funds left in the UK. Hi Could someone quantify "growth" as I have always taken it to be the increase in value via interest and dividends, not the increase in Oz dollars due to a fluctuating exchange rate.:confused: Anyone got definitive answers, possibly Alan my be able to comment.:em0800: pete Quote Link to comment Share on other sites More sharing options...
Linday Posted February 6, 2011 Share Posted February 6, 2011 HiCould someone quantify "growth" as I have always taken it to be the increase in value via interest and dividends, not the increase in Oz dollars due to a fluctuating exchange rate.:confused: Anyone got definitive answers, possibly Alan my be able to comment.:em0800: pete Yes, I assumed that tax would be liable in Australia on any interest or growth on the actual funds. What I am not sure about is for example, instead of transferring today at an exchange rate of 1.5 but left the money till the exchange rate reached 2 (being very optimistic here!) then you would end up with more dollars than if you had exchanged at the 1.5 rate. It is this 'growth' which is due to the better exchange rate I am interested in. Quote Link to comment Share on other sites More sharing options...
KandM Posted February 6, 2011 Share Posted February 6, 2011 HiCould someone quantify "growth" as I have always taken it to be the increase in value via interest and dividends, not the increase in Oz dollars due to a fluctuating exchange rate.:confused: Anyone got definitive answers, possibly Alan my be able to comment.:em0800: pete Hi Pete, A response on the subject from Alan would be interesting. I have taken some guidance on the subject (Paid for) as I will probably leave an unsold UK house and a large investment in a UK private UK Company. I have been told that the house being my primary residence is not subject to any gains but if I sell it and bank the money then I will be taxed in A$ on any gains from the day after my arival in OZ. So if the money in the UK bank is on arrival date £450k at A$ 1.60 the Australian value is A$720k if in the next OZ tax year the UK sum increases to £463,500 (3% gross) and the the rate is now A$ 1.58 bringing the Australian value to A$ 732,330.00 it is my understanding you will pay Oz tax on $12,330.00,. As to the UK investment I have ensured that I have a formal certified value of the company prior to departing UK so that if the company gets sold at some future date I will only pay Australian tax on the growth since my arrival in OZ. Of course I will be taxed in OZ on any company dividends that get paid to me, hopefully many!! Quote Link to comment Share on other sites More sharing options...
Guest guest43653 Posted February 6, 2011 Share Posted February 6, 2011 Hi I have been watching regularly but not posted for quite a while now, we are awaiting acknowledgement and wondered if we can be put on the list. We are applying for a CPV 173 and have gone through an agent although had a hiccup of a three month delay but have been told that acknowledgement should be imminent. Keep posting everyone it is very informative and great to see people getting CO and Visa's Sue Quote Link to comment Share on other sites More sharing options...
sandch Posted February 6, 2011 Share Posted February 6, 2011 HiCould someone quantify "growth" as I have always taken it to be the increase in value via interest and dividends, not the increase in Oz dollars due to a fluctuating exchange rate.:confused: Anyone got definitive answers, possibly Alan my be able to comment.:em0800: pete I believe the currency gain would be an element of the capital gain on realisation and thus form part of assessable income in Australia. The cost base would be the value at the time you became resident I think, converted at the then exchange rate. The ATO is probably not interested in anything other than the Australian Dollar result of a capital gain event - thus currency movements form part of the gain or loss. There are allowances in the form of discounts available for captal gains tax in Oz. Whilst one should not let the tax tail wag the dog, awareness of this might help decision-making. Cheers Steve Quote Link to comment Share on other sites More sharing options...
fiz Posted February 6, 2011 Share Posted February 6, 2011 I believe the currency gain would be an element of the capital gain on realisation and thus form part of assessable income in Australia. The cost base would be the value at the time you became resident I think, converted at the then exchange rate. The ATO is probably not interested in anything other than the Australian Dollar result of a capital gain event - thus currency movements form part of the gain or loss. There are allowances in the form of discounts available for captal gains tax in Oz. Whilst one should not let the tax tail wag the dog, awareness of this might help decision-making. Cheers Steve I quite agree-its worth doing a spreadsheet of "what ifs", trying out various possible exchange rates, oz savings rates etc... I think I worked out that if the exchange rate went up by 0.15 between me leaving and exchanging my money, even after paying any CGT due, I would still be better off so at the moment I'm going to wait. However ,everybody's circumstances are different aren't they? My decision is heavily influenced by property prices in Sydney! Quote Link to comment Share on other sites More sharing options...
peewit Posted February 6, 2011 Share Posted February 6, 2011 I quite agree-its worth doing a spreadsheet of "what ifs", trying out various possible exchange rates, oz savings rates etc...I think I worked out that if the exchange rate went up by 0.15 between me leaving and exchanging my money, even after paying any CGT due, I would still be better off so at the moment I'm going to wait. However ,everybody's circumstances are different aren't they? My decision is heavily influenced by property prices in Sydney! At the time when I validated my visa the exchange rate was around 1.8 and I thought that was bad !!! I think that Sydney houses prices might fall (maybe that is wishfull thinking for me, although it would not be good for my daughter). Some sort of generic spreadsheet for working out the "what ifs" would be really handy. Maybe our 'tracker' expert could devise something as he is obviously ace with spreadsheets. Peewit Quote Link to comment Share on other sites More sharing options...
Guest Posted February 6, 2011 Share Posted February 6, 2011 I believe the currency gain would be an element of the capital gain on realisation and thus form part of assessable income in Australia. The cost base would be the value at the time you became resident I think, converted at the then exchange rate. The ATO is probably not interested in anything other than the Australian Dollar result of a capital gain event - thus currency movements form part of the gain or loss. There are allowances in the form of discounts available for captal gains tax in Oz. Whilst one should not let the tax tail wag the dog, awareness of this might help decision-making. Cheers Steve Hi Steve Thanks for the reply. My main problem is, living in a modest semi in south yorkshire, when the current exchange rate is applied to the house sale I will not have enough to buy even a modest 3 x 1 in perth. Hope it gets much better in the next 18 months, for all of us.:skeptical: This one is just to cheer anyone up.:fish: Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted February 6, 2011 Share Posted February 6, 2011 I believe the currency gain would be an element of the capital gain on realisation and thus form part of assessable income in Australia. The cost base would be the value at the time you became resident I think, converted at the then exchange rate. The ATO is probably not interested in anything other than the Australian Dollar result of a capital gain event - thus currency movements form part of the gain or loss. There are allowances in the form of discounts available for captal gains tax in Oz. Whilst one should not let the tax tail wag the dog, awareness of this might help decision-making. Cheers Steve I have been in exchange with an Australian resident individual who recently obtained a private binding ruling from the ATO which advised that the proceeds of sale of his former main residence are covered by the "private or domestic nature" exemption in the forex rules. Please remember that a private ruling is specific to the taxpayer who sought the ruling, but is nevertheless indicative of ATO thinking on the subject matter. Best regards. Quote Link to comment Share on other sites More sharing options...
sandch Posted February 7, 2011 Share Posted February 7, 2011 Hi SteveThanks for the reply. My main problem is, living in a modest semi in south yorkshire, when the current exchange rate is applied to the house sale I will not have enough to buy even a modest 3 x 1 in perth. Hope it gets much better in the next 18 months, for all of us.:skeptical: This one is just to cheer anyone up.:fish: Most of us may be in the same position, having to rent for some time to come. In our situation we would not want to give up our UK abode anyway, due to family ties there. Also see Alan's comment which is a useful indicator of how treatment may be interpreted. I believe that in Australia, your deemed main residence can be let out for up to 6 years before it loses its capital gains exemption. If the ATO is willing to allow that to apply to a foreign property that continues to be your only main residence, it would help a lot. Cheers Steve Quote Link to comment Share on other sites More sharing options...
sandch Posted February 7, 2011 Share Posted February 7, 2011 At the time when I validated my visa the exchange rate was around 1.8 and I thought that was bad !!!I think that Sydney houses prices might fall (maybe that is wishfull thinking for me, although it would not be good for my daughter). Some sort of generic spreadsheet for working out the "what ifs" would be really handy. Maybe our 'tracker' expert could devise something as he is obviously ace with spreadsheets. Peewit Flattery on this occasion will get you nowhere Phil, but thanks anyway!! Apart from the time element (lack of), there is a large element of taxation "what if" for which you'd need much expertise. A simple set of parameters involving interest rates, house prices, exchange rates would be easy enough, but would only be good for its fun value - you wouldn't want to make any moves based on it! Cheers Steve Quote Link to comment Share on other sites More sharing options...
Linday Posted February 7, 2011 Share Posted February 7, 2011 I quite agree-its worth doing a spreadsheet of "what ifs", trying out various possible exchange rates, oz savings rates etc...I think I worked out that if the exchange rate went up by 0.15 between me leaving and exchanging my money, even after paying any CGT due, I would still be better off so at the moment I'm going to wait. However ,everybody's circumstances are different aren't they? My decision is heavily influenced by property prices in Sydney! Yes, that's what we are trying to work out as well. Whether it's worth leaving the money till the exchange rate increase or if there's no pooint as any gains might be taken in tax. Quote Link to comment Share on other sites More sharing options...
MikeMavis Posted February 7, 2011 Share Posted February 7, 2011 Yes, that's what we are trying to work out as well. Whether it's worth leaving the money till the exchange rate increase or if there's no pooint as any gains might be taken in tax. Currency will do what it will as will house prices and the tax man etc etc,if you need the cash take it, if not leave it and pay the tax later (or dont declare it) ,at the end of the day we will still all go to OZ and make the best of it, We are after all spending what the kids think of as there money so what (lol). Cheers Mike. Quote Link to comment Share on other sites More sharing options...
PhoebeW Posted February 7, 2011 Share Posted February 7, 2011 Currency will do what it will as will house prices and the tax man etc etc,if you need the cash take it, if not leave it and pay the tax later (or dont declare it) ,at the end of the day we will still all go to OZ and make the best of it, We are after all spending what the kids think of as there money so what (lol). Cheers Mike. I said to my daughter.....well if we can come we are only spending your inheritance :jiggy: she replied well why not you worked for it.....I brought her up very well :biggrin: Phoebe Quote Link to comment Share on other sites More sharing options...
jtct Posted February 7, 2011 Share Posted February 7, 2011 Hi Large tin John West Red Salmon $10.45 (£6.53) at local IGA, Waitrose price £4.38 Forget it (except for special occasions) - try some of the many fresh fish items available at 'sensible' prices Large sliced quality wholemeal loaf $4.59 (£2.86) at local IGA, Waitrose price £1.32 Got a loaf in the garage (Coles) the other day for $1.58 and never pay more than 2.50 here in Adelaide 125ml Nivea spf30 sunscreen $17.80 (£11.13) at local pharmacy, Waitrose for 200ml Nivea spf30 sunscreen £6.67 Have been buying Priceline's own - lovely consistancy and smell and only $7.99 for a huge pump container I guess it is the price you have to pay for living in a top ten destination. Peewit Buying like for like does highlight some of the price differences but I am used to shopping around for cheaper alternatives and don't mind trying out new or low priced products - some even turn out to be better than the ones I'm used too Quote Link to comment Share on other sites More sharing options...
MikenSueNW3 Posted February 8, 2011 Share Posted February 8, 2011 From the Sydney Morning Herald, 7 Feb 2011:– IT'S not news vendors want to hear at the beginning of the year, but the outlook for house prices over the next 12 months is a far cry from the skyscraping highs seen in early 2010. Back then, real estate records tumbled as increased migration, first home owners' grants and declining stock levels put real heat into - some say overcharged - the market. Recent official figures back up private sector statistics that show prices flatlined in the latter half of 2010, with little real growth in the December quarter. Capital city house prices rose just 0.7 per cent in the three months to the end of the year, up 5.8 per cent on the year overall, according to the Bureau of Statistics. The ABS figures included a revision of house price gains for the September 2010 quarter; instead of a slight gain of 0.1 per cent, they showed prices actually dropped 0.3 per cent. The full story is at House prices: boom times are behind us Mike Quote Link to comment Share on other sites More sharing options...
Guest sirmatt101 Posted February 8, 2011 Share Posted February 8, 2011 Buying like for like does highlight some of the price differences but I am used to shopping around for cheaper alternatives and don't mind trying out new or low priced products - some even turn out to be better than the ones I'm used too Exactly, so Steve (Sandch) & Les please note my Avatar, I am saying no more!!! :biglaugh: Cheers Matt Quote Link to comment Share on other sites More sharing options...
Guest Posted February 8, 2011 Share Posted February 8, 2011 Exactly, so Steve (Sandch) & Les please note my Avatar, I am saying no more!!! :biglaugh: Cheers Matt Careful, don't upset the moderators, you know what happened last time. :eek::nah::wink::biglaugh: and what about bovril????:biggrin: Quote Link to comment Share on other sites More sharing options...
Les Avalook Posted February 9, 2011 Share Posted February 9, 2011 Hi Pete, A response on the subject from Alan would be interesting. I have taken some guidance on the subject (Paid for) as I will probably leave an unsold UK house and a large investment in a UK private UK Company. I have been told that the house being my primary residence is not subject to any gains but if I sell it and bank the money then I will be taxed in A$ on any gains from the day after my arival in OZ. So if the money in the UK bank is on arrival date £450k at A$ 1.60 the Australian value is A$720k if in the next OZ tax year the UK sum increases to £463,500 (3% gross) and the the rate is now A$ 1.58 bringing the Australian value to A$ 732,330.00 it is my understanding you will pay Oz tax on $12,330.00,. Hi K&M In 2 years of reading PiO and BEP and any other site with links to Oz tax law this is the first time I have read that a private individual will pay tax on a currency gain, (apart from lots of 'I believe/think' you pay tax type posts). Was your paid for guidance in the UK or a Tax official from Oz? Time and time again I have asked for anyone to give an example of a Pom who has paid tax on a currency gain (or claimed a tax loss) and have not had one taker. I would love to see the evidence of the tax in question, maybe your guide gave you a link that we could examine? Quote Link to comment Share on other sites More sharing options...
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