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Guest Donna Doo

46.5% Tax deducted on Non Resident Savings

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Guest Donna Doo

Hi,

 

We’ve transferred some money to our Australian bank account, taking advantage of the recently good exchange rates. Unfortunately 46.5% of the interest is being deducted in tax as we’re non residents. ohmy.gif The bank is legally obliged to deduct the tax as we are unable to provide them with a tax file number.

 

We’re going out in Jan and hoping to get PR granted before then. thumbup.gif

 

Perhaps we could talk with an Australian Financial Consultant or transfer the money back to the UK.

 

Any advice appreciated!

 

Thanks,

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If you have provided a UK address the bank should only be withholding tax at 10%.

 

Have you given the bank an Australian address?

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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If you have provided a UK address the bank should only be withholding tax at 10%.

 

Have you given the bank an Australian address?

 

Best regards.

 

Thanks Alan, you have put my mind at rest -I was sure that because we were still in the UK we would not be charged full tax on our interest!

 

Felicity


Felicity + Michael - We're 'Pozzies' - Happy and Lovin' it!

Melbourne since September 07

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Not a problem.

 

Don't forget that the interest income is likely to be assessable in the UK though.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest chris&dave

Hi Donna, we had a similar problem. When we were in Aus last November we opened bank accounts and informed the staff that we were non-resident. They agreed that they should just stop us 10% withholding tax. However, when looking at my first month's interest, they had stopped me the 46.5% tax. I wrote to them twice complaining about this but they said they cannot give it back to me, even though it was their fault and I had to wait until the end of June before I could reclaim it from the tax authorities. So you need to get onto the bank pretty quickly and ensure they switch you to non-resident status.

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That's OK assuming you have moved to Australia by the end of the Aussie tax year in which the bank incorrectly deducts the 46.5% tax. What if you haven't?

 

I say the bank should compensate you. They might then learn from their mistake.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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