Guest spray21 Posted May 13, 2006 Share Posted May 13, 2006 We're moving to Oz next spring and are trying to work out what is the best thing to do with our savings. We both have ISAs here which I have discovered we can keep even when we are in Oz (just can't pay any more in). Obviously can then transfer the interest income into an Aussie account each year, should we need it. My question is whether there is something like an ISA in Australia that we could put all the money into? It would be about £10000 altogether. We want to make as clean a break as as possible with the UK, so we're selling the house and taking a lot of that capital with us - but what is the best thing to do with our savings? The tax-free interest seems too good to give up! All advice much appreciated! Link to comment Share on other sites More sharing options...
Guest ABCDiamond Posted May 14, 2006 Share Posted May 14, 2006 No ISA's here. In fact Tax Free Interest does not exist here. As far as I am aware. Also bear in mind the following. Australia taxes you on your World Wide Income. Any interest you get, whether Tax Free in the UK or not, is taxable in your Australian Return. Also... Premium Bond Winnings are taxable here. This is based on the Australian Rule that gambling is non taxable, but investments are taxable, and Premium Bonds are classed as an investment. (ie: They are provided by the UK National Savings & Investments.) Link to comment Share on other sites More sharing options...
Guest scoop Posted May 14, 2006 Share Posted May 14, 2006 Good old John Howard! SCoop x Link to comment Share on other sites More sharing options...
Guest forshac Posted May 14, 2006 Share Posted May 14, 2006 Ok if that's the case regarding income earnt on savings.. What are most of you planning to do with your cash? also how does OZ know what is interest earnt? (sorry to be thick). We are planning to open a AUS $ account here in the UK and when we need money transfer from £ and then chaps money over via the AUS $ account... Reason being, until I find a property we like, we don't what to transfer everything into AUS $..Are we doing it all completly wrong? any suggestions would be great Link to comment Share on other sites More sharing options...
Guest spray21 Posted May 14, 2006 Share Posted May 14, 2006 forshac that's exactly the thought process that we're going through! I told other half that Oz tax income world wide, he asked how will they know that we have ISAs over here? I presume at some point we will have to declare everything that we have? It could then be tricky to just "find" a whole load of money! We're planning to sell our house here, which with a bit of luck will clear about £35,000 after the mortgage is paid off. (That sounds so good!) Plus about £10,000 that we have in ISAs already. I'm sure we'll need to take some of that over with us, as although other half has a job to walk into, I do not. But how much to take? And what to do with the rest? Link to comment Share on other sites More sharing options...
Guest forshac Posted May 14, 2006 Share Posted May 14, 2006 Exactly... We want to keep most of the funds here until its needed, as I fear losing due FX exposure.. Maybe ABC can advice us here?? Link to comment Share on other sites More sharing options...
Guest spray21 Posted May 14, 2006 Share Posted May 14, 2006 I feel so clueless about this that I'd listen to advice from just about anyone! I've just found an article that says aussie dollar is on a high at the moment - so I suppose it make sense to wait until it is weak and the pound is strong. But then I'm not going to base my life around FX rates! My feeling at the moment is that it might be best to keep the majority of our cash in the UK, keep an eye on the FX rate and the realestate where we are, then transfer it across when we need it - provided that FX isn't ridiculous. It's all a gamble though isn't it?! Where are you headed for, forshac? Link to comment Share on other sites More sharing options...
Guest forshac Posted May 14, 2006 Share Posted May 14, 2006 :shock: Mind boggling I know..Sounds at though you and I are planning on doing the same... We are going to Melbourne - Victoria, Narre Warren early August, just sorting out all the tasks ahead now. Just want to exchange on the house and then I shall book the flights... What about you guys where and when and why, jusy to be nosy Link to comment Share on other sites More sharing options...
Guest Nelson Posted May 14, 2006 Share Posted May 14, 2006 My bank manager advised me that you cn 'filter' money through when the currency exchange rate is best. So, for example, you can choose to send money only if the rate is not lower than blah, blah, blah. It automatically stops if that is the case and resumes when it rises again. I bank with Lloyds TSB and they have been vey helpful (they always are when you've GOT money!!!) but it may be something you want to enquire about... Link to comment Share on other sites More sharing options...
Guest spray21 Posted May 14, 2006 Share Posted May 14, 2006 Hmmmm... interesting. Yes I definitely should talk to my bank. Think should probably get a proper financial adviser too- it's getting a bit beyond me! Forshac - we're headed for the Hunter Valley. Fortunately the confusion of choosing was taken away from us as that's where boyf's job offer is for. A place called Singleton, about an hour inland from Newcastle. So I'm thinking we might live in the middle - half an hour commute for him and gives me access to Newcastle jobs. It won't happen until march next year though and I'm sure i'll burst with anticipation before then! I'm so excited! Link to comment Share on other sites More sharing options...
Guest ABCDiamond Posted May 15, 2006 Share Posted May 15, 2006 x Good old John Howard! SCoop x Some times I feel sorry for John Howard He gets blamed for everything Making this choice is very difficult. When I came out, I also left some in the UK, and after 4 years I am down about 10%, compared to what I would have got if I had it in my account here in Australia. This was a compound effect of lower interest rates in the UK, and the FX rate changes. I could cut my losses and bring it over now, but I keep hoping it will recover in my favour If some of us could predict future exchange rates, then fortunes could be made. Someone said "it is all a gamble", and I agree with that How do the ATO know if you have any earned interest in the UK ? I honestly don't know. Keeping a UK credit card does allow instant access to spending your funds in the UK. Link to comment Share on other sites More sharing options...
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