tax query

[brooks]

I am coming to Oz soon and applying for residency.

 

Questions: a) if I put money into an Australian bank will my interest be taxed in UK and Oz till I get residency? b) I have been told that 'foreigner's' putting money into an Oz bank will be taxed at 50% - is this true? c) would it be best to put my money into a long term fixed rate account as interest rates seem to be falling? Anyone got a crystal ball? and finally:

 

............. with regard to the crystal ball - shall I move my money in case the £ falls further - or wait, hoping that the £ excahnge rate will get better for me!!!!

 

sincerely,

 

Confused

[scuffythetugboat]

Everyone will be taxed at the highest rate on all interest earned in a bank account until they provide their tax file number. The tax taken out of my account was refunded back into the account as soon as I gave them my tax file number when I arrived in the country. I do not have a crystal ball so I can't answer the other questions.

[brooks]

thanks

[Alan Collett]

Everyone will be taxed at the highest rate on all interest earned in a bank account until they provide their tax file number. The tax taken out of my account was refunded back into the account as soon as I gave them my tax file number when I arrived in the country. I do not have a crystal ball so I can't answer the other questions.

 

 

Not quite. If you have a UK address tax on interest should be withheld at 10%.

 

Note that this interest may well be subject to additional tax in the UK => consider the need to submit a UK tax return if you are in receipt of Aus source interest income.

 

Once you are in Australia and provide an Aus address tax will indeed be withheld at the highest rate of tax (46.5%) if you do not advise a Tax File Number => provide a TFN!

 

See also http://www.gmtax.com.au/faqs/

 

Best regards.