Taking Money To Australia

If you have a substantial sum of money to take to Australia, an ill-researched choice of transfer method could leave you thousands of dollars poorer.

Many people opt for a direct electronic transfer from their current bank to a bank in Australia. Unfortunately, banks are notorious for taking too much of your money when they do this.

Foreign exchange markets operate on a mid-market rate. The closer you get to the mid-market rate, the better the deal you have got. Depending on who transfers your money, you might find you are 1 or even 2 percent further from the mid-market rate than you need be. Someone who takes 2 percent of your $300,000 transfer leaves you $6,000 poorer than you need have been.

Usually, specialist foreign exchange dealing companies offer rates closest to the mid-market rate. (You won't ever get mid-market rate. The person exchanging your money has got to make a profit. Don't begrudge them this, providing they're offering you a fair rate.) Do make sure you are dealing with a company that has been around for a few years.

Don't take anyone's word for it that they are the cheapest. Don't accept their claims at face value. I have obtained simultaneous quotes from several foreign exchange companies and their rates varied significantly. If you have a reasonably large amount of money to transfer, I'd advise you to do likewise. Then pick a reputable company that gives you the best quote. If you are worried that your exchange rate is going to get worse against the Australian dollar, a number of companies will allow you to lock in today's rate. You'll need to pay a deposit to do this.

If you are offered a good rate from a specialist company, you can dangle this in front of your bank. Some banks are flexible and will do their best to match the rate you've been offered elsewhere.

When you actually arrive in Australia, if you arrive with more than A$10,000 in cash, you must declare it to Australian customs at the airport after you land Australia.

No tax is payable on money you bring to Australia.

Once you have arrived, you become a tax resident of Australia. You will then be liable for tax on income and capital gains from any investments in Australia and any you have left overseas.

Australian Government criteria state that you will be an Australian tax resident if you have:

1. always lived in Australia

or

2. moved to Australia and live here permanently

or

3. been in Australia continuously for six months or more and for most of the time you have been:
>>> in the one job and
>>> living in the same place

or

4. been in Australia for more than half of the financial year, unless
>>> your usual home is overseas, and
>>> you do not intend to live in Australia.