• Australia
    • Moving to Australia Process
    • Become an Australian PR then Citizen
    • Australian Age Pension and Benefits
    • Buying a house in Australia
    • Having a baby in Australia
    • Which city to move to in Australia
    • Pre-schools and Kindergartens
    • Schools in Australia
    • Driving and Licences in Australia
    • Moving to Adelaide (SA)
    • Moving to Canberra (ACT)
    • Moving to the Gold Coast (QLD)
    • Moving to New South Wales
    • Moving to Sydney (NSW)
    • Moving to Tasmania
    • Moving to Victoria
    • Moving to Melbourne (VIC)
    • Moving to Perth (WA)
  • Health
    • Australian Health Care System
    • Medicare Australia
    • Having a baby in Australia
    • Australian Age Pension and Benefits
    • Private Health Insurance
  • Jobs
    • Jobs in Australia
    • Australian Tax
    • NZ Student Loan?
    • Increase Your Success in the OZ Job Market
    • Things you shouldn’t put on your resume
  • Money
    • Everything Money
    • Open an Australian Bank Account
    • Foreign Exchange/Money Transfer
    • Australian Mortgage
    • Australian Tax
    • Buying a house in Australia
    • First Home Owners Grant
    • Australian Age Pension and Benefits
    • NZ Student Loan?
    • XE Money Transfer
    • Currency Converter
  • Moving
    • Moving Company to Australia
    • Moving to Australia Checklist
    • International Pet Transport
    • Moving to Australia Process
  • Real Estate
    • Renting and accommodation
    • Buying a house in Australia
    • Australian Mortgage
    • First Home Owners Grant
    • New Utility Connection Service
  • Visas
    • Australian Visa
    • Become an Australian PR and Citizen
    • SCV Visa Exclusions
    • Criminal Conviction?
    • Moving to Australia FAQ
Moving to Australia

Do you have to pay tax on money transferred from overseas?

Multiple factors come into account whether or not you need to pay tax on money you transfer overseas.

  1. The source of the money: gift, inheritance, sale of a home, etc.
  2. The tax laws of both countries (where the assets originate from and where they are being sent, e.g. New Zealand to Australia.)
  3. The amount of money you’re transferring.
  4. Your residency status.

Please be advised that while we do our best to keep this information up to date, OFX does not provide tax advice, and you should always consult a tax professional about your individual circumstances.

Below you will find information on the below:

  • What are the tax implications of sending money overseas?
  • Transferring large sums of money abroad
  • Moving retirement funds overseas
  • Sending money or financial support to family overseas
  • Making tax payments to foreign governments

What are the tax implications of sending money overseas?

Generally speaking, if you are transferring your own money to yourself, you will probably not be required to pay additional taxes on the money. For example, if you are a New Zealander who has moved to Australia and you want to move your savings to Australia, you will usually not be obliged to pay additional tax, as you have already been taxed on your income. Transferring existing money to your spouse is also not usually taxed in most countries.

Once you become a legal resident of a new country, income you earn from overseas will often be taxed, and that income can include capital gains, pension payments, and employment income. Because all countries have different tax structures, it’s best to research the specific countries involved before transferring. Here is a good article on tax obligations of kiwi’s living in Australia: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.

Transferring large sums of money abroad

If you’ve received a hefty inheritance or have sold a property overseas and wish to transfer the money, various taxes may apply such as inheritance tax, capital gains tax or gift tax. However, once those taxes are paid in the local jurisdiction where the assets originate and the funds are yours, you may not have to pay tax again to move the money overseas.

Many, but not all, countries have double-taxation treaties in place, which protect citizens from paying tax on money twice. However, you may be required to provide proof that you have paid the tax, e.g. estate or gift tax to the foreign government.

While you may not need to pay tax on large sums of money being sent abroad, some governments will require you to file a declaration that you are bringing the money into the country. Failing to declare the assets could result in a fine. Again, contact a professional or check the websites of the local tax authorities to see what you need to do to comply.

Moving retirement funds overseas

Pension or retirement accounts often have complicated tax limitations regarding early withdrawal or using the money to fund investments. You should check the local tax laws that apply in both jurisdictions when moving your pension overseas.

There may be different limitations depending on the amount you are planning to transfer, e.g. the entire balance of your retirement account or smaller monthly payments of $5,000.

If you are receiving regular payments from a pension abroad and want to reduce the costs associated with converting the money to your local account, use OFX to get better exchange rates and lower fees on recurring transfers.

Sending money or financial support to family overseas

Most countries make a distinction between financial gifts and other types of support for family overseas. For example, when paying tuition for study abroad, it is unlikely that you will be taxed on such an expenditure, especially if the child is considered a dependent for income tax purposes.

However, if you simply want to give your mature son or daughter a lump sum of money, it may be considered a gift and there could be tax implications. We recommend you check with your accountant to determine what if any tax obligations you both have.

If you are transferring money for a medical procedure or other health care costs associated with aging relatives, these are not usually considered gifts, but different governments have different guidelines for determining if tax is required.

Making tax payments to foreign governments

If your residency status changed during the tax year or you need to pay capital gains tax on assets sold overseas, you can use OFX to transfer money swiftly and securely while saving money on bank fees and margins. Banks often charge a margin of up to 5% on the daily exchange rate in addition to hefty transaction fees, so on a $10,000 transfer, you could pay $500 to your bank. This is too much.

When you are ready to make your overseas money transfer, use OFX so you don’t get stung by high bank fees and margins. Their exchange rates are consistently competitive, so you can keep more of your hard earned cash.

Foreign Exchange/Money Transfer/Moving money to Australia from New Zealand/OFX Global Money Transfers (NZForex)/Open an Australian Bank Account

You Might Also Like...

UNO home loans

Australian Mortgage

Documentation Needed when you move to Australia

Documentation needed when moving to Australia

Australia borders open

Australia opens to international tourists after Covid Pandemic

NZ buying property in Australia

NZ buying property in Australia

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

About MTA Editor

Moving to Australia Editor

Hi… I’m JJ Smith.

I’m the creator and editor of Moving to Australia and have been for 10 years! I know everything there is to know about New Zealanders moving their families and life to Australia. Either from first hand experiences and research or through the questions from visitors to this website… and I’m here to help!
Continue Reading

Join Our Monthly Newsletter
Please wait...

Thank you for subscribing!

Categories
  • Blog
  • Destinations
  • Driving and Licences
  • Health
  • Jobs
  • Money
  • Moving
  • MTA Info
  • Must Have Services
  • News
  • Real Estate
  • Schools
  • Visas
Recent Posts
  • Australian Mortgage
  • Documentation needed when moving to Australia
  • Australia opens to international tourists after Covid Pandemic
  • NZ buying property in Australia
  • Filing your Australia Tax Return
Connect
Help Others

Share your experiences with other kiwis planning the move to Australia.

Email any advice, tips and experiences to help@movingtoaustralia.co.nz.

Connect

Blog Categories

  • Blog
  • Destinations
  • Driving and Licences
  • Health
  • Jobs
  • Money
  • Moving
  • MTA Info
  • Must Have Services
  • News
  • Real Estate
  • Schools
  • Visas

Latest Posts

  • UNO home loans

    Australian Mortgage

    by
    JJ Smith
    , on
    Apr 4, 2022
  • Documentation Needed when you move to Australia

    Documentation needed when moving to Australia

    by
    JJ Smith
    , on
    Mar 3, 2022
  • Australia borders open

    Australia opens to international tourists after Covid Pandemic

    by
    JJ Smith
    , on
    Feb 23, 2022
  • NZ buying property in Australia

    NZ buying property in Australia

    by
    Taxback
    , on
    Aug 15, 2021
  • Filing Your Australia Tax Return

    Filing your Australia Tax Return

    by
    JJ Smith
    , on
    Jun 15, 2021

About MTA Editor

Hi… I’m JJ Smith.

I’m the creator and editor of MTA. I started this blog in 2008 when my family and I moved to Australia. I know everything about New Zealanders moving their life to Australia. Either through our research, first hand experiences or the questions I've helped visitors with.

I learnt so much when we moved our family from Auckland New Zealand to the Gold Coast (short term accommodation x 3) and then Brisbane (family friends, then long term rental). I sold my website business in NZ before the move. I was pregnant when we moved, so it was easy for me to setup this site and share my knowledge to help others, save them time, money and make their move stress-free.

© 2008 - 2020 Copyright Cybersmith Ltd. All content is copyright.

Design by ThemeShift.