When sending money back to Australia, there are a variety of things you should be aware of before proceeding with a transaction. Depending on the type of money, and the size of the sum, different taxation laws and fees will apply. Being aware of this will not only save you money, but will also make the process more straightforward and devoid of any unnecessary stress.
Gifts and inheritance – tax free
Under Australian taxation law, gifts and inheritance, even when sent from overseas, are not taxable. Therefore, if the funds you are sending back to Australia fall under either of these categories, be aware that the only thing you’ll have to concern yourself with is how it is being sent. A simple bank transaction will normally suffice, but there are other options listed under the larger sums section below, which may end up saving you money on fees. It is important to be wary, however, of possible taxes imposed by the country from which the funds are sent.
Larger funds – compare fees
For larger sums of money, you’ll want to be paying the lowest fees possible. Sites such as OFX provide an easy to understand, comprehensive list of modes of international transfers and their respective fees. Through this, you can quickly determine which option will cost you the least, and still get your money home safely.
Smaller funds – look for choice
For smaller amounts that you are looking to send back to family or friends, you will want to look for a service with a minimum amount that suits your needs, and a variety of options in how to send the money. Such a service is provided by Western Union. While not the only one out there, this is the type of provider you should be looking out for. You can also transfer funds with a credit card if so desired.
When sending money home, it is important to ensure you are receiving a fair exchange rate. The easiest way to do this is to review the rate given by the Reserve Bank of Australia. This site will provide you with the most up-to-date information to ensure your provider isn’t ripping you off.
And if you need help with your Australian tax return while you’re overseas, contact our friendly team today.