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ashokmoorthy(I'm new)I'm new
1 Sept 2022

Greetings Team,


Hope everyone is doing well . I am a resident of Australia from past few years. I am currently looking at buy a property and have questions about bringing money back in Overseas , I can seem to only answer partially from the forums here and the ATO website.

There are few queries regarding it:

  1. My relatives wants to gift me some money overseas, Can I have them transferred to my Australian account and will it be considered as a gift .
  2. I have some overseas cash which needs to be inherited can I transfer those .
  3. I have overseas cash earned when I was resident of overseas and was not residing in Australia. Can I transfer those?

What are the tax implications in me transferring funds for the points above from Indian account to an Australian bank account for my use in Australia to buy property?

 

It will be great to know before I make a final decision on me to manage funds.

Many thanks,

42,215 views
5 replies
42,215 views
5 replies

Most helpful response

Most helpful reply

GabbyATO(Community Support)Community Support
1 Sept 2022

Hi @ashokmoorthy,


To answer each of your questions:

  1. Your relatives can transfer money to your Australian bank account and it will be considered a gift, which you don't need to pay any tax on. If they're transferring large amounts of money, it would be a good idea to keep a record to show that the income is gifted. This can just be a letter or email from your relative stating that the money is a gift.
  2. If this money you want to transfer is from an inheritance, the same rules apply. It won't be considered taxable.
  3. Transferring money from one bank account to another is a private arrangement, so this income won't be taxable.

For all of the situations above, if the money goes on to produce income (for example, bank interest in your Australian bank account), then this will become part of your taxable income.


We also have an article about tax on gifts and inheritances that answers some other common questions on this issue.

All replies

Most helpful reply

GabbyATO(Community Support)Community Support
1 Sept 2022

Hi @ashokmoorthy,


To answer each of your questions:

  1. Your relatives can transfer money to your Australian bank account and it will be considered a gift, which you don't need to pay any tax on. If they're transferring large amounts of money, it would be a good idea to keep a record to show that the income is gifted. This can just be a letter or email from your relative stating that the money is a gift.
  2. If this money you want to transfer is from an inheritance, the same rules apply. It won't be considered taxable.
  3. Transferring money from one bank account to another is a private arrangement, so this income won't be taxable.

For all of the situations above, if the money goes on to produce income (for example, bank interest in your Australian bank account), then this will become part of your taxable income.


We also have an article about tax on gifts and inheritances that answers some other common questions on this issue.

Liked by ashokmoorthy
ashokmoorthy(I'm new)I'm new
1 Sept 2022

@GabbyATO Thanks a lot for the reply and that answers many of my queries. Appreciate the response. I forgot to ask another scenario:


  1. I had transferred a considerable amount of AUD all taxed amount into INR(Indian Rupees) into my spouse's Indian account. Can I transfer that back from INR into my account and will that be considered taxable?
  2. And I am going to use exchange services like Wise,westernunion to transfer. Hope that doesnt affect anything.


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What are the tax rules around transferring money from India to Australia? | ATO Community