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bob1306(Initiate)Initiate
30 Oct 2025

ATO expects Australian taxpayers who become foreign residents for tax purposes to contact their bank and advise that they are living overseas, so that the bank can withhold 10% tax on interest earned on their accounts. However, Ubank does not have this feature for their accounts - the address has to be in Australia and they cannot arrange to withhold the tax on interest.

Is this case of non-compliance on the part of the bank?

Is it OK in this case to pay tax on interest earned after tax return assesment is received, or is there some other arrangement possible?

299 views
4 replies
299 views
4 replies

All replies

knaresbro(Devotee)Devotee
30 Oct 2025

Given Ubank does indeex require account holders to have an Australian residential address, @bob1306 , would you not need to close the account and choose another financial institution?

Liked by sydauthor
bob1306(Initiate)Initiate
30 Oct 2025

That’s pretty much my question - do I have to close my Ubank account according to ATO rules because tax cannot be withheld by the bank, or can I pay the tax after the tax return assesment, or some other way?

bob1306(Initiate)Initiate
31 Oct 2025

@DamienATO

Ubank has advised that the only case when they witholdi tax is when the TFN is not provided, which is not my case. So, it looks like I have 2 options:

  1. If it is acceptable by ATO rules, to pay the tax on interest after the ATO assessment of my tax return
  2. to switch to another bank which supports withholding tax for foreign residents for tax purposes.

My preference is the first option for various practical and financial reasons, but I want to comply with ATO rules in the first place.

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Ubank does not support withholding tax on interest for foreign residents for tax purposes | ATO Community