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Money transfer from overseas family

Newbie

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Replies 5

Hi my mother selling her asset in overseas and would like transfer the money to my bank account before they resettle in Australia. Will I need to pay tax for the money I receive from overseas? Do I need to report the money belongs to my mother and will transfer the money back to her once she set up a bank account in the future when she arrive Australia? Thank you
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Most helpful response

ATO Community Support

Replies 0

Hi @Tscaf 

 

Thanks @wonka5 for helping too. We have a good post in community worth looking at on this as well - Transfering funds from overseas and tax implications. Our information on Moving to Australia permanently your mum might find useful also.

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Devotee

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You would not need to pay tax on the deposit of money, however if the money earns interest in your bank account you will need to pay tax on those earnings.

Most helpful response

ATO Community Support

Replies 0

Hi @Tscaf 

 

Thanks @wonka5 for helping too. We have a good post in community worth looking at on this as well - Transfering funds from overseas and tax implications. Our information on Moving to Australia permanently your mum might find useful also.

Devotee

Replies 2

Hi @Tscaf 

 

Whilst the answers everyone has provided are helpful, there is something else that you need to be made aware of.

 

When large sums of money are transferred into or out of Australia they are reported to " AUSTRAC ", whom oversee the Anti Money Laundering provisions.   They also share the information gathered with other government agencies such as the ATO.

 

So what I suggest is that you and your parents keep records of the sale of the house and where the funds were intially deposited and then how and when they were transfered to you.

 

Chances are you will not be asked, but if you are asked you will need to be able to demonstrate where the funds came from and without any reasonable evidence you could be taxed on those funds by the ATO, as they have to power to issue default assessments on any amounts that they consider are undisclosed assessable income and then the burden on proving that those funds are not assessble is on you!

 

I hope this helps

 

Stay Safe !!!

Newbie

Replies 1

Thank you Smiley Happy I called the bank and they advised the same as well. With the current situation in Hong Kong my family will have to make their decision to sell the house now or later. Good to know before they send their money over just in case anything happen.

Devotee

Replies 0

@Tscaf 

 

Its always best to cover yourself for all possiblities espcially under the circumstances and your bank seems to know what they are talking about, which is great to hear.

 

All the best to your family in Hong Kong!!

 

Stay Safe