Leslie Massey
There are several ways to bring money from overseas into Australia, including electronic transfers, international money orders, and bank drafts. However, transferring money across borders can be complex due to tax implications and regulatory requirements, such as reporting large sums of money under Australia's Anti-Money Laundering and Counter-Terrorism Financing Act 2006. To ensure compliance and avoid penalties, individuals should be aware of their obligations when moving money into Australia, including declaring cash and non-cash monetary instruments exceeding a certain threshold.
| Characteristics | Values |
|---|---|
| Amount limit | There is no limit to the amount of physical currency that may be brought into Australia. |
| Declaration | Monetary instruments of AUD10,000 or more must be declared when entering Australia. |
| Tax | If tax has already been paid on the income in another country, it is unlikely that tax will need to be paid again in Australia, as the country has double taxation agreements with many countries. |
| Monetary instruments | Cash and non-cash forms of money, including cheques, promissory notes, traveller's cheques, bearer bonds, money orders and postal orders. |
| Online declaration form | The online declaration form must be completed before passing through customs when arriving in Australia. |
| ID documents | Your bank or money transfer service may ask for your ID documents, the source of the payment, and the recipient for amounts of AUD10,000 or more. |
| Payment methods | International money transfer companies, such as Wise, Remitly, Ria, Western Union, XE, Revolut, and PayPal. |
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What You'll Learn
Declare cash and non-cash forms of money over AUD10,000
When bringing money into Australia, you must declare cash and non-cash forms of money in Australian or foreign currency if the combined value is AUD10,000 or more. This includes monetary instruments such as traveller's cheques, cheques, money orders, postal orders, bills of exchange, promissory notes, bearer bonds, and other negotiable instruments. You must also declare if you are carrying money for someone else, providing information about yourself and the person you are carrying the money for.
It is important to note that you cannot avoid your obligation to declare money by making multiple trips with amounts less than AUD10,000 or by sharing money between travellers in a group (structuring). Penalties for not reporting monetary instruments of AUD10,000 or more include fines and imprisonment.
To declare cash and non-cash forms of money over AUD10,000, you need to complete an online declaration form before passing through customs when arriving in Australia. The form can be found on the AUSTRAC (Australian Transaction Reports and Analysis Centre) website. You will need to provide information such as your personal details, the source of the funds, and the purpose of the transaction. It is recommended to save a copy of your submission receipt, as you may need to show it to an Australian Border Force or police officer.
When transferring money to Australia from overseas, your bank or money transfer service might ask for your ID documents, information about the source of the funds, and the recipient. This is because they are required to report transactions of AUD10,000 or more to AUSTRAC. However, reporting a transaction to AUSTRAC does not necessarily mean that tax is payable on it. Whether tax is payable depends on various factors, and you should seek professional advice to ensure compliance with tax laws.
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Understand tax implications of transferring money
Understanding the tax implications of transferring money to Australia from overseas is essential. While international money transfers (IMTs) to Australia are not directly taxed, the Australian Taxation Office (ATO) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) monitor these transactions to ensure any undeclared income is reported. It is not the transfer itself that triggers a tax event, but rather the origin of the money and whether it is linked to taxable income, such as earnings from foreign investments, business activities, or employment.
If you are an Australian resident, you must report any overseas income on your Australian tax return, even if the money never leaves its country of origin. Any pensions or super payments from outside Australia must also be declared. Be sure to report your income in the correct tax year, whether or not you use the money in Australia. Good record-keeping can help to stay compliant. If you're unsure, it may be worth seeking advice from a tax professional.
In general, if you have paid tax on income in another country, you are unlikely to have to pay tax again when you bring the money into Australia, as Australia has double taxation agreements with many countries. However, for payments of AUD10,000 or more, or an "international electronic funds transfer instruction" (IFTI-E) of any amount, you or the company processing the payment might have to report the transaction to AUSTRAC. The details you provide will be checked against the local records of the money's origin. So, if you have paid local tax, the Australian authorities will check that you have paid all your dues. Then, as long as it is a country with which Australia has a double tax treaty, you shouldn't need to pay tax twice.
If you are transferring cryptocurrency to Australia, capital gains tax (CGT) may apply if you sell or dispose of crypto assets. Make sure you report any gains or losses from cryptocurrency transactions, whether or not they are transferred to Australia.
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Choose a money transfer service
When choosing a money transfer service, it is important to consider the legal, tax, and safety requirements of large international money transfers. For instance, if you are transferring the equivalent of AUD10,000 or more, your bank or money transfer service might ask for your ID documents, information about the source of the funds, and the recipient. This is because, in some cases, you or the company processing the payment may have to report the transaction to AUSTRAC (the Australian Transaction Reports and Analysis Centre). Therefore, it is important to choose a reputable money transfer service that is transparent about its fees and reporting processes.
There are several popular money transfer services in Australia, including Wise (formerly TransferWise), Remitly, Ria, Western Union, XE, and Revolut. These services are often competitively priced and able to transfer money directly into the recipient's bank account or to a local branch for pickup. The cost of using these services will depend on the country, the currency being sent, and the currency in which it will arrive. For example, Wise states that its fees start at 0.1% of the transferred amount. In general, the more money you send, the lower the fee.
It is also possible to transfer money electronically from your Australian bank account to an overseas bank account using online or mobile banking, or by visiting a branch. The main benefit of bank transfers is that they are quick and convenient, as they can be done directly from your bank account without signing up for any additional services. However, banks may charge higher transfer fees and offer less competitive currency exchange and conversion rates.
If you need the money to arrive quickly, you may opt for a same-day or next-day service, but these usually come with higher costs. Some services can deliver money overseas in minutes, but it is important to check the fees and conversion rates to ensure you are getting a good deal. It is also worth noting that posting an international money order overseas can take longer and sometimes be more expensive than an online transfer.
Before choosing a money transfer service, it is important to research your options and consider your individual needs, the services offered, and the associated fees. Additionally, checking if the company is a member of the Australian Financial Complaints Authority (AFCA) can provide peace of mind, as this body can be turned to if something goes wrong.
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Declare money received from overseas within 5 business days
When receiving money from overseas, you must declare cash and non-cash forms of money in Australian and foreign currency if the combined value is AUD10,000 or more. This includes monetary instruments such as money orders, postal orders, and similar negotiable instruments. You can complete the online declaration form before passing through customs when arriving or departing Australia, and you must do this within five business days of receiving the money. If you are unable to complete the online form, you can request a paper version from an Australian Border Force or police officer, who can help you complete the declaration.
It is important to note that you may face penalties, including fines and imprisonment, for not reporting monetary instruments of this value when receiving money from overseas. To avoid any issues, make sure you declare these transactions within the specified time frame and provide any additional documentation that may be required.
The declaration process is straightforward and can be completed online. You will need to provide details about the source of the funds, the amount, and the recipient. This information is necessary to comply with Australia's international money transfer regulations and to ensure the security of the transaction.
It is worth mentioning that you don't need to declare money received from overseas through a bank or remittance service provider (money transfer business). However, for amounts of AUD10,000 or more, your bank or money transfer service might ask for your ID documents, information about the source of the funds, and the recipient. This information is collected to comply with reporting requirements to AUSTRAC (the Australian Transaction Reports and Analysis Centre).
In summary, when receiving money from overseas, it is important to be mindful of the declaration requirements, especially for large amounts. By completing the necessary declarations within five business days and providing accurate information, you can ensure compliance with Australia's international money transfer regulations and avoid any potential penalties.
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Report physical currency and bearer negotiable instruments (BNIs)
When bringing money into Australia, you must declare cash and non-cash monetary instruments if the combined value is AUD10,000 or more. This includes physical currency and bearer negotiable instruments (BNIs). Monetary instruments include both Australian and foreign currency.
BNIs are non-cash monetary instruments that may contain the instruction "pay to the bearer". Common examples include cheques, promissory notes, traveller's cheques, bearer bonds, money orders, and postal orders. It is important to note that there is no monetary threshold for a BNI, and even if it has no face value (e.g., a blank cheque), it needs to be declared if requested by a Customs or police officer.
Cross-border movement reports must be submitted to AUSTRAC (the Australian Transaction Reports and Analysis Centre) when entering or departing Australia with monetary instruments, including BNIs, with a combined value of AUD10,000 or more. These reports can be made through your AUSTRAC Online account and there are no fees for declaring physical currency or BNIs. The report must include information about the person carrying the monetary instrument, as well as the sender and recipient.
If you are carrying monetary instruments for someone else, you must submit a CBM-MI report if the value is AUD10,000 or more. It is important to note that sharing physical currency between travellers in a group to avoid reporting is illegal. This practice, known as "structuring", involves dividing a reportable amount of currency among travellers so that each person is carrying less than the reporting threshold.
Failure to declare monetary instruments, including BNIs, when entering or leaving Australia can result in penalties, including prison and/or a fine. Therefore, it is important to comply with the reporting requirements to avoid legal consequences.
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Frequently asked questions
There are several ways to transfer money from overseas into Australia. You can use an international money transfer service, which allows you to send money to a bank account internationally. Common money transfer companies in Australia include Wise (formerly TransferWise), Remitly, Ria, Western Union, XE and Revolut. Alternatively, you can transfer money electronically from your Australian bank account to an overseas bank account using online or mobile banking.
Yes, you may need to declare money that you transfer from overseas into Australia. If you are transferring physical currency of AUD10,000 or more, you must declare it to AUSTRAC (the Australian Transaction Reports and Analysis Centre) when entering or leaving Australia. You can submit an online declaration form before you pass through customs. Additionally, if you are transferring cash of AUD10,000 or more, your bank or money transfer service might ask for your ID documents and information about the payment.
Tax laws regarding money transferred from overseas into Australia can be complex, and it is recommended to consult a tax professional for personalised advice. Generally, if you have already paid tax on the income in another country, you are unlikely to have to pay tax again when bringing the money into Australia, as Australia has double taxation agreements with many countries. However, there may be instances where tax is still applicable, such as when the transferred amount is related to your income-earning activities or when it exceeds certain thresholds.
