Transferring money to Australia

puddles59

Hi,

Does anyone know the safest way to transfer a few bob to my daughter in Australia. TIA

Mrs OBumble

I use www.wise.com .... mmm, not sure if accounts at both ends need to be in the same name.

Does she have an account here?

SourSessions

Both of you should get revolut

puddles59

Yes she has .

peckypiper

Set up account on binance and send dollars to her that way

Mrs OBumble

https://www.boards.ie/discussion/comment/119415114#Comment_119415114

So you could transfer to her here and she could use Wise.

Or Revolut would work too.

Maybe ask in the banking forum for more details.

GerardKeating

Xoom is an option.

horse7

For a large sum using wise or currency fare, do I have to let my bank know or revenue it's for daughter to help buy a house in Australia?

GerardKeating

https://www.boards.ie/discussion/comment/122190647#Comment_122190647

define "Large"

All of the transfer company have to comply with anti money laundering rules. They will ask if it's over a certain limit.

Also "both ends" of the transfer will want compliance.

Also remember the tax implication for your daughter. Australian Revenue might want to tax your "gift" to her

horse7

There is no inheritance tax in Australia, and the transfer would be inheritance rather than a gift.

Peregrinus

https://www.boards.ie/discussion/comment/122192408#Comment_122192408

How is money you send to your daughter to assist her in buying a house an inheritance if you're still alive?

1641

Australia does not have gift or inheritance tax. (The source may well have to be declared though).

A family member living overseas wants to give me money as a gift. Do I pay Australian tax on it?

In most cases, no.  A gift from a foreign resident for tax purposes, whether it’s money or an asset, is treated the same as a gift from someone who is an Australian resident for tax purposes.  If that money or asset goes on to produce income for you once you own it, then you’ll pay tax on that income.

If the money or asset has come from a foreign trust, even if received through another person, you may need to include the amount or value of the asset in your assessable income. 

https://community.ato.gov.au/s/article/a079s0000009GnFAAU/tax-on-gifts-and-inheritances

horse7

In addition to this €335,000 tax-free threshold, the first €3,000 of gifts to a child in any year is exempt from CAT under the annual small gifts exemption. This means that each parent can give a gift to a value of €3,000 to a child (or to anyone else) each calendar year without any CAT charge arising.

horse7

Australia does not have a specific “gift tax”. Gifts generally aren't considered taxable income for the recipient in Australia. You, the giver, are also unlikely to incur any tax liability when giving a gift to a family member.20 Mar 2024

Peregrinus

Worth pointing out that if you receive a gift or inheritance from an Irish disponer, or of Irish property, then you are within the charge to Irish Capital Acquisitions Tax even if you yourself are not resident in Ireland. In this case there may be a nil liablity unless the amount of the gift is very large (or unless the daughter has previously received very large gifts from her parents).

And, for completeness, though it's not relevant here, in the case of an inheritance the executor/personal representative who is distributing the estate can be (and will be) pursued by the Revenue in relation to the tax liablity of a beneficiary, if the beneficiary doesn't pay it. So in general CAT needs to be sorted out before assets get distributed to people who have a CAT liability.

rustyfrog

I don't think Galway City or County have any specific tax arrangements with Australia that would impact this transfer. ;)