Transferring money ahead of immigrating, selling a property or inheriting money from family overseas? Whatever your reasons for sending money to Australia, there's a lot to consider.
You can't avoid the laws and legal paperwork that go along with transferring large amounts of money. So before you move your cash into Australia, familiarise yourself with these laws and regulations.
If you're receiving more than AUD$10,000 or a foreign currency equivalent, this will need to be reported to the Australian Transaction Reports and Analysis Centre (AUSTRAC). This is to help reduce the risk of money laundering or terrorism financing.
Any amount of money transferred into Australia as international funds transfer instruction (IFTI) must have an IFTI-E report submitted within 10 business days. Some money transfer providers, which often solely send money between countries, sometimes have reporting thresholds as low as AUD$1,000.
Outside of large sums needing to be reported to AUSTRAC, you will also need to be aware of any tax implications of someone sending a large amount of money to you in Australia. Depending on the reason why it has been sent, then you may be on the hook for taxes regulated by the Australian Taxation Office (ATO).
Whether or not you need to pay tax on money transferred from abroad will depend on the source of the funds. To help you out, we've broken these down into when a transfer is a taxable event and when it's not.
If your international money transfer involves any of the following, then chances are you will need to declare it.
There are cases for bringing money into Australia without paying tax. The following large money transfers generally aren't subjected to tax:
Just keep in mind, for the above non-taxable events, you will still need to check any local tax responsibilities in the country the transfer is being sent from.
If you have any confusion over whether your money transfer is taxable, it is best to speak to a tax professional to make sure you comply with Australia's taxation regulations.
If you receive a taxable money transfer and choose not to pay the tax, then you risk fines and other penalties. More serious consequences include criminal convictions and even prison sentences.
Criminal convictions can affect your employment and ability to travel outside the country. So it is important to report any large money transfers on your annual tax returns to the Australian Taxation Office. If you have any doubts, speak to a tax professional for guidance.
There are things you can do to make sure you avoid getting into any legal or tax difficulties. Here are some tips:
| Response | |
|---|---|
| 2-5 | 38.89% |
| 1 | 21.11% |
| 0 | 17.78% |
| 10+ | 12.22% |
| 6-9 | 10% |
If you are looking to send a large amount of money to Australia, you'll typically find specialist international money transfer providers offer lower transaction fees and more competitive exchange rates. You can use our comparison table to compare our hand-picked list of specialists.
However, if you want to explore other ways of transferring a large amount internationally, take a look at our detailed guide which breaks down alternative options.
There is no limit on the amount of money you can bring into Australia. However, if the combined value of cash in the local or foreign currency you are carrying is equivalent to AUD$10,000 or more, it needs to be declared.
There are two types of money you can bring into Australia: physical cash and bearer negotiable instruments (BNIs).
Cash can be declared when you enter Australia at the international airport or seaport. The declaration form only needs to be completed when the total cash value you bring into Australia exceeds AUD$9,999 - not counting BNIs.
These are non-cash forms of money and include cheques, bearer bonds, money orders and promissory notes. Money items without an assigned value or a specified payee (like black cheques) are also considered BNIs. You only need to declare these if it is requested by customs.
You could face penalties if you violate any of the following rules:
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If you’re thinking of sending a money transfer with Western Union, read our review of its transfer speed, exchange rates and fees first.
If you’re thinking of sending an international money transfer with ANZ, make sure you read our review of ANZ’s exchange rates and fees first.
We go into detail on MoneyGram's fast transfers to 200+ countries and territories worldwide.
I moved from the UK to Australia 20 years ago and I’ve had a savings account there with AUD58,000. How do I declare it? Do I need to declare it? It lost a lot of its equivalent value since I moved here.
Hi Ray,
Thank you for reaching out.
If you are planning to transfer the money from UK to Australia amounting to 58,000 AUD, yes you need to declare the amount to avoid severe penalties that come with a failure to report large sums of money being brought into the country.
Please coordinate with the Australian Transaction Reports and Analysis Centre to report the incoming amount. If you need professional assistance, you can speak to an FX expert by filling out the online form found on this page.
Hope this helps! 😊
Kind Regards,
Mai
My father-in-law wants to send a large sum of money from overseas to his daughter’s (my wife) Australian Bank Account. He wants to gift the money so that we can buy a house in Australia without going through a mortgage or paying any interest to the banks to buy a house to live in. Me & my wife both work full time & pay our taxes every year. At the moment we live in a rental & are looking forward to this option where we can buy a house outright without paying interest. My questions:-
1. Any restrictions (as in, restrictions from ATO or Banks) if my father-in-law wants to send around $500k AUD to his daughter’s bank account
2. Does any one have to provide any paperwork about the large sum being transferred from overseas bank account to a Australian bank account.
3. Do we have to pay tax on the amount we receive in our bank account from overseas?
My understanding is that, since my father-in-law has worked all his life and saved money & wants to gift that money to his daughter so that she can buy a house to live with her husband & kids, there shouldn’t be any problems as such. But I just wanted to get a clear & legal answer before we can go down this path.
Thanks
Hi Syed,
Thank you for reaching out to Finder.
As long as you go through a legitimate money transfer provider, you won’t need to provide any extra paperwork. The main legal considerations when sending large sums of money are the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, but your money transfer provider will look after the necessary documents when you submit your identification for processing.
As a good rule of thumb, keep all records and emails relating to the transfer in case you need them later.Money transfers that are seen as one-off gifts or rewards aren’t taxed, but there are instances where they can be. This includes if the gift money is part of a business-like activity or if it’s related to how you earn income. If you decide to invest this gift money, the income it generates can be taxed. It would be best to consult a tax specialist for guidance. Hope this helps!
Cheers,
Reggie
I am considering returning to Australia and I need to transfer funds from Europe in order to purchase a house. What documentation is required from my side to accompany the funds?
Hi Dennis,
Thank you for your comment.
Your bank or money transfer service might ask for your ID documents, information about where the payment is from, and who it’s going to. Some companies will take this information for every transaction, as they’re obliged to report payments to AUSTRAC – both large and small – and anything which might look suspicious.
Because you’re also thinking of returning to Australia, there are foreign exchange companies that allow you to create an account and link two bank accounts. Once this has been set up, you are able to transfer money from your foreign bank account to your Australian bank account.
The minimum requirements for starting an account is your address, personal details, certified identification, a bank account to draw from and a list of the countries which you want to send money. Most applications can be made online.
Once your account is ready to trade, you can log in, get a quote and if you are happy with the rate, you can accept the rate and provide details of an account to draw from or transfer to. Before you transfer, notify your bank, both the incoming and outgoing, of a large sum of money being moved. Often if you have never done this before, limits are automatically imposed unless at your request and the bank approves.
I hope this helps.
Regards,
Jhezelyn
A binary company wants to charge us 1500.00 usd initial transfer fee to release our profits, is this normal for all companies?
Hi Paul,
Thank you for your inquiry.
I’m not quite sure if that’s actually normal as we don’t exactly know the terms and conditions of the company you’re within terms of how they pay the profits. Do you have any documentation of your contract with that company regarding how you’re paid with your profits? Best to confirm this so that you would avoid such fees.
Meantime, while we hope that you’re not being defrauded, best to be wary of anyone online who tells you there are upfront deposits or payments, as usually, normal transfers don’t incur very huge fees. Better to check your sender’s identification first and investigate why they would require you to pay first. You may want to check our guide about transfer scams. You may refer to the common money transfer scams to watch out for.
Hope this has helped.
Cheers,
May