I have inherited $40,000 from my father in NZ when he passed away - do I have to pay tax on this money when I transfer to here in Australia?
I am a foreigner. My daughter is Australian PR. I want to buy her an apartment in Australia with my money. Will this be subjected to any tax in Australia?
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Hi Belinda and Shafiqul,
Thank you for your questions. Belinda, sorry to hear about your father’s passing. We have multiple articles available to help you cope with the loss of a loved one, please reach out if you need any assistance in this area. Many countries, including Australia, have abolished death taxes on assets held in the deceased’s personal name. Countries like New Zealand and Australia also have tax treaties which often prevent any issues of double taxation. We are not authorised to give specific advice on matters regarding taxation of other countries but more information specific to New Zealand can be found at: https://transferwise.com/gb/blog/new-zealand-inheritance-tax
From an Australian perspective you will have to pay tax on any income generated from these funds once they are in Australia. For example the interest generated from holding the cash in your bank account will be added to your taxable income. Please also note if you intend to bring physical cash back to Australia you may need to declare these funds with Customs. If the inheritance is coming from a superannuation fund there may be some tax implications, please contact your father’s super fund to confirm this (if applicable). You may need to contact your accountant or financial adviser if this is the case. More information can be found at: https://transferwise.com/au/blog/tax-implications-transfer-from-australia.
Shafiqul, if your daughter is an Australian citizen and owns the property in her own name as her principal place of residence, then there should not be any taxation of these funds (from the Australian Government). Australia has very complicated taxation laws around property investing so if this is your intention please speak to a local taxation adviser regarding the implications for investing in property within Australia. The above mentioned link is also relevant to you.
There may also be taxation implications from your home country so it would be prudent to check with your local adviser to confirm any implications in your own jurisdiction. If you intend to own the property in your name then things get complicated and you will need to contact a professional who specialises in this area. More information about this can be found at: http://firb.gov.au/
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making any decision based on this information, you should assess your own circumstances or consult a financial planner and seek tax advice from a registered tax agent. Information is current at the date of issue and may change. Part of the IOOF group.
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