International Money Transfer Policy: Australia
According to Statista, Australia ranks at the top 11th position in the world for digital remittances.
With a market size of $1.8 billion in 2020, the Australian digital remittance market is expected to reach nearly $2.9 billion by 2024 with a Compound Average Growth Rate (CAGR) of 11.6%.
Australia International Money Transfer Regulations
Every nation has specific laws and regulations in place for overseas money transfers. And the same goes for Australia.
In the Oceanic country, the Australian Transaction Reports and Analysis Centre (AUSTRAC) supervises international remittances to prevent, detect, and respond to the national financial system’s criminal abuse.
Contrary to APAC countries like China or Malaysia, Australia’s international money transfer regulations are quite lax. In terms of legal requirements, the most important rule to consider is that Australian regulators have a threshold transaction report for transfers exceeding AUD$10,000. As per the nation’s AML/CTF rules, either you or the service provider has to report cash or digital money transfers over AUD$10,000 to the AUSTRAC. In practice, this usually means that the company will ask for KYC/AML documents from you upon exceeding the threshold.
Overseas Remittance Taxation
It’s also important to explore whether you have to pay taxes for the funds you bring into Australia. When you travel to Australia and you physically bring over AUD$10,000 across the nation’s borders, you will have to declare that sum to the customs. The same rule goes for cheques, money orders, and when you mail or ship funds above the threshold. For receiving remittances from abroad in Australia, taxation mainly depends on the source of the funds. While it’s best to consult with an accountant on this matter, here’s a list of instances where you may not have to pay tax on international money transfers you receive:
- Cash gifts that do not involve income- or business-related activity (e.g., birthday presents)
- Inheritance (although, state tax rules may apply)
- Your savings from another country when migrating to Australia
On the other hand, you may have to pay tax after:
- Foreign pensions and superannuation
- Offshore bank accounts held by permanent Australian residents
- Overseas property sale
Australia Cryptocurrency Policy
As part of a progressive regulatory framework, cryptocurrencies are legal in Australia with digital assets treated as property within the nation. Therefore, cryptocurrencies held by Australian citizens may be subject to Capital Gains Tax (CGT). Australia also regulated cryptocurrency exchanges, which requires digital asset service providers operating in the Oceanic nation to register with the AUSTRAC as well as to comply with different KYC, AML, and CTF rules.
Bank Wire Fees and Limits
While you (or the service provider) have to register international money transfers exceeding AUD$10,000 to the AUSTRAC, Australian authorities do not restrict the maximum size of bank wires. Regarding the fees, Australian banks usually charge between $10 and $30 for sending and around $10–15 for receiving an international wire.
Fees and Limits for ATM Withdrawals
There’s no universal limit for ATM withdrawals in Australia. However, as the machines are limited to dispensing 40 notes in a single withdrawal, most ATM machines have daily limits in place for withdrawing cash. For example, Westpac limits domestic ATM withdrawals at AUD$3,000 per day and AUD$2,000 a day for international cash withdrawals. Fees also vary by the service provider. However, a golden rule for Australian banks is that you can withdraw cash free of charge if you use an ATM from the same branch (or a partner service provider’s) as your bank account. Otherwise, you will likely pay around AUD$2 for each ATM withdrawal.
STICPAY for Australia
At STICPAY, you can open a local currency account in AUD within a few minutes, while you can take advantage of the cost-efficient domestic bank wires to withdraw your funds within 1–2 days.
Furthermore, you can also use the STIC Card in over 177 countries for spending and withdrawals.
Sources
Australian Government — Legislation Transferwise Blog — Tax Implication Transfer From Australia Compare The Market Comply Advantage Statista — Digital Remittance Australia Australian Government — AUSTRAC Transferwise Blog — International Transfer: What Australian Banks Charge
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Originally published at https://www.sticpay.com on August 27, 2020.
