How Can I Transfer Money to Australia From Overseas?
We live in a globalist dream, living in different countries across the continents and reaching for every international opportunity available.
However, technology needs to keep up the pace and remove traditional barriers to living and working overseas and earning cash overseas.
One necessity is transferring money across countries, in particular when purchasing a home in a different country. Unlocking the ability to transfer cash fast, regardless of the currency, is a substantial benefit.
But, why would you need to transfer cash to Australia, and what is the best way to transfer money to Australia from overseas?
What Are the Top 5 Reasons People Transfer Money From Overseas?
Have you ever needed to transfer money overseas? Perhaps you are purchasing a home, paying your mortgage repayments, or supporting a spouse or family member abroad?
Here are the top 5 reasons why you may need to transfer money to Australia from overseas.
1. Mortgage Deposit
Buying a home in Australia can cause a great deal of stress if you are currently living overseas. How can you arrange a home loan to secure the finance you need for a dream home Downunder?
Odin Mortgage are expert brokers who specialise in Australian home loans for Expats. Get approved for your home loan today! Immediately discover how much you can borrow in Australia and the cost of your mortgage repayment instalments! Odin Mortgage’s professional brokers are waiting for your call!
2. Home Loan Repayments
Do you intend to remain overseas after your Aussie home purchase is complete? Or will you pay your home loan repayments from your overseas earnings?
Whatever your personal circumstances and financial situation, you need to make the right choice when transferring your cash! Consider setting up a direct debit so your money transfers can be scheduled.
3. Moving to Australia
Are you moving back to Oz, or are you a foreign national emigrating Downunder? Moving to Australia is a significant goal for many people, particularly when moving from colder climates! However, there are many issues to sort out before you land on Australian soil.
You may need to pay for a rental deposit, or to purchase furnishing for your new home? Perhaps you need to pay for your children’s Australian school fees in advance of arrival?
You may want to transfer money to Australia as a one-off payment or a recurring payment, in anticipation of your new life in the land of the long weekend!
4. Studying Abroad
Studying overseas is an amazing opportunity, offering an exciting new life and invigorating cultural surroundings. However, you may need to pay for tuition fees and accommodation in advance, perhaps several months before you arrive.
Completing money transfers successfully with a trusted service can help you settle into your new environment, ensuring your cash arrives at its intended destination.
5. Friends and Family
If you have moved overseas to earn a higher income, you may wish to send money transfers to members of your family or friends. Perhaps you want to set up a recurring payment to help with living expenses? Or complete a one-off transfer as a gift?
Whether you need a recurring transfer or a one-off transfer, look out for zero fees and a fast and reliable money transfer with available money transfer services.
The 3 Best Ways to Transfer Money to Australia From Overseas
How can you transfer money to Australia from overseas? Here are the best methods to use to complete your money transfer Downunder.
1. Use a Bank
The traditional money transfer method is, of course, using a bank. You can visit your local HSBC or Citibank to deposit cash in person, asking your friendly bank teller which foreign currency rates are currently available.
However, it is possible to use a banking app for foreign money transfers, with HSBC also offering you the option to trade.
Buying and selling foreign currencies can make you a generous profit if you know which rates to buy and sell at.
Use such banking apps to transfer money to Australia from overseas. Perhaps you need to pay a deposit or fees when buying a new Aussie home?
Although, you may be faced with limits on the amount of cash you can deposit using a bank. This will depend on the type of bank account you have, however. Additionally, it could take a few days for your money transfer to reach its destination.
Banks such as HSBC and Citibank vary their fees when you transfer money to Australia from overseas. There may be a high fee for you to pay to make the transfer, although this depends on your account, the receiver’s account, and the value and currency of the money being sent.
2. Specialist FX service providers
You could use a specialist FX service provider to transfer money to Australia from overseas. Specialist FX service providers can offer you a secure, faster transfer, although be careful to check their transfer fees.
Most specialist FX service providers allow you to use an app or platform so you can track your money transfer, increasing your peace of mind.
But, which specialist FX provider can give you the best service when making your money transfer to Australia?
Here are the latest transfer fees and transfer times from the leading FX service providers.
|Provider||Transfer fees charged by specialist FX provider ($AUD)||Transfer time|
|OFX||Free ($0)||1-2 days|
|XE||Free ($0)||2-3 days|
Specialist FX service providers can be quicker than banks for money transfers. However, some providers do charge transfer fees and may not always give you the best rate.
OFX, our recommended specialist foreign exchange service provider, is a great choice when you are looking to transfer money around the globe. They offer great FX rates, and have always gotten clients money where it needs to go quickly and securely. Our clients have benefited from OFX’s service since our establishment in 2020, and like us, OFX is an Aussie-founded business. They have helped more than 1 million people and businesses across their 20+ years in the industry. Listed on the ASX in 2013, OFX is monitored by over 50 regulators globally, moving their client’s money globally with fast, simple, and secure transfers. All OFX clients enjoy great FX rates and a streamline digital platform for booking transfers.
As part of our partnership with OFX, all Odin Mortgage customers who register through our partner page on the OFX website, receive preferential foreign exchange rates (on top of already great rates) and $0 OFX fees* on all FX transfers. Plus, our customers can enjoy support from their dedicated account manager, Andrew Lee. You can track your transfer using the OFX app, and receive SMS and email notifications to stay up to date with where your money is moving.
3. Use a Stock Brokerage
The last method is to use an online stock brokerage such as Interactive Brokers to send an international currency transfer, locking in an exchange rate that is close to the spot rate in most circumstances.
The institutional currency margin on the exchange rates is often only about 0.01% from the price you buy/sell vs. the banks that can charge individual customers 1% or more. On a $100,000 transfer, 1% is a $1,000 difference which can be substantial to some.
The stock brokerage option may not be for everyone, however. This is the most complex of the three methods, as you would need to open an account, verify your identity, fund the account, learn their non-friendly FOREX user interface, do the conversion, and then finally transfer the funds back to your account.
Transfers are done as local bank transfers on each end – the deposit and withdrawal, which will reduce and save on wire costs.
Most of these transfers are being done from Hong Kong or Singapore to the US, UK, Europe, Canada, Australia and vice versa.
Fees and commissions may be much lower when you use this service, but the time and effort to learn is definitely a step up in terms of complexity.
What Is the Best Way to Transfer Money to Australia From Overseas?
The best way to transfer money to Australia from overseas is the method that saves you time and money!
Using a bank is a convenient method and an environment that you are very familiar with. The bank teller will help you make the transfer successfully and help is at hand in any circumstance. However, fees to use a bank service may be substantial and it can take up to a full working week for your funds to clear.
Using a stock brokerage is complicated and may confuse the process of transferring money to Australia from overseas. If done right, very large transfers can save you thousands as you are getting close to the current market rate. Once perfected, transfers are usually swift, although can require a great deal of time and effort from you initially.
Alternatively, using a specialist FX service provider can be a simple, fast and low-cost method that can be done through a mobile app. With most specialist FX providers you can track your money and be confident that it will arrive safely at its destination.
Do I Have to Pay Tax on Money Transferred From Overseas to Australia?
Some sources of money will require tax to be paid when transferring overseas money to Australia. Make sure you know which sums of money must be taxed to prevent facing fines at a later date.
How will I know which money will need to be taxed, however? Check out our list of taxable and non-taxable money!
|Taxable Sources||Non-Taxable Sources|
|Property sale||Cash gifts|
|Offshore bank account|
When selling property overseas, Australian residents will need to calculate capital gains tax on profit. This should be declared in full on your Australian tax return.
If tax overseas has already been paid on your property sale profit you could claim a foreign income tax offset.
When paying capital gains tax from an overseas property, however, you will typically pay 30% tax on profit. This is your capital gains, minus your capital losses, and minus any eligible discounts. Aussie residents do enjoy a 50% discount on capital gains tax, however, providing they have owned the asset for at least 12 months.
If you need to pay the Australian Taxation Office (ATO) from overseas, our recommended FX service provider, OFX, has an existing partnership with the ATO. OFX makes it easier to pay the ATO from overseas in up to 20 currencies, directly reconciling the payment with your unique payment reference number (PRN). To find out more, click here.
Rental income from overseas is taxable. You must declare all income, from Australia and from overseas, on your Australian tax return.
Once again, there could be ways to offset this if you have already paid tax on this amount overseas.
Pensions will be taxed according to the country you are living in. Therefore, you may be able to enjoy a foreign income tax offset.
An offshore bank account will require any interest to be taxed if you are an Australian resident. Once again, any accrued interest must be declared on your Australian tax return.
Australia’s gift tax-exempts cash gifts from taxation, usually cash gifts for birthday presents or Christmas. However, the taxation rules become complicated if the cash gift surpasses $10,000, however, and may be considered a business-like activity.
Overseas inheritance is not usually taxable, although this will depend on the circumstances and the guidance of the will executor.
When you emigrate to Australia, you will likely bring a chunk of savings with you. This is generally not taxable as most savings will have been saved from employment income and has therefore already been taxed.
How Much Money Can Be Transferred to Australia?
There is usually no limit to the amount of money you can transfer from overseas to Australia, although some banks do impose varying limits. This is particularly useful when transferring a home loan deposit or other large sums regarding your property purchase!
However, if you are transferring $10,000 or more, you will need to be completely transparent and report to AUSTRAC. This process prevents money laundering and terrorism in Australia. Our specialist FX service provider OFX has no transfer limits, so you can transfer as much as you want, when you want.
To ensure you meet all requirements when transferring money to Australia, use a service provider that you can trust!
How Long Does It Take to Send Money to Australia?
You can send money to Australia using a money transfer and it will take between 1 – 2 days to arrive cleared at its destination. Most money transfer exchanges will not charge you a transfer fee and will provide fast and efficient service!
There are other methods and providers that may take up to 5 working days to complete the transfer, whilst charging you a transfer fee in the process! Choose the reliable money transfer provider that you can trust to secure a swift transfer and save you money!
What Details Are Needed to Transfer Money to Australia?
You will need to enter the following details when transferring money to Australia:
- The currency you are sending
- The currency the recipient is receiving
- The amount being transferred
- The recipient’s name and bank details
- A reference that you can refer to later
Contact Odin Mortgage Today!
Are you longing to secure a home loan for an Aussie property? Request a call from Odin Mortgage and begin your journey on the Australian property ladder!
We can help you secure finance to buy a home or refinance an existing home to achieve your goals. Keep up-to-date with the most competitive home loan interest rates from Australia’s most reputable lenders.
We will negotiate the best deal available for your personal circumstances. Furthermore, as leading home loan mortgage brokers, our service to you is completely free!
Discover why you should use Odin Mortgage to secure your home loan finance and request a call from our Australian home loan experts today!
Here are the most popular frequently asked questions to help you secure a money transfer to Australia from overseas.
Do online money transfer services charge a fee to transfer funds?
Many money transfer services do charge a fee to complete international money transfers, although there are exceptions!
OFX is a money transfer company that does not charge a transfer fee* when you sign up for a free OFX account through our Odin Mortgage partner page. You can save money whilst also gaining a fantastic exchange rate!
What bank details are needed to transfer money to Australia?
Use your standard bank account details and recipient details when you transfer money to Australia from overseas. Trust a specialist FX service provider to keep your bank details and your recipient’s details safe and secure. Remember, never give anyone else your bank details when depositing money in Australia!
Do all international money transfer services use the same currency exchange rate?
No, money transfer providers set their own foreign exchange rates. You could receive less for your money just by choosing a provider with a high exchange rate!
Search high and low for competitive foreign exchange rates when sending money to Australia. You may find there is no flat fee so you can save extra cash!
*Occasionally third-party intermediary banks may deduct a fee from your transfer before paying your recipient. This fee may vary, and OFX receives no portion of it. OzForex (HK) Limited, T/A OFX | licenced Money Service Operator with C&ED HK licence No: 12-08-00582