Hi there!
I’m looking for some general advice about potentially receiving money from Australia, especially regarding any possible taxes, fees, or just things it is better to avoid doing.
I plan on seeking professional financial advice too, but don't know much about finances and just want to get a general idea of what to look into more.
Firstly, I am in my 40s and established with a good job, PR, house and family here in Japan. My mother wants to send us a gift of $100k AUD to use as we see fit, to balance out future inheritance with my siblings who have already received a similar amount.
A couple of options come to mind.
Firstly, I could look at getting the money transferred here to Japan. Since it is a gift I don't think I would have to pay inheritance tax on it, but are there any other fees or taxes I might potentially be liable for? This amount looks like it would qualify for the Japanese gift tax, but I'm not sure of the specifics…
If I transfer it to Japan, I would look at either paying off my house, or investing in stocks or something like that. Leaning more towards investing, because I reckon there it has a higher earning potential since my home loan is low interest… Is this the right line of thinking?
Alternatively, I could look at keeping it in Australia, and doing something with the money over there. This would save on transfer fees and/or taxes etc. However, I am not a resident for tax purposes in Australia, so am concerned about potential higher tax rates on any profits I might make over there.
In Australia I would either:
Put it in my super,
Look at investing in stocks etc,
Maybe look at an investment property… but I don't think 100K is really enough to seriously consider this option.
Super would probably be the easiest, but then I can't access it until my mid 60s, and I’m not sure how much interest / profit it would make.
Investing in stocks etc might be better, but due to being a foreign resident I heard I would be taxed on all profits in the highest tax bracket… I think there is some type of mutual tax agreement between Australia and Japan, but don't know any specifics or how it would affect my particular situation. Is there anything I should be aware of regarding these options? … More an Australia question than Japan question, but anything you know would help.
So yeah, any advice on my situation, anything to avoid, or any specifics you recommend I look into more would be greatly appreciated.
Cheers!
by U-Ray