06 Sep 2024
Are you also one of the 103,120 Pakistanis residing and working in Australia? Undoubtedly, Australia has some of the best professional opportunities, but managing finances is a never-ending hassle for expats. They have to sustain their international lives and regularly send money to Pakistan from Australia. In such a complicated financial situation, it is essential to use specific strategies. Keep reading this blog to learn the best financial tips for Pakistani Expats in Australia.
The finances of Pakistani expats are complicated by living abroad. Here is some professional financial advice to help you better manage your finances.
As a general rule, non-residents of Pakistan are exempt from Capital Gains Tax (CGT); therefore, after terminating your Pakistan tax residency, you can sell most of your foreign assets without paying taxes.
International capital gains are subject to Australian tax assessment after your residency in Australia. If you feel comfortable with that amount of time, offshore bonds will be tax-free in Australia after ten years. The funds are available for use, but exit fees and tax ramifications exist before the ten years are up. This could be a better option if you are an expat who plans to return.
Before departing, all general Pakistani investments (OEICs, investment trusts, shares, CGT-liable bonds, and income-taxed onshore bonds) must be evaluated. If owned, you should ascertain the tax implications in Australia and the ideal location and time to sell these assets. Pakistani tax will still apply to assets, even while tax credits are offered. Learn how to settle into Australian life as a Pakistani immigrant seamlessly.
One of the trickiest aspects of daily expat finance is international banking, particularly on your initial arrival at a new location. When it comes to daily finances, there are four methods to consider:
This is the most costly choice because money transfer fees and currency exchange rates may increase costs.
As an expat, opening a local bank account is a more cost-effective choice. Additionally, it indicates that you are diversifying your assets because you probably also have some money in accounts back home.
To facilitate international banking, certain multinational banks provide services tailored to expatriates. This can be an excellent choice if you have foreign assignments in several countries.
Manage your money with a fintech company and benefit from the financial technology boom. It simplifies a money transfer from Australia to Pakistan because most banking is done online or via an app.
Each country has laws governing wills and powers of attorney; some may not apply to assets abroad. Everyone should be informed that if an Australian leaves assets to children or relatives living in Pakistan, capital gains tax (CGT) will be applied to the transfer. This may leave you with a significant tax burden, but perhaps you will need more money to cover the amount owed. The assets might then be forcibly disposed of to pay the tax. It is better to have a professional will written so no such complications arise.
If you have bought income protection or Life insurance plans in Pakistan, then it could be worthwhile to know if they will reimburse you if you relocate to Australia. You might want to cash them in or cancel them if you're going to Australia, but you should wait until you have other insurance. Specific Australian super systems have insurance plans attached, even if they pay out. When you move to Australia, check all of your Pakistani insurance policies to be sure they still offer the benefits you were expecting.
Financial planning for a family requires protection before investments. After your family is safe, it's time to consider saving. The primary motivation for expat parents to save money is to pay for their kids' college education. Early childhood care can be expensive, depending on where you live, but it's nothing compared to what it would cost to educate a child overseas. For example, Pakistani expats should pay attention to the expense of schooling. Parents should understand the costs and be ready to save quickly.
As an expat, you must regularly send money online to Pakistan from Australia for your relatives back home. Relying on traditional banking can put a strain on your pocket. The best option is to use ACE Money Transfer for your remittance needs. ACE is the leading remittance-sending service with millions of users across the globe. Here are the most advantageous features of ACE.
Every expat wants affordability. ACE Money Transfer charges minimal fees and offers market-competitive exchange rates. Moreover, there are no hidden or receiving charges.
You do not have to visit a bank to initiate the physical transfer with ACE. Similarly, you will be able to use your time effectively. You can quickly initiate the transfer with a few clicks on your phone or computer. You can use ACE from anywhere.
Speed is an essential factor to consider when transferring funds internationally. ACE can be the best option in times of emergency. Unlike traditional banking transfers, each transfer with ACE is completed within a few minutes.
When you move abroad, you should expect your financial situation to change immensely. In such a situation, staying strategic and mindful of your money is essential. Use these tips to ensure economic security for yourself and your family. Sign up on ACE today for an affordable online money transfer from Australia to Pakistan.
Yes, you can maintain your Pakistani bank accounts, but you should be aware of any tax implications or currency restrictions that may apply.
Generally, remittances sent from Australia to Pakistan are not taxed in Australia, but you should check with a tax advisor to understand any specific rules that may apply.
Exchange rates can greatly affect the money the other person receives. Monitoring rates and using a service with competitive rates and low fees is essential.
You may need to file taxes in both countries, depending on your residency status and income sources.
Yes, Pakistani expats can invest in Australian property, but there are specific rules and restrictions for foreign buyers, including the need for approval from the Foreign Investment Review Board (FIRB).
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