Australia’s International Money Transfer Regulations

In general, Australia is less strict than many other countries when it comes to international money transfer regulations. But it would be a mistake not to understand your obligations in their entirety. The Australian Transaction Reports and Analysis Centre (AUSTRAC) supervises financial transactions in Australia. For this reason, it is prudent to check whether your money […]

In general, Australia is less strict than many other countries when it comes to international money transfer regulations. But it would be a mistake not to understand your obligations in their entirety.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) supervises financial transactions in Australia. For this reason, it is prudent to check whether your money transfer company is registered with AUSTRAC. To do this, visit the Remittance Sector Register on their website and type in the name of the remittance provider you wish to use. For example, if you type ‘e-Pocket’ in, our name will appear on the remitter list.

You should familiarise yourself with all regulation compliance requirements on remittance from Australia. For example, AUSTRAC requires that any transactions of $10,000 AUD or more be reported. This applies to both incoming or outgoing transactions, and it is a legal obligation this report is lodged within ten days of the transfer being made. The report can be made by the service provider or the business involved in the transfer.

With that being said, according to the AUSTRAC website, “There is no limit to the amount of money that you can travel with, receive and send overseas”, and “You also don’t need to declare money that you transfer overseas or receive from overseas through a bank or a remittance service provider (money transfer business).”

You need to know how and where to meet your requirements. There are certain laws around declaring cash and non-cash forms of money. If you are travelling into or out of Australia, you will need to complete the Travelling into or out of Australia with money form. Always be sure to keep a copy of your receipt, as the Australian Border Force might need to see it. You also need to declare money you are sending overseas, or have received from overseas. For that, you would complete the Sending or have received money from overseas form.

So what specifically are you required to declare? Well, any cash and non-cash forms of money – AUD or a foreign currency – that add up to $10,000 AUD. These include cash, bearer negotiable instruments (more commonly known as BNIs), bill of exchange, cheque, promissory note, bearer bond, traveller’s cheque, money order, postal order, or other negotiable instruments. As explained by AUSTRAC, “Money orders, postal orders and similar orders, and any negotiable instruments not otherwise listed above, must still be reported as BNIs even if they do not specify the amount to be paid or the payee.”

Other rules

BNIs: Any negotiable instruments must be reported as BNIs whether they specify the amount paid to the payee or not. Some will include the instruction “pay to the bearer”, which refers to the person in possession of the BNI.

Fees for carrying money: There are no fees associated with declaring physical currency of BNIs.

Rules for children carrying money: Whilst there is no age limit for carrying money, you are still obliged to report cross border movement of cash or other monetary instruments of $10,000 AUD or above. You cannot avoid your reporting obligations by having a child carry your money on your behalf.

Carrying money for someone else: Whilst you can carry money on someone else’s behalf, you must declare your own details, as well those of the person you are carrying the money for on the reporting form.

Sharing money between a group of travellers: Simply put, sharing cash and non-cash forms of money to avoid your reporting obligations, is illegal. This practice, known as “structuring”, can lead to fines and even imprisonment. It is also illegal to make multiple trips across a border specifically to avoid your reporting obligations.

Penalties

If you fail to declare cash or non-cash forms of money when you enter or leave Australia, or send or receive money overseas, you risk penalties like fines or imprisonment.

If you have been issued with an infringement notice, there are three different ways to pay. You can pay via secure online payment, using a credit card, internet banking via BPAY (for Australian residents only), and money order or bank draft, payable to AUSTRAC. Recently, the Australian Taxation Office (ATO) began cracking down on people bringing funds into Australia to avoid paying taxes.

Important to know

International funds transfer instruction reports: More commonly known as IFTI reports, as AUSTRAC explain, involve either “an instruction that is accepted in Australia for money or property to be made available in another country” or “an instruction that is accepted in another country for money or property to be made available in Australia.”

If you send out an IFTI outside of Australia, you are required to submit an IFTI report to AUSTRAC within 10 business days. There are two different types of these: “IFTI-Es are made by financial institutions and apply to transfers of money which are sent or received from another country” and “IFTI-DRAs are made by businesses, organisations or individuals who are not financial institutions such as remittance service providers and casinos. They apply to transfers of money or property.”

You can submit IFTI reports through AUSTRAC Online. Here, you can find detailed instructions on how to fill out an IFTI form. You may receive a written notice from AUSTRAC, to provide further information about an IFTI report. Should you receive such a notice, you are legally required to provide the information requested.

Tax implications of remittance in Australia

There is no income tax on gifts in Australia. If your transaction is classified as a gift, you are not expected to pay tax on it. To qualify, the transaction has to be a transfer of money or property, a voluntary transfer, or a transaction with no expectation of return or material benefit to the donor. Learn more about this at Bristax.

Whilst bringing more than $10,000 AUD into Australia requires a report, this does not necessarily mean you will be taxed for such a transaction. In fact, if you have complied with the tax rules in the country the funds were sent from, it is unlikely you will be taxed again on the same income.

Conclusion

When sending money overseas, you need to understand Australia’s international money transfer regulations. The last thing you want is to break a law you didn’t know about. Always ensure you follow the law when sending money overseas from Australia.

You can rest assured you are meeting money transfer regulations when you send money overseas with e-Pocket. We follow each and every requirement, so you can send money overseas without any stress.