What should you know when sending $10,000+ to Australia? | finder.com
Kangaroo on a beach in Australia

Tax guidelines and regulations for large money transfers into Australia

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Australia generally doesn’t tax gifts — but it does tax foreign income.

If you’re sending a large amount of money to Australia, both you and your recipient may be required to report it on your taxes.

How Australia regulates large remittances

If you’re sending a large sum of money to friends and family in Australia, they could be on the hook for taxes regulated by the Australian Taxation Office, depending what you’re sending it for.

If you’re sending money for business purposes, including for purchasing goods, receiving advice or counsel or investing in a business, your recipient will have to declare it as foreign income on their yearly tax returns.

In general, one-time gifts or inheritances transferred into the country are not subject to a gift tax. But Australia leaves their tax code vague, stating that “gifts may be taxable if they are large amounts or you receive them as part of a business-like activity.” This allows them to charge taxes if someone tries to pass off a business payment as a gift.

If you’re concerned about a large transfer, speak to a tax professional to make sure that you comply with Australia’s taxation regulations.

CurrencyTransfer

Our pick for large transfers: CurrencyTransfer

Get the best foreign exchange rates available from this online marketplace.

  • Exclusive to Finder readers: Minimum transfer of $1,000 (normally $5,000).
  • Fast 1-2 day delivery to bank accounts.
  • No fees.
  • Globally trusted brand.
  • CurrencyTransfer reimburses you the difference if you get a better rate somewhere else.

    Compare providers for your next large transfer to Australia

    I want to send

    to

    Max. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
    No limit 1 - 2 days USD 0.00 1.394 AUD 20,917 Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
    For larger transfers, get no transaction fees and no maximum send limits.
    Go to site Show details
    No limit 1 day USD 0.00 1.385 AUD 20,770 Venstar will support you through the entire process of your international transactions, from start to finish. Go to site Show details
    No limit 1 day USD 0.00 1.389 AUD 20,833 No-maximum limit transfers with competitive exchange rates for 100+ currencies. Go to site Show details
    USD 199,999 1 - 2 days USD 0.00 1.387 AUD
    20,808
    Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details

    Compare up to 4 providers

    What are the penalties in Australia if my recipient fails to file?

    If your recipient owed money on the transfer but didn’t report it on their income taxes, they can owe up to a 75% penalty on the taxes owed. If they’re convicted of tax evasion or fraud, the penalties can be higher and include jail time.

    Do I have to report large transfers out of the US?

    Possibly. If you’ve sent more than $15,000 as a gift in the last year or more than $10,000 for business purposes, or if you’re sending money to a foreign account in your name that’s held more than $10,000 in the past year, you’ll need to report it.

    By law, banks are required to report cash transactions that exceed $10,000 — and transactions of any amount that raises suspicions. For independent money transfer businesses, the reporting threshold can be as low as $1,000. Talk to a tax professional about whether your money transfer complies with federal taxation guidelines.
    Sending a lot of money out of the country? Know what the IRS expects of you.

    How much money can I send to Australia?

    To put it simply, as much as you want. Neither the US nor the Australian government puts a cap on remittances. But some money transfer providers do set their own limits, so if you’re planning a large transfer, use a limit-free provider like XE.

    How will my recipient in Australia get the money?

    Depending on which transfer provider you use, your recipient can pick up the cash in person or have the money deposited directly into their bank account or mobile wallet.

    If they’re picking up the money in person, have them bring a photo ID and transaction or confirmation number with them.

    How to send money to Australia

    Bottom line

    Sending money to Australia is fast and simple if you use a reputable money transfer provider, but if you’re sending money for business purposes, both you and your recipient may be responsible for reporting it on your taxes.

    As with all international money transfers, protect yourself from fraud by only sending money to people you know. Using a reputable provider can help to safeguard you from potential scams.

    Frequently asked questions

    Picture: Shutterstock

    Was this content helpful to you? No  Yes

    US International Money Transfers Offers

    Important Information*
    XE Money Transfer

    Transfer up to $500,000 with no minimums and no fees.

    WorldRemit International Money Transfers

    Use promo code 3FREE to send your first 3 transfers with no fee. Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

    TransferWise

    Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

    CurrencyTransfer

    Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
    For larger transfers, get no transaction fees and no maximum send limits.

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

    2 Responses

    1. Default Gravatar
      ChristineMay 15, 2018

      I have supposedley won $200,000,000 and have been inforrmed that I need to send $5,000 to the high court of Hong Kong for the money to be transffered to my Australian bank account. Is this true. They said it is Hong Kong Law.

      • Default Gravatar
        joelmarceloMay 16, 2018

        Hi Christine,

        Thanks for leaving a question on finder. Please note that we are a comparison website and we do not represent any of the providers on our page.

        You’ve received a letter that you’ve scored a prize. Or maybe you’re contacted about a lottery you’ve won. It’s a lot of money, and there’s only one catch: you first need to pay a fee or cover taxes to receive it. It’s such a small amount, about $1,000. Surely that’s worth receiving what you’re due.

        You should never have to pay up front to receive a prize or lottery winnings. That alone should raise red flags. But if you’re curious, research the organization or company from which you’ve received your letter to see what others have to say. If it sounds too good to be true, it probably is. For more info about online scams, please go HERE.

        Cheers,
        Joel

    US International Money Transfers Offers

    Important Information*
    XE Money Transfer

    Transfer up to $500,000 with no minimums and no fees.

    WorldRemit International Money Transfers

    Use promo code 3FREE to send your first 3 transfers with no fee. Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

    TransferWise

    Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

    CurrencyTransfer

    Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
    For larger transfers, get no transaction fees and no maximum send limits.

    Go to site