Best Way to Transfer Money from US Bank Account to Australian Bank?

smarti77 on 02/03/2020 - 08:27
Last edited 02/03/2020 - 08:31

My son is about to finish an internship in Seattle. He has been well paid and will have saved roughly $20K (USD). His salary has been paid into a US bank account in his name. He would like to know the best way to transfer that money to his Australian bank account (NAB), minimising fees and ensuring a fair currency conversion rate.
I've never had to transfer money from overseas. Google led me to lots of advertisements to services that don't seem great.
Should be simply transfer the money directly to his NAB account (using his online banking for his US account)?
Any advice would be greatly appreciated.

I'm also somewhat confused as to whether he has to pay income tax in both countries. His employer is assisting with the US taxes. I'm assuming the ATO will want a piece of it too.

Thank you

Financial Money Transfer

Comments

  • karmageddon on 02/03/2020 - 09:16
    +2

    I’m an Australian living in Seattle

    1. He shouldn’t need to pay Australian taxes on his US income, but he must report it to the ATO if it’s over a certain threshold I think (due to changes around HECS repayment)
    2. Transferwise and ozforex are the best ways to transfer money back to Aussie bank accounts

    If he happens to be interning at the same company as I work (fb) let me know and I’d be happy to catch up with another Aussie here

    • smarti77 on 02/03/2020 - 17:06

      Thank you. Very helpful. He's at Microsoft. Unfortunately he only has a short time left otherwise he would have found time to catch up.

  • RockyRaccoon on 02/03/2020 - 09:17
    +1

    Open a Citibank Plus account here. Have him open a Citibank acount in US.

    Transfers between International Citibank accounts are free of fees (exchange rate variations can apply but personally have found Citibank rates quite fair). Then locally can transfer to NAB account if he wishes.

    As for ATO, it will depend on his residency status and how long he was in US, and if he has assets here. You need to talk to an accountant to be sure.

    We have a dual tax agrement with US, so in many cases if you pay tax in the US, that can be claimed off Australian tax, but like all Tax, its not simple, its a deduction off your tax paid here. eg if you dont earn enough to be taxed here, the claim isnt much use. Like I said its complicated so thats why an accountant is important.

  • backpack on 02/03/2020 - 09:30
    +1

    I recently did this. Currencyfair gave best rate. You put in the order when rate is best and transfer usd to the usd account that's linked to your nab account. Happy to give referral link - not sure what you get but prob something.

  • iDroid on 02/03/2020 - 09:57
    +3

    Transferwise: You can open both USD and AUD bank account (all done online) and accept incoming funds in USD into your own USD account then you can transfer it between your accounts (eg to AUD) at your will. Their rates are the best I can find.

    https://transferwise.com

  • omguleh on 02/03/2020 - 09:58
    +2

    Use Transferwise.

  • EightImmortals on 02/03/2020 - 10:11

    Buy bitcoin/eth then sell it then deposit the funds into your aus bank account?

  • Tovers93 on 02/03/2020 - 11:07
    +2

    I'll be the third person to say Transferwise. You pay into their bank account in one currency and they'll pay you out in another.

    Another advantage of this one is that you can lock in a potential transfer rate for several days. Therefore if the rate improves, you can cancel it and transfer at the improved rate without penalty

  • crazyboy on 02/03/2020 - 12:01

    TransferWise is the best.

  • leiiv on 02/03/2020 - 12:05
    +1

    Just a reminder, Transferwise has been posted here: https://www.ozbargain.com.au/node/521644

  • toniyellow on 02/03/2020 - 12:06

    https://www.ozbargain.com.au/deals/transferwise.com
    https://www.ozbargain.com.au/deals/ofx.com
    https://www.ozbargain.com.au/deals/currencyfair.com

    Have had good experiences with each of them

    Different ones have been the best for transactions I have done at different times, through referral promos they had going or the rates they were offering on the day, so I would look at each of them and see what suits you.

  • smarti77 on 02/03/2020 - 16:57

    Thank you for all the responses. Time to do a little more research. Many thanks.

  • syd-ozbargainer on 01/04/2020 - 23:24

    Has anyone tried torfx? I am looking to transfer a larger sum and most of the online service have a limit. Any reviews/experiences on torfx would be great.

  • ozbargainerlife1 on 15/08/2024 - 08:36

    What was the cheapest method? can I also confirm if I am sending funds from AUS to the US… is it necessary to enter the routing number? CBA Does not accept it. Only wants Swift and Account number

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