Tiermelk Posted March 8, 2013 Report Share Posted March 8, 2013 Any ideas for investing some cash in Australia while you are still in SA? Australian exchange traded funds like Satrix? Or something like PSG where you can invest in Unit Trusts?Considering a lump sum and some monthly investments. Or would it be to much effort to move money on a monthly basis?Hugo Quote Link to comment Share on other sites More sharing options...
Brad76 Posted March 8, 2013 Report Share Posted March 8, 2013 If you're you going to invest locally in foreign listed products it shouldn't be much of an issue. If you're physically going to transfer money and then invest you're going to need a tax clearance certificate, thereafter the hassles should be minimal! Quote Link to comment Share on other sites More sharing options...
Toitjie Posted March 8, 2013 Report Share Posted March 8, 2013 Brad - does that mean one can transfer money on a regular basis from SA to Oz? Does that not have an impact on your travel allowance when you decide to move finally? Quote Link to comment Share on other sites More sharing options...
Brad76 Posted March 8, 2013 Report Share Posted March 8, 2013 No it won't impact on your travel allowance. If you obtain a tax clearance for a foreign investment allowance the funds transferred on that basis don't impact on your annual travel allowance limit. The tax clearances are normally valid for a year and as long as you remain within the limit (which for most people it shouldn't be an issue) you can transfer funds! Quote Link to comment Share on other sites More sharing options...
Tiermelk Posted March 9, 2013 Author Report Share Posted March 9, 2013 Thanks brad76, I was more thinking along the lines of transfering the money to Aus and investing there. Can anyone elaberate on the pro`s and con`s of directly investing in Aus or investing through an SA entity? Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted March 11, 2013 Report Share Posted March 11, 2013 (edited) Lump sum is best done on the R4m annual investment allowance (FIA), monthly is best done on the Discretionary Allowance (R1m per year), but the amounts invested (FIA) using DA goes to reduce your travelling and other allowances. DA is combo name for various things ie you can send your DA R1m as either travel, of foreign investment, or loan or gift. If you married your joint DA is R2m and if there are 2 kids the travelling allowances aggregate to R2 320 000 (not only R2m FIA as you need to be 18 for FIA). If you can spend that much on travel then I agree use tax clearance but I suggest most families will not spend near that on travel per annum so go ahead do the easier and legal transfer monthly of if you want to save cost, do it quarterly but the Rand movements can nullify the cost saving!Do not use an investment vehicle or entity registered in SA as you will probably end up breaking Excon rules. Provided you not heading to Aus in the next 24 months look at a cheap NZFT (new zealand trust) as the latter is tax free in NZ provided you do not invest in NZ, but do take note it becomes taxable and not so investor / tax friendly once you are Australian tax resident. Inbox me for me private comments or questions.Naamgenoot (dis nou Hugo Tiermelk) we have no formal link with foreign fund managers but contact Mariette at Cashkows.com in Australia Edited March 11, 2013 by Hugo2 Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted March 11, 2013 Report Share Posted March 11, 2013 Thanks brad76, I was more thinking along the lines of transfering the money to Aus and investing there. Can anyone elaberate on the pro`s and con`s of directly investing in Aus or investing through an SA entity? SA entities do not enjoy the Excon benefits you do. Use non-rsa entities - see comment below and many clients elect to now commence funding their Australian trust. Do note the Australian trust is managed by an Aus Co and you will need an Aus resident director. Also, should your Aus structure not pay you interest, section 7(8) in SA will deem YOU the SA tax resident earning the income earned within Us trust. Treaty denies you the right to claim Aus tax credit in SA. Be very wary of structures, KISS - keep it simple simon Quote Link to comment Share on other sites More sharing options...
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