Recurring RSA-AUS money transfer

[Timmin]

Hi everyone,

I am in a bit of a pickle regarding money transfers, and would love to hear your inputs.

I am leaving for Sydney in a few days' time, and will be working as a contractor for an Australian client of ours for the next year. I will still be full-time employed by my South African employer, and my salary will be paid into my South African bank account each month. I can directly use my South African issued debit card for purchases and ATM cash withdrawals abroad, but it will obviously incur hefty transaction fees and poor currency conversion rates. I also won't be able to do electronic payments to third parties (for instance paying rent, etc.).

So, what I really would like, is to open an Australian bank account and transfer my salary into the account each month. My understanding is that opening an Australian bank account is fairly straight forward and easy. I am however uncertain about moving funds from RSA to Aus on a monthly basis, and if it will be worthwhile doing it for only a single salary amount. Please bear in mind that I bank with Capitec here in South Africa, and that they do not currently offer an international payment service. Furthermore, Australian banks charge transactions fees of A$11-15 per incoming SWIFT payment, which is also not ideal as a monthly ritual.

Exchange4Free charges R375 per transfer (if it is under R100k, which it is), and it is a lot of paperwork for recurring payments (my understanding is that each payment requires the original paperwork here in RSA).

What do you guys think? How can I minimize transaction fees and conversion losses?

Edited November 13, 2013 by Timmin

[Izzy]

Hi

Cash Cows charges R 250 per transaction and the Austalian bank charges R200 per incoming deposit Plus whatever the exchange rate cost is but they do charge less than commercial banks do. You would have an account with Investec that remains open but you would have to instruct Cash Cows every month. to transfer the money across. You only do paperwork once.

Might be easier to put salary into your credit card and just use it overseas

[Mara]

You would also have to look at the tax implications. If you are going to be Australian resident, for tax purposes, you will have to declare both your South African and Australian income for tax purposes.

[SmellyN]

Bank with FNB from that side & haven't had a problem using normal chq/debit card...fees are pretty normal.

[Hugo2]

Timmin

Please do not use your credit card overseas, unless you have specific approval issued in writing to you. Inbox, I can assist

If you a contractor the 183/60 day tax exemption is not applicable and you may face SARS and ATO reporting on same income but one tax only with a possible top up in Australia.

There is away around the issues listed - inbox me or ask your employer to contact me as the solution is in their Excon application\

I am www.hugovanzyl.co.za or email me hugovz@iafrica.com or hugo@cashkows.com

[LUIS]

hi Timmin

get hold of treasuryone http://www.treasuryone.co.za/ check with them they should be able to help.