Should I Close My Bank Account before Leaving The Country for Good

qwertyaz on 18/11/2017 - 01:00

Hi I have finally finished my studies here and about the head home soon, I was wondering if I can keep my existing accounts in Australia at no risk.

I am from a country where its economy is going strong right now, at least that's how people believe, but there is no guarantee things would remain the same for the next 10 or 20 years. I believe having a backup overseas bank account would definitely come in handy when shit happens. I have visited some countries (Zimbabwe & Venezuela) in the past where they had very strict foreign exchange controls, and have seen how people suffered from the situation while some took advantages of the system by having overseas connections.

Here is what I am about to do to keep my accounts. I am also keeping my mobile number just for the sake of receiving sms from my banks. $10-$20 a year to keep my number alive is not really a big deal. I will set up scheduled transfers between my 2 bank accounts so they both will have $2000+ transaction each month (avoid the $5 monthly fee and let them know I am still using my accounts). I will change my contact detail to my uncle's address who is a citizen and lives in Australia.

The only concern I have is whether or not I should fill out the CRS (Common Reporting Standard) form declaring my tax status in my home country to my bank in Australia. If I do, would I be charged (extra?) tax by the ATO despite all my assets are overseas? If I don't, what could possibly happen to me and my bank accounts here?

Please share your opinion :)

Financial

Comments

  • HighAndDry on 18/11/2017 - 01:21

    As long as you keep an eye on your accounts so you catch anything that happens before it gets out of hand, it shouldn't be an issue. As to what forms you need to fill out, that'd be worth a chat with an accountant.

  • chumlee on 18/11/2017 - 06:48
    +1

    CRS is just a data collection process financial institutions need to conpky with. If you state you are a tax resident of another country that info gets passed on to the relevant authority

    Most banks will close an inactive account after time and for accounts with money in it that is inactive, banks have to pass the money over to the government after 18 months i think it is

    • [Deactivated] on 18/11/2017 - 11:02

      Not true, my gf had a bank account with ~$70 inactive for over 3 years. She only realised when we went to open a joint account and they told her she was already a customer.

      • peterpeterpumpkin on 18/11/2017 - 13:24
        +1

        Nah it's definitely true that they inactivate accounts, though I don't know about the next step. I don't know if it's a regulatory thing or if there are strict balances and time limits adhered to but HSBC says it's to reduce fraud (unused accounts or mailing addresses are ripe for fraud).

        HSBC inactivated my account multiple times over several years. Commbank will inactivate an account with less than $10 in it after 3 months.

        Apparently it only becomes unclaimed money after 7 years under current legislation. http://asic.gov.au/for-consumers/unclaimed-money/

        I thought I could outsmart the English banks by keeping a bit in them but the same thing happened to me there. It's in the ether now…until I return to the UK.

        • cwongtech on 19/11/2017 - 01:51

          How about schedule two bank accounts to bounce $10 back and forth between them?
          Recurring pay-anyone schedule monthly :)

    • qwertyaz on 18/11/2017 - 17:15

      If you state you are a tax resident of another country that info gets passed on to the relevant authority.

      The last thing I want to happen is the info gets passed to my home country so they will stop me from transferring money to overseas. Can I just ignored this form and tell them I am not a tax resident of any other country?

      • chumlee on 18/11/2017 - 17:38

        I believe at some stage the form needs to be completed but just answer it the way you want. I doubt anyone checks it - most likely computer processed.

  • amrdeus on 18/11/2017 - 11:20
    +2

    One thing that might help a bit, is some banks like NAB don't charge a fee if you don't transfer money into it.

    • MrTweek on 19/11/2017 - 16:44
      +1

      Yep, or Citibank.

  • MrTweek on 19/11/2017 - 16:53

    I'd definitely keep a bank account if I were to leave the country for a while or for good.

    I will set up scheduled transfers between my 2 bank accounts so they both will have $2000+ transaction each month (avoid the $5 monthly fee and let them know I am still using my accounts).

    I would not keep a bank account that has monthly fees though.
    Better get one from a bank that doesn't charge fees at all. It's less maintenance and you don't need to leave $2000 in it, $1 is enough to prevent it from getting closed by the bank after 6 months.

    I will change my contact detail to my uncle's address who is a citizen and lives in Australia.

    You might even try to just use your overseas address.
    I have a bank account in Europe, and they have no problem accepting any address in the world as a contact address. They send me mail about stuff every 2 years or so.

Login or Join to leave a comment
Login Join