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How and what to investment with 80k AUD ?

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Old 16-01-2020, 10:46 AM   #1
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How and what to investment with 80k AUD ?

i've 80k aud in an overseas bank account . I plan to buy LSE listed SnP 500 etfs, the only brokerage i have which trade in LSE is standard chartered.

That meant that i've to exchange AUD to SGD to GBP (had inquired with SC yesterday, all funds in FCCY settlement accounts have to be originated from a checking/current account in SC) which will reduced my funds drastically.

a. Is there a workaround solution should i want to buy LSE listed SnP 500 etfs ?

b. if there isnt, what will be a viable lower cost (tax and FX rate) investment ? i have STI etf , reits in sgx and dont wish to expand this portfolio
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Old 16-01-2020, 11:01 AM   #2
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Isn't there are any other better brokers in Australia?
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Old 16-01-2020, 11:02 AM   #3
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Isn't there are any other better brokers in Australia?
australia has capital gains tax. so not planning to invest in ASX or use aussie brokerage
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Old 16-01-2020, 12:34 PM   #4
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i've 80k aud in an overseas bank account . I plan to buy LSE listed SnP 500 etfs, the only brokerage i have which trade in LSE is standard chartered.

That meant that i've to exchange AUD to SGD to GBP (had inquired with SC yesterday, all funds in FCCY settlement accounts have to be originated from a checking/current account in SC) which will reduced my funds drastically.

a. Is there a workaround solution should i want to buy LSE listed SnP 500 etfs ?
First of all, you don't need British pounds to buy a S&P 500 stock index fund (setting aside the wisdom of buying such a fund). U.S. dollars work great, and you can use CSPX. Australian dollars direct to U.S. dollars would be a lower cost currency exchange than a double exchange via Singapore dollars.

Second, you've probably got the wrong broker. Interactive Brokers would work well for the whole money trip, particularly if you can get your total IB account value up to US$100K. (AUD 80K is a good start.)
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Old 16-01-2020, 12:38 PM   #5
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australia has capital gains tax.
That's not going to matter if you're a non-resident, except for certain real assets such as homes. And it's probably not going to matter if you're a resident of Australia because then global assets would be subject to capital gains tax.
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Old 16-01-2020, 12:43 PM   #6
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That's not going to matter if you're a non-resident, except for certain real assets such as homes. And it's probably not going to matter if you're a resident of Australia because then global assets would be subject to capital gains tax.
so what you meant is that if i buy from lse using a singapore based broker, the return of investments are post tax too ? problem is that if i want to close my positions, i will have to convert USD to AUD to SGD (depending on the aussie broker)
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Old 16-01-2020, 01:34 PM   #7
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so what you meant is that if i buy from lse using a singapore based broker, the return of investments are post tax too ?
Would you clarify: are you a tax resident of Australia or not?
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Old 16-01-2020, 06:48 PM   #8
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I have a question too
I've a stash of cash in australia
I'm not a tax resident of Australia.
What kind of tax would my dividend or capital gain be subjected to?
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Old 16-01-2020, 08:53 PM   #9
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I’m a bit puzzled why there are so many Australian tax questions after somehow acquiring a pile of Australian dollars. Aren’t these questions the ones you ask before this situation arises?

That said, assuming you’re a nonresident and have never been a resident, here are some basics as I understand them:

1. Bank interest is subject to withholding tax.

2. Dividends...”it depends.” There are “franking” rules that vary depending on the security.

3. Capital gains, generally not on stocks, bonds, and funds. Real property, yes.
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