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Moving family wealth from Indonesia to Australia: planning the transfer

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Parents in Indonesia often help children in Australia buy a home, start a business or build investments. Sometimes the whole family plans to move. How the money moves, and in whose name the assets end up, can matter for years: for tax, for protection if a child separates, and for what happens when the parents pass away. This guide sets out the Australian questions to ask before the transfer, not after.

Gift, loan, or something else?

Australia has no inheritance tax or gift tax as such. That does not mean a transfer is neutral. How you document it can make a real difference:

• An outright gift is simple, but the money then belongs to the child. If the child separates, it may be treated as part of the property pool.
• A documented loan can give the parents a way to recover the money, or protect it in a separation, if it is properly drafted and managed.
• Holding assets through a trust or company can add protection and flexibility, but brings its own tax and running costs, and some structures cost more for foreign persons.

Banks in both countries will also usually ask for evidence of where the money came from. Having the paperwork ready avoids delays at settlement.

Buying property in Australia

• Foreign persons generally need approval from the Foreign Investment Review Board (FIRB) before buying residential property, and are currently restricted from buying established homes, with limited exceptions.
• States add extra stamp duty and land tax for foreign purchasers and owners. Who is a “foreign person” for each tax is not always obvious, especially for temporary visa holders and trusts.
• Buying in a child’s name, the parents’ name, jointly, or through a structure each has different consequences for tax, control and inheritance.

We act on Victorian property purchases and sales for overseas buyers and coordinate with lawyers in other states. See also our guide on buying a Melbourne apartment for a child studying in Australia.

Plan for the parents, not just the children

Parents who fund Australian assets should also think about their own position: what happens if they need the money back, if a child’s marriage ends, or if a parent loses capacity. An Australian will and enduring power of attorney, and in some cases a carefully worded loan or trust deed, protect the parents as well as the next generation.

Tax residency changes the picture

Once a family member becomes an Australian tax resident, their worldwide income may be taxed in Australia, and distributions from overseas trusts or companies can be treated in complex ways. If a child, or the whole family, is about to become Australian resident, it is usually best to plan transfers before that happens. We work alongside your accountant in Australia and advisers in Indonesia; see our article on a child becoming an Australian tax resident and our overview of cross-border wealth planning for Asian families.

How Chua Tan Associates helps

Our principal has a commerce background, grew up in a family business and has worked across Asia. We coordinate the Australian legal side of a family’s wealth transfer: property purchases, loan and gift documents, wills, testamentary trusts, powers of attorney and Australian companies, working with your accountant and advisers overseas so the plan works in both countries.

More guides for families in Indonesia

• Family Business Succession When the Next Generation Lives in Australia
• Family Inheritance Disputes Across Indonesia and Australia
• Moving to Australia with Your Family: Permanent Residency and Planning Your Assets
• Inheriting Melbourne property when a parent dies in Indonesia
• Buying a Melbourne apartment for a child studying in Australia
• Using Indonesian documents in Australia
• An Australian will alongside your Indonesian will
• All our services for families and businesses in Indonesia

Important: this article is general information about Australian law as at October 2026. It is not legal, tax or migration advice, and you must not rely on it to make decisions. Laws and visa programs change, and the right answer depends on your circumstances. Please book a consultation for advice on your situation. We do not advise on Indonesian law; we work with your Indonesian advisers.