Families from mainland China, Hong Kong, Taiwan, Malaysia, Singapore and Indonesia move money to Australia for ordinary reasons: university fees, help with a child’s home, a parent’s retirement, or the proceeds of a business or flat sold back home. Most are lawful. Difficulties tend to arise from missing paper trails, uncertainty about what the money legally is, and timing around tax residency.
Moving money is not, of itself, a taxable event in Australia. The issues are how the transfer is reported, what the bank may ask to see, how the money is characterised, and what the country it leaves requires. How they apply to a particular family depends on the facts.
How transfers into Australia are reported
Reporting is administered by AUSTRAC under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the AML/CTF Act). It is routine, and the ATO can use AUSTRAC data in data-matching.
- International transfers. Banks and remittance providers generally report the international transfer instructions they send or receive, whatever the amount.
- Large cash transactions. Physical cash deposits or withdrawals above a reporting threshold are reported by the bank.
- Cash at the border. Physical currency or bearer negotiable instruments above a threshold carried, mailed or shipped into or out of Australia must be declared.
- Structuring. Breaking up transactions to avoid reporting can be a criminal offence under the AML/CTF Act (sections 142 and 143), even where the money itself is legitimate.
What the bank will ask
Banks must know their customers and monitor transactions. An unusual transfer, funds from third parties or a link to a politically exposed person may lead to enhanced customer due diligence. The bank may then ask about the source of funds (where this particular money came from) and sometimes the source of wealth (how the customer’s overall wealth was built). If not satisfied, the bank may hold or return the transfer, or review the account.
How Australian tax law characterises the money
A gift
Australia has no gift tax, and a genuine gift from a relative overseas is generally not income of the recipient. Where a “gift” in substance comes from a company or trust controlled offshore, section 99B of the Income Tax Assessment Act 1936 (Cth) may be relevant.
A loan
Where money is meant to be repaid, a family may want to consider whether and how to document it as a loan. Interest paid to a lender overseas may attract Australian interest withholding tax and may also be taxed in the lender’s country. Whether a family loan is treated as a real debt can become important later, for example if the borrower separates or either party dies.
An inheritance
Australia has no inheritance tax, and an overseas inheritance is generally not income, although inherited assets can carry capital gains tax (CGT) consequences when later sold.
Proceeds of selling overseas assets
Bringing sale proceeds into Australia is different from the sale itself, which may be taxable. An Australian resident is generally taxed on worldwide capital gains, with a possible foreign income tax offset for foreign tax paid on the same gain, so the timing of a sale relative to becoming resident can matter.
Section 855-45 of the Income Tax Assessment Act 1997 (Cth) can affect the cost base of certain assets held when a person becomes a resident, subject to exceptions. Separately, the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 changes how gains accruing from 1 July 2027 are taxed, replacing the CGT discount with indexation and a minimum tax. How these rules interact for a particular asset needs advice.
Income
Once a person is an Australian resident, overseas salary, rent, interest and dividends are generally assessable whether or not the money is brought to Australia.
A trust distribution
Distributions from a foreign trust can be assessable under section 99B in some circumstances.
Foreign exchange gains and losses
Division 775 of the Income Tax Assessment Act 1997 can produce foreign exchange gains or losses where currency is held or owed and rates move. Because capital gains are generally worked out in Australian dollars, currency movements alone can affect the result.
Timing around becoming a tax resident
- When residency starts. Residency does not necessarily begin on 1 July; it depends on the facts.
- Your position at that date. Balances, valuations and the source of funds at the date residency begins may matter later.
- Offshore structures. Changing offshore trusts or companies after arrival can have Australian tax consequences.
Home-country exit rules
- Mainland China. Individual foreign currency purchases are governed by State Administration of Foreign Exchange (SAFE) rules, including an annual facilitation quota and restrictions on capital account uses such as buying property or securities overseas. Using other people’s quotas to split a purchase is prohibited and can lead to inclusion on SAFE’s watch list (关注名单) and penalties. Lawful channels are a matter for PRC legal advice.
- Hong Kong and Singapore. Generally no exchange controls, although cross-border cash declaration rules apply.
- Malaysia. Bank Negara Malaysia’s foreign exchange policy generally allows residents to invest abroad, subject to conditions.
- Indonesia. Foreign exchange generally moves freely, subject to documentation requirements.
Using the money to buy property
Foreign persons generally need FIRB approval to buy residential land, and a temporary ban on most foreign purchases of established dwellings applies from 1 April 2025 to 30 June 2029 (as at October 2026). Exceptions exist.
An illustrative example
A hypothetical scenario, not a real case.
A couple from Kuala Lumpur moved to Melbourne with savings, Malaysian shares and a flat in Kuala Lumpur, and wanted to help their daughter buy a home. Questions arose about when their residency began, how the shares and the flat might be treated if sold later, how the help for their daughter should be characterised, and what their Wills should say about it. The right approach depended on facts that needed advice.
Records: questions to discuss with your adviser
- What is this money in legal terms: a gift, a loan, an inheritance, sale proceeds, income or a trust distribution?
- What documents show where the money came from?
- Should a family transfer be documented formally, and how should it fit with the family’s Wills?
- What did I own when I became resident, and does it matter?
- What does the sending country require?
Frequently asked questions
Do I pay tax on money transferred to Australia from China?
The transfer itself is generally not a taxable event. Whether tax arises depends on what the money is: a genuine gift or inheritance is generally treated differently from the income or capital gains of an Australian resident.
Is there a limit on how much money I can bring into Australia?
Australia does not generally cap transfers, but they are reported, and cash above a threshold must be declared at the border. The sending country may have its own limits.
Can my relatives in China each use their own quota to send me money?
Each person’s quota is intended for their own genuine use, and using several relatives’ quotas for one purpose can be treated as prohibited splitting. This is a question for PRC legal advice.
Every family’s situation is different, and the answer often turns on details. Book a consultation so we can review your documents and circumstances before you act.
How Chua Tan Associates can help
Chua Tan Associates assists families with documenting how money moves to Australia and what it is, including gift deeds, loan agreements and related Wills. Justin Chua trained in accounting (Bachelor of Commerce, accounting major) and advises on the legal and tax structure of family wealth together; he is an affiliate member of STEP (the Society of Trust and Estate Practitioners), a Nationally Accredited Mediator and an Accredited Family Business Advisor. We work with the family’s accountant, registered tax agents and lawyers in Asia, our notary public can certify documents needed overseas, and we advise in English, Mandarin and Cantonese.
Important: This article is general information only and must not be relied on. It is not legal, tax or financial advice, does not take your circumstances into account, and may not reflect changes in the law after publication. Laws of other countries may also apply. Do not act or refrain from acting on the basis of this article. Reading it or contacting us does not create a lawyer–client relationship. Please book a consultation for advice on your situation.
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Chua Tan Associates acts for families, executors, trustees and their professional advisers in estate planning, estate administration and estate disputes in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal or tax advice.
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