How to bring money from South Africa to Australia: Sarah’s story

After living in Perth for almost 15 years, Sarah* decided it was finally time to consolidate her finances. Like many South Africans living abroad, she had built up investments back home over the  years. But moving funds to Australia is not always as simple as transferring money between bank accounts.

Before leaving South Africa, Sarah retained several investments, including a retirement savings product, managed funds and a share portfolio. Over time, she also received an inheritance and invested part of those funds in South Africa.

Eventually, she sold her investments and redeemed her retirement savings. Once the proceeds were available, she had approximately AUD 250,000 sitting in a South African bank account, ready to transfer to Australia.

Her question seemed straightforward:

“Can I simply move the money to Australia, or are there tax issues I need to consider first?”

The answer, however, was more complex than it seemed.

Why transferring money from South Africa to Australia is complex

Many people assume this is just a simple bank transfer. But it’s also shaped by tax rules in both countries and South Africa’s exchange control requirements

What matters is how the funds were generated, whether tax has been correctly paid and how those funds will be treated once they reach Australia. Overlooking any of these areas can lead to delays, additional tax or frustrating compliance issues.

Key tax questions before transferring funds

Before moving money, it is important to clarify a few points:

• Has South African tax been correctly settled on all investments and redemptions?
• Have exchange control and tax residency requirements been fully met?
• Are there Australian tax implications from the investment disposals?
• Can South African taxes paid be recognised in Australia?
• Is there sufficient documentation to support the source of funds?

Addressing these upfront reduces the risk of delays, penalties and costly corrections later.

Australian tax implications when transferring money from South Africa

In Australia, it’s not about the transfer itself, it’s about how the money was earned.

The timing of your investment sales and your tax residency at that point will determine the outcome. This affects how the income is reported and whether foreign tax credits can be used to reduce any Australian tax.

In Sarah’s case, timing made a real difference. Getting this wrong can mean paying more tax than necessary.

South African tax and exchange control requirements explained

Before any funds move, the South African side needs to be in order.

This means confirming your tax residency, ensuring all SARS obligations have been met and that the correct tax has been paid on any disposals. You will also need appropriate documentation to support the transfer under exchange control rules.

Without this, transfers can be delayed, questioned or even blocked.

How to avoid double taxation when moving money to Australia

For many people, double taxation is one of the biggest concerns when moving money between countries, but it is often avoidable with the right planning.

You need to ensure the tax treatment is aligned across both countries. This includes getting the timing right, making use of foreign tax credits where available and keeping clear records to support your position.

This is where having the right advice makes a real difference.

How Sable International supports cross-border transfers

Sarah approached Sable International Tax Australia before making the transfer, allowing her to understand her full position before any funds moved.

From an Australian perspective, this included:

• Reviewing her tax residency history
• Assessing the timing and nature of her investment disposals
• Identifying any potential Australian tax exposure
• Determining how foreign tax paid would be treated
• Ensuring all reporting requirements were met

At the same time, Sable International’s South African Tax division ensured her South African position was fully compliant by confirming her tax residency status, reviewing the tax treatment of her investments, verifying taxes paid and preparing the documentation required to support the transfer.

The benefits of coordinated South Africa and Australia tax advice

The real benefit came from the collaboration between the Australian and South African teams.

Rather than treating the matter as two separate processes, Sable International’s advisers worked together to deliver a unified solution. This resulted in:

• Faster transfers with fewer delays
• Reduced risk of double taxation
• Fully compliant supporting documentation
• Clear understanding of reporting obligations
• Confidence that nothing had been overlooked

For Sarah, this meant her funds could be transferred without uncertainty or last-minute complications.

Transferring money from South Africa to Australia: What to do next

For many South Africans living in Australia, money held offshore often reflects years of saving, investing or family inheritance.

While moving it across might seem straightforward, the tax and compliance side is rarely that simple.

If it’s not handled properly, you could face extra tax or frustrating delays. With the right advice, your funds can move smoothly and without unnecessary complications.

* Disclaimer: This example is for illustrative purposes only and does not constitute tax advice. Individual circumstances will affect the tax outcome.

Speak to a cross-border tax specialist before you transfer your funds to avoid costly mistakes and ensure everything is handled correctly from the start. Contact our team today at email [email protected] or call +61 3 8651 4501.