If you’re planning on immigrating to Australia, one of the things you’re going to have to think about is how you’re going to get your money out of South Africa and into Australia. South African residents are limited by the South African Reserve Bank as to how much money they can transfer out of the country, so it’s best to do your homework beforehand so you know exactly what you’re in for, in terms of numbers and paperwork. Doing your homework will also help you avoid hidden fees and costs that many companies attach to their international money transfers. Transferring money from South Africa to Australia doesn’t have to be complicated, or costly if you explore all your options thoroughly.
What do you need to know about exchange control rules when you want to transfer money from South Africa to Australia?
Exchange control regulations apply to all foreign exchange transactions from South Africa. These rules are made and enforced by the South African Reserve Bank (SARB) and breaking these rules may amount to a criminal offence in South Africa, which could result in prosecution and financial penalties. To make sure you’re on the right side of SARB’s rules and regulations, here’s what you need to know:
What is my annual foreign exchange allowance and transfer limit for sending money to Australia from South Africa?
Cross border transactions made by South African residents are subject to foreign exchange regulations. The current regulations make provision for three avenues by which South African citizens may move funds abroad:
Avenue 1: South African foreign investment allowance (FIA)
- This foreign investment allowance is also called a foreign capital allowance.
- Amount: R10 million per person per calendar year.
- South African residents living abroad or currently residing in the country can make use of the foreign capital allowance (if they have not formalised their financial emigration.)
- Transfer requirements: Individuals must be 18 or older, must obtain a Tax Clearance Certificate – FIA from SARS and have a green bar-coded South African identity document or a Smart ID card.
Avenue 2: Single discretionary allowance (SDA)
- Available to South African residents and residents temporarily abroad i.e. persons who have not formalised their financial emigration.
- Amount: R1 million per person per calendar year.
- Transfer requirements: Individual must be 18 or older and have a green bar-coded South African identity document or a Smart ID card. No tax clearance certificate is required.
Avenue 3: Special allowance (South Africa)
- Available to South African residents and residents temporarily abroad – in other words, individuals who have not formalised their financial emigration.
- Amount: unlimited – this applies where an individual wants to transfer more than their annual allowances offshore.
Transfer requirements: Individuals must be 18 years or older, obtain a Tax Clearance Certificate – FIA from SARS and have a green bar-coded South African identity document or a Smart ID card. SARS will also want to be involved in this process and will require a special application to be submitted for their approval.
How do you transfer money from South Africa to Australia?
Whether you’re looking for the cheapest, fastest or most convenient way to send money from South Africa to Australia, it’s worthwhile comparing online services in real-time.
Here are some of the ways you can transfer funds to Australia
If you’ve already signed up for a bank account with an Australian Bank, then you can do a telegraphic transfer in AUD into your account. If you’re thinking of the cash you’ll need to see you through the first few weeks after you touch down in Aus, a money vehicle like a World Currency card is a safe way to carry currency with you to use until you get all your financial accounts up and running that side. It will make point of sale payments and ATM cash withdrawals at any Visa merchant or ATM much easier.
You could also make your transfer using a foreign exchange company, also as a forex broker. This is generally the best option – in terms of cost, speed and ease of service – for large transactions, and it’s a good idea to make use of their personalised phone or email facility to ask all your foreign exchange questions and ensure you’re getting the best service at the best price.
FinGlobal: The cross-border financial services specialists
As foreign exchange specialists, FinGlobal has a seasoned team that can help you get all your financial ducks in a row in preparation for your move to Australia. We’ll be there throughout your journey – from planning to landing – to simplifying the facilitation of transferring your money to Australia, in compliance with SARB and SARS regulations to ensure that you have the smoothest possible landing on the other side.
In addition to forex and exchange control services, FinGlobal provides top-notch financial emigration services to South Africans looking for a fresh start in Australia. We’ll help you make the most of your next chapter, with assistance in cashing in your retirement annuities and transferring the proceeds to you. To see how we can make a difference in your financial future by helping you get your money out of South Africa to Australia, get in touch with us today.