
Savings account offer: Virgin Money Boost Saver (25+ year olds)
Customers aged 25+ earn an ongoing variable 2% p.a. each month you deposit at least $2,000 into your linked Virgin Money Go Transaction Account, make 5+ transactions and give 32 days' notice to make a withdrawal or transfer by enabling the 'Lock Saver' feature. Plus, 5,000 bonus Virgin Money Points when you open a new account, for a limited time only.The 2% p.a. is made up of the Base Rate of 0.05% p.a. + Bonus Rate of 1.45% p.a. + Notice Rate of 0.5% p.a (optional with 'Lock Saver'). The bonus rate is available on balances up to $250,000.
Am I taxed the same on savings regardless of the type of account?
Hi Kylie!
Taxes can be a bit of a headache, can’t they? Interest earned from financial institution accounts and term deposits is considered as an investment income. Others falling in this category are:
Check with the Australian Taxation Office (ATO) to see how these accounts are taxed or talk to a tax accountant for this matter. :)
Hope this helps.
Cheers,
Jonathan
I have question regarding transfers from family member accounts.
If I transfer money to account belonging to a family member, will it have an impact on the income tax? even if sometimes I ask this family member to make payments from his account for my expenses? (more related to daily activity, bills,tickets, ..)
I’mt talking about transfer to parents/childrens/siblings which are not employed in Australia during the last year
Hi Tom,
Thanks for your question.
If you are transferring to a child, the tax impact will depend on who has the control of the funds. As a rule, if a parent provides the funds for the child’s account and spends or uses the funds in the account as they wish, the parent must declare interest earned from the account on their own tax return. However, in case where the funds in the account will be made up of the child’s own money and if the funds in the account are not used by any person other than the child, the interest earned is classified as the child’s income. If the child’s only source of income is interest totalling less than $416 for the financial year, they will not have to file an income tax return.
This is just a general rule which may not apply to your specific situation. You may have to get in touch with a tax specialist to confirm.
Cheers,
Anndy
Thank you Anndy
perhaps my question wasn’t clear.
if my family member wants to transfer for example 30.000, to my account – and I will be using this money for example to pay bills online, charity on this family member behalf, will the bank ask me to report my the 30.000 as my income, which requires some tax?
We want make it simple it’s a matter of making daily activity easy, not transferring millions from account to another account.
Hi Tom,
Thanks for your question and I’m sorry for the confusion.
Kindly note that in regards to savings account, you will only pay tax on the interest earned. As for the impact of the $30,000 to your overall tax, that is something I am not sure of. It would be best if you seek advice from an accountant or financial adviser who is more knowledgeable about tax matters.
Cheers,
Anndy
Do I have to pay tax on my saving account?. I’m 68 years old, and retired 10 months ago. I did not provide my TFN with the bank.
Hi Moon,
Thanks for your question.
Generally, interest earned on a savings account is subject to taxes. You don’t have to provide your TFN, but if you don’t the bank is legally required to deduct tax from any interest earned on the account above a certain threshold.
Cheers,
Anndy