The value of Australian Government bonds has soared over the last few years.
But they have come with a host of other risks too.
Key points:Bonds held in the foreign exchange system can only be exchanged for Australian dollars.
Some foreign exchange markets have been volatile and have led to the devaluation of some Australian Government Bonds.
How does this affect Australia’s economy?
The country has been hit by a series of economic shocks in recent years, from a sharp drop in the price of oil to the sharp drop of the value of the Australian dollar.
What are the risks?
Bonds have been a major part of the nation’s economic recovery, but many are held overseas.
Bonds are often sold to people in Asia, the Middle East and the African continent, where they are often used to buy things like cars, watches and clothing.
There are many foreign exchange brokers who do business in Australia and they may offer you a lower interest rate than they would for an Australian bond.
The Australian Government has always maintained that the bonds are not a tax, and have not claimed the right to deduct them from income.
It also does not make any claims for any tax benefits from holding bonds in overseas jurisdictions.
What should I do if I’m worried about my bond?
If you think you might be being targeted, or you are concerned about your personal finances, you should contact the Foreign Exchange Council to find out what you can do.
There is no need to rush to sell your bonds, as the foreign market is volatile and you should do your due diligence before making a decision.
You can also contact the Australian Taxation Office if you think your bonds are subject to a levy, which may affect your income.
You might also want to contact your bank to see if it will charge you interest on your bond, and ask for details on any tax charges.
What can I do to protect myself from tax?
If there is a levy on your bonds you may be able to reduce your tax liability by transferring your bonds overseas.
This may be worth it if you need to move your investments around, or if you’re a small business owner and want to avoid a levy.
However, you may want to consider selling some of your bonds.
You may find that the higher interest rate you will pay on the bonds will increase your taxes.
If you are buying a house, you can transfer the house to a foreign buyer and put it in a different name.
If you live in Australia you might need to register the foreign buyer as a foreign owner of the property.
If the foreign owner wants to buy the property, he or she must pay the GST.
Find out more about foreign ownership.
You may also want a tax adviser to help you understand your tax situation.
You should also talk to your bank about whether it will impose any charges on your investment.
If there are any tax-related matters that are being dealt with by the tax office, contact the ASIC for more information.
What do I do after selling my bonds?
You can sell your foreign exchange bonds at a low rate of interest and have them exchanged for a lower rate of money.
If your bonds have been held in overseas countries, they may be taxed in Australia.
This is why you should get advice from your bank before making any investment decisions.
If the bonds you sold have not been taxed, it is important to understand the relevant provisions of the tax laws in your home country.
If a foreign company holds Australian shares, for example, they will be taxed as Australian shareholders.
If they have been sold in a tax haven, you will have to file an Australian tax return.
The foreign exchange market is highly volatile and foreign exchange brokerages often offer low interest rates and may charge you a higher rate than you would pay in Australia for the same asset.
If buying a car, for instance, you could choose to pay a higher interest rates than the market would otherwise allow.
The government says that foreign exchange dealers will be subject to no charges on the sale of foreign currency, which can be used to help offset the Australian Government’s foreign currency tax.
You could also consider selling your bonds in a low-interest market, or in a country with lower taxes.
For example, in the UK, you would need to pay tax on the money you received.
If selling your foreign bonds, you might also need to make a tax return and pay a small tax on any interest you pay on your savings.
You would need the advice of your tax adviser if you decide to sell or buy bonds.