- Do you need to move funds to China from Australia? Understanding the basic laws of international money transfers is crucial when sending money abroad.
- China regulates large remittances and may require you or the recipient to file paperwork and pay tax.
- Choosing the right financial entity to send funds to China can help you save on currency exchange rates and fees.
Whether you want to send money abroad to family or pay your overseas employees, sending money to China from Australia is easy.
Read on to find the best ways to transfer funds to China from Australia [AUD to CNY].
Need to transfer money to China from Australia?
Best ways to send money to China
Compare more money transfer services before you send money to China
Common reasons people transfer money to China
Sending money back home to family or offering financial support to a family member living abroad are the most common reasons people transfer money to China.
Business transactions are another common reason. Chinese companies supply numerous Australian businesses with goods or services. So, paying suppliers, contractors or overseas employees tops the business transfers list.
Other reasons include:
- Buying property overseas
- Running an ecommerce business
- Emigrating to China
- Getting married overseas
- Paying for education overseas
- Making charitable donations
Business vs personal
Whether you transfer funds from a personal or business account, there is no limit on how much money you can transfer to China.
Chinese law regulates large remittances. Banks and money transfer companies must report all overseas and domestic transfers of more than ¥50,000 (about $10,000). If you want to send a large amount, you and the recipient may have to provide proof of identity and residence. Moreover, the recipient may also have to provide proof of income and justify where the money comes from.
Monetary gifts are not taxed in China, meaning the recipient will not have to file a tax return or pay tax.
However, overseas income is subject to tax. Resident taxpayers are obliged to declare foreign income to the Chinese tax authorities. Foreign income includes:
- Money from salaries or pensions earned overseas
- Interest or dividend payments
- Income from selling an overseas property
- Equity transfers
How much money can you send to China from Australia?
You can send any amount as long as it doesn’t exceed your account’s maximum limit. Banks generally have a limit between $5,000 and $10,000 per transaction. Check with your bank before transferring funds because some accounts have a default limit set to $0, and you may have to visit the branch to increase it.
Money transfer companies have higher limits, generally above $50,000 for personal transfers. Business limits are higher.
For larger remittances, you can contact your bank or money transfer service and ask for a temporary or permanent limit raise.
How much does it cost to transfer money to China through a bank?
Whether you’re transferring money through the bank or a money transfer service, you’ll have to pay a fee or a currency conversion margin.
Banks generally charge both. Fixed fees vary from about $6 to $35 and are charged per transfer. In addition, banks charge a currency conversion margin that can go up to 5%.
Money transfer services can also charge fees and a margin, but most companies charge one or the other. Fees go up to about $10 per transfer (although there are exceptions), but the margins charged rarely go over 1%.
What to compare to get the best deal
Getting the best deal when transferring funds abroad is challenging if you don’t know what to compare. Here are the most crucial factors:
- Transfer options (bank account, ewallets, cash pick-ups)
- Payment options (bank card, bank transfer)
- FX margin
- Transfer speed
- Minimum and maximum limits