How to Transfer Money from India to Australia for International Students

Why Do People Transfer Money from India to Australia

Students living in Australia may require money to sustain living there! Here are multiple reasons to send money abroad to International students studying in Australia:

• Tuition fees
• Administrative fees
• Living costs like accommodation, and food
• Utilities
• Transportation costs
• Health insurance

Families often transfer money from India to Australia to pay for these expenses to ensure that their children can focus completely on their studies without any financial worries.

How to Send Money from India to Australia

Before we explore the ways to transfer money from India to Australia, it is important to understand that transfer money from India to Australia for education purposes can attract certain regulations and tax implications.

The Central Bank of India, RBI (Reserve Bank of India) issued a Liberalized Remittance Scheme (LRS), wherein it is clearly stated that Indian residents are allowed to remit a maximum of USD 2,50,000 in a single financial year. This limit comprises tuition fees, living expenses, accommodation and other related costs.

Further, effective from October 1, 2020, TCS (Tax Collected at Source) is levied on foreign remittances for educational purposes under LRS. Tax rates for TCS are as follows:

If the amount is below INR 7,00,000 in a financial year	No TCS
If the amount exceeds INR 7,00,000 in a financial year	5% TCS
If the amount exceeds INR 7,00,000 in a financial year, if remittance is made through an education loan	0.5% TCS

Transfer money from India to Australia can be done through several methods, each offering different advantages in terms of speed, cost, and convenience. Here are the options available. 

Before choosing a payment method for international money transfers, always align your specific needs and preferences with the features of the service provider and then choose the option that suits your needs the best.

1. Wire Transfers or Bank Transfers

If you have a savings account, you can transfer money from India to Australia using SWIFT transfer. Wire or Bank transfer is an Electronic Funds Transfer (EFT)

Process:

1. Visit a bank or use the bank’s online service
2. Provide the recipient’s details (name, International Bank Account Number, SWIFT Code, etc.)
3. Specify the amount to be transferred
4. Confirm exchange rates and fees
5. Authorize transfer

Processing Time:

Transfers through EFT typically take 2-5 business days. 

Fees:

• Transfer fees may range from INR 500 to INR 1500.
• Exchange rates margins and other taxes may also apply.

Pros:

• Secure and reliable
• Direct deposit into the recipient’s bank account

Cons:

• Fees are higher compared to other methods of remittance.
• Exchange rates may be less favourable.

2. Online Money Transfer Services

There are multiple options available in online money transfer services. HiWiPay is among such options to send money from India to Australia for international students.

They allow swift transfers with flexible payment options.

Process:

1. Create an Account on the website or through the app
2. Enter the amount to be transferred and other details
3. Digitally sign the A2 form
4. Confirm the amount including TCS to generate challan
5. Make payment via any of the available payment methods.

Processing Time:

Transfers typically take place under 24-48 hours. 

Fees:

Online remittance transfer platforms generally charge 1%-2% markup and transaction fees. The rates are competitive and with generally minimum margins.

Pros:

• Lower fees as compared to other methods
• Better exchange rates
• Fast and convenient
• Easy tracking

Cons:

• Some of the services may have a limit on the amount that can be transferred

3. Forex Cards

There are multiple types of forex cards that can be used to transfer money from India to Australia for international students.

Process:

1. Get a Forex card from a bank or Forex service provider.
2. Load the card with the desired amount in INR. The amount will be converted into Euros based on the prevailing exchange rate.
3. Activate the card as per the instructions and start using the card immediately.

Processing Time:

Forex cards can be used immediately once the card is loaded with funds. 

Fees:

Forex card costs include ATM withdrawal fees, currency exchange fees, etc. which may vary depending upon the issuer of the card and the type of card.

Pros:

• Enhanced Security
• Better monitoring

Cons:

• Multiple fees included
• Unfavourable exchange rates

4. International Demand Drafts

International demand drafts are now a less commonly used method of remittance since they involve additional steps and fees compared to electronic transfers.

Process:

             1. Visit the designated bank branch

            2.  Fill out the form and provide the recipient’s details

            3.  Submit necessary documents

            4.  Pay the draft amount along with associated fees

Processing Time:

Transfers typically take place under 3-5 business days. Time may vary depending on factors like the bank’s processing time, courier services, etc.

Fees:

Fees for transfer may vary from bank to bank, and the amount being transferred. 

Pros:

Secured and reliable

Cons:

• Fluctuating exchange rates
• Not suitable for urgent situations.

Steps to Transmit Money Directly to a Person in Australia

There is a certain way to transfer money directly to a person in Australia. Steps can change depending on the method you’re choosing.

Here’s a step-wise explanation of how to transfer money from India to Australia:

1. Bank Transfer

Step 1: Obtain the recipient’s bank details including full name, bank name, BSB (Bank State Branch), account number and SWIFT code

Step 2: Visit your bank branch or avail of online banking, if available

Step 3: Enter details like the recipient’s bank details, and specified amount, select currency, confirm and then submit the transaction.

Step 4: Pay transfer fees and other charges as applicable.

Step 5: Always remember to ask for a transaction receipt or confirmation for your records.

2. Online Money Transfer Services

Step 1: Create an account by signing up on the platform.

Step 2: Verify your identity by providing necessary identification documents. 

Step 3: Enter the recipient’s details including name, bank information, email address, etc.

Step 4: Specify the amount to be transferred and choose the payment method.

Step 5: review the details, pay the transaction fees, and confirm the transfer.

3.International Money Orders or Bank Drafts

Step 1: Visit your bank or any service provider and purchase a money order or bank draft in AUD

Step 2: Mail the money order or bank draft to the recipient in Australia.

Step 3: Once received, the recipient can deposit the money order or bank draft into their bank account.

4. Mobile Payment Applications

Step 1: Download the app and create an account.

Step 2: Link your bank account or card through which you’re going to transfer.

Step 3: Enter the recipient’s details like the recipient’s mobile number or app username.

Step 4: Enter the amount to be transferred

Step 5: Review the details and confirm the transaction

By carefully following these steps, you can securely transfer money to international students in Australia.

Points to Keep in Mind While Transferring Money to Australia from India

There are certain aspects that need to be taken into consideration while making transfers to Australia. They include:

1. Beneficiary’s Information: Accurately gather beneficiary’s information including International Bank Account Number (IBAN), and SWIFT Code, also known as the Bank Identifier Code (BIC) which serves as a unique identifier for the recipient’s bank.
2. Exchange Rates: Exchange rates tend to fluctuate frequently depending on the prevailing market conditions. Further, transfer service providers and banks may add a margin to the prevailing exchange rate. Always compare rates from different service providers.
3. Associated Fees: Multiple fees are included in the forex payments. It includes transfer fees, and receiving fees (the recipient’s bank may also charge fees for receiving funds).
4. Regulations and Compliance:  There may be some regulations governing foreign remittances. Always ensure that the transfer is in compliance with such regulations.
5. Tax Implication: Tax liabilities may arise with international transfers.
6. Security and Reliability: Always ensure that the service provider for transfer is trustworthy and has a robust system in place.

The above-mentioned list is not exhaustive. There can be certain other factors and conditions that may affect the transfer in certain areas. Always make sure to check every associated factor.

How Long will an International Money Transfer Take

As mentioned above, international money transfers may take 2-5 days in some cases.

But with HiWiPay, you can easily make remittances within 24 hours! With our seamless services, keep your money secure and worries at bay! 

Benefits of Transfer Money from India to Australia with HiWiPay

When making international money transfers from India to Australia for international students, let HiWiPay be your aid. Wondering what we have to offer? Read below:

• Transparent fee structure and cost-effectiveness: We never charge any hidden fees and are always transparent!
• Secured transfers: You can trust us with your money!
• Data security: We use an encrypted format for documents and hence, there is no risk of data leak.
• Competitive rates: You can compare us with anyone, but we ensure to provide the best quality services at competitive prices.
• Ensured compliance with regulations: Our services are always compliant with laws and regulations governing the transfers.
• Faster remittances: While other services may take days to transfer your money, we get the deal done in as low as 24 hours!
• No hassle of repetitive paperwork: Complete your KYC once and do multiple transfers.
• Flexible payment methods: We offer an array of payment methods to choose from for your convenience.

Conclusion

While making an international money transfer from India to Australia, there are multiple things to be taken care of. Always ensure that you’re making transfers with a reliable transfer service provider that is also cost-effective. Also, choose a payment method that matches your requirements. Choosing the wrong method can cost you time and money. Since different methods take different times to complete transfers, you should always choose the alternative that matches your timeline and how early the international student needs the funds.

FAQs for Transfer Money from India to Australia

References:

Master Direction – Liberalised Remittance Scheme (LRS)

https://www.rbi.org.in/scripts/notificationuser.aspx?id=10192#2. Accessed 14th June 2024

Sending Money Abroad for Education

https://economictimes.indiatimes.com/wealth/tax/tcs-on-foreign-remittances-sending-money-abroad-for-education-watch-out-for-these-steps-to-avoid-20-tcs/articleshow/101590487.cms?from=mdr. Accessed 14th June 2024

What is Online Forex Outward Remittance

https://retail.onlinesbi.sbi/sbijava/retail/html/fxout_FAQ.html. Accessed 14th June 2024