A guide to Australia

Careers 

Most expats don't move to Australia to progress their careers. But, with a stable economy, low unemployment and the highest minimum wage, it can be a good reason to stay longer. The salaries on offer in Australia are often generous, and normally more than enough to compensate for the generally higher prices.

Education 

Australian education and children's development is highly rated. Most children attend government-funded public schools within their catchment area, which can push property prices up in areas with highly rated schools, as in the UK. There are also few private schools, but with long waiting lists and high fees. Most faith schools are Catholic-run and can be a more cost-effective option than sending children to fully private schools. There aren’t many international schools, but you can still find a selection of independent schools offering an international education and qualifications. Again, these don’t come cheap.

Moving money

Putting the right banking arrangements in place is vital for expats around the world. You want to be able to access and transfer money easily, and with a bank you can trust to comply with international regulations. Most people have two banks – in their home country and local to where they’re living. But, if your bank has a global network, you may be able to set up an account ahead of your arrival, which gives you time to assess the financial market.

It’s important to understand how foreign exchange works and how fluctuating exchange rates can affect you. When you’re juggling finances in multiple currencies, remember that the currency markets can move quickly and make a big difference to the value of your money.

To help you reduce the risk of fluctuating currency, you could choose a foreign exchange that lets you fix an exchange rate for a fixed period of time. Then you’ll know exactly how much you need to convert, whatever happens in the market.

Budgeting 

When you’re looking to move to a new country, you need to consider how a change in the cost of living could affect your finances. If you’re moving with your job, sometimes your employer may help with expenses, such as accommodation or school fees, but a lot of these perks have been cut back recently due to the economic downturn. Remember to account for setup costs, such as buying furniture or a car and arranging insurance, when you’re thinking about your budget.

Costs

Some of our offshore accounts have a monthly fee, such as the International Current Account, whereas others, like the Premier International Account, don’t. Both offer fee free International Payments (correspondent and recipient bank charges may apply) and 24/7 worldwide access. Plus, the Premier also includes worldwide travel insurance for you and your family, which is underwritten by AWP P&C SA and administered by Allianz Assistance, which is a trading name of AWP Assistance UK Ltd. Eligibility criteria, terms and conditions apply. 

Financial planning

While it’s going to be a busy time, it’s also worth setting some time aside to review your financial plans, such as whether you want to open any offshore accounts. They offer the convenience of keeping your money in one place, so you can stay with the same bank no matter where life takes you.

Your expat status could give you new opportunities that weren’t available to you at home. However, tax rules differ from country to country, so if you’re unsure about your personal tax obligations, you should seek professional advice. 

Lloyds Bank International Private Banking is by your side every step of the journey as you start your new life abroad. We offer international knowledge, experience and dedicated expert support to help meet all your financial needs. From savings  to international payments and transfers, we can help you navigate the complex world of wealth management away from home.

Security

Offshore accounts are not protected by the Financial Services Compensation Scheme (FSCS), which protects savings up to £85,000 with authorised UK banks and building societies.

However, our accounts are covered by other schemes. The Jersey Bank Depositor Compensation Scheme, the Isle of Man Depositors’ Compensation Scheme and the Guernsey Banking Deposit Compensation Scheme offer protection for eligible deposits of up to £50,000.

Tax 

You’ll need to pay income tax for personal income like salary and wages, self-employment income, business income and capital gains. The tax authority is the Australian Taxation Office (ATO), and the tax year runs from 1 July to 30 June, with the tax return date of 31 October. 

You should apply for a tax file number (TFN) so that the right amount of tax can be withheld from your wages. If you run a business, you should apply for an Australian business number (ABN). The bank and/or your employer will ask for these, and if you don’t provide a TFN or ABN, you’ll be charged the highest rate of income tax. You can apply for a TFN or ABN online.

Australia has a double tax treaty with many countries, including the UK. You can apply for an offset so that you aren’t charged twice.

There is also a Medicare Levy for residents that is charged at a rate of 2%, which is for health services. Higher income resident taxpayers may need to pay an additional 1-1.5% surcharge, but lower income taxpayers may not have to pay the levy or could pay a reduced amount. The percentage to be paid will be dependent on the upper and lower thresholds.

In Australia it’s compulsory for employers to pay a minimum percentage of employee earnings into a private superannuation (a pension). For both residents and non-residents – if your total taxable income and superannuation contributions are more than the threshold, you may need to pay Division 293 tax. Income or superannuation contributions over the threshold is taxed but can be paid by the individual or deducted from the superannuation contributions.

For more information about taxes, visit www.ato.gov.au.