Redrover

Also worth highlighting that you only 'break even' for tax purposes and pay no tax anywhere on the rent if taxable rental income (see definition above) <= 0. Note this does not allow you to deduct capital repayments, ie where part of your mortgage payments each month reduce the amount you owe. So your statement 'covers your mortgage and fees so you break even' should read 'covers your mortgage interest and fees so you break even'.

Easiest way of thinking about tax on uk rental income for perm residents whose main income is in Aus: Taxable rental income = rent received - mortgage interest paid - repairs - agents fees - wear and tear (if furnished) You pay tax on the taxable rental income based on Aussie income tax rates. So add this income to your other Aussie income and work out the total income tax due. The difference between this and the income tax you would owe without the rental income is the tax you have to pay on the rent. Generally this means the rent is taxed at your highest Aussie tax band although it may push you into a higher band. You are not taxed twice. The only subtlety is you may pay some of that to the uk government and some to the Aussie government as per rules listed earlier in the thread. This depends on your personal situation. The total is the same.

For the rental income: you'd pay tax in the uk on your rent minus allowable deductions (mortgage interest, repairs and maintenance, agents fees, wear and tear on furnishings) but you also qualify for the uk tax free allowance. The uk rental income minus deductions would also count as additional income in Aus so would incur Aussie income tax but you can offset this with any tax paid in the uk (the reciprocal arrangement). In reality unless you own an expensive home you won't pay much tax in the uk but will pay in Aus at your top income tax rate.

All depends where you're moving from and to. But broadly, assuming your moving to a city in aus, I would say 2 (coming from London), 2.2 (South East) up to 2.5+. We moved from London to Melbourne and find it's almost exactly 2:1. But of course London isn't cheap either....

If your plan is to buy then I'd also think about where you rent. Even for Melbourne your rental budget is in a different league to your purchase budget. You may not want to rent and settle in an area you could never afford to buy in. Rental yields are low here so for the rent you're looking at you can live in a $1.5-2m house and in almost any suburb. For your purchase you're looking at less established suburbs and/or further out from the cbd. But either way Melbourne is a great place to live.

We've only been here 6 months but to be honest I don't recognise some of the descriptions here of Melbourne weather. Don't know if you acclimatise? It is not cold in the winter, it's very dry and you don't get endless grey days. When we left the uk in early April we'd just had 4 weeks of snow on the ground and grey skies, with temps less than 5 degrees. Here think uk spring temps in the winter. Agree houses here are drafty and decent heating helps. 14 degrees is not cold by uk winter standards but not comfortable if that's the temp in your house. Rare there's a day without any clear blue skies - cloudy days normally clear. If it rains it properly rains but doesn't drizzle for days on end like the uk. It is very changeable - not uncommon to change 10-20 degrees from one day to another. And to be honest, having just gone through our first 40 degree day, I'm glad it's due to drop 15 degrees in the next 2 days. Overall significantly warmer, with much more blue skies vs the uk, but windy and very changeable.

I think in some ways going over with a view to staying for a temporary period is healthy. It takes the pressure of thinking you have to make it work, encourages you to see the place a bit as you may not be here forever and makes taking the rough with the smooth easier. At least that's our experience so far. But the big question is cost - can you afford it if its only a couple of years?

My advice having moved over 3 months ago. Don't start/read threads like this. And don't spend ages investigating what you may encounter. No-ones going to tell you you'll never see a spider over here. Or that they they're never big. When you arrive you may find yourself doing what i imagine a lot of brits do when they first get here - checking clothes, shoes and bed sheets, not wandering into dark rooms with the light off, staying clear of garages and sheds, checking under the toilet seat, not wandering round the garden at night, over-reacting if you twitch in bed, etc etc. But you will adjust quite quickly and realise you're being a bit paranoid.

We recently moved to Melbourne and rented a house in the suburbs. All private viewings, we managed 9 viewings, 2 applications and acceptance in 5 days. Agent was keen to get us in ASAP. It was only because we wanted to stay in the city for an extra week that it took us longer to move in. Word from other landlords we know is that the Melbourne rental market is pretty flat. Would echo the comment re seeing places first. When we first came out there was one place we were SURE would be the one. After viewings it didn't even make the top five...

We're from the UK on a 457 in Melbourne with reciprocal Medicare cards and I am researching this at the moment. I've spoken at length to 3 of the major private insurers, Medicare and the tax office. This is what I've been able to find out: - I have to pay the Medicare levy surcharge as I am resident for tax purposes (and income is high enough to qualify) - I can't take out the regular private health care cover options available to Oz/permanent residents (I'd need a 'full', not a 'reciprocal', Medicare card) - I can take out special 'working visa' private cover which gives similar benefits to regular cover, with similar cover options from low to high, silver to platinum, etc but costs more. However these policies do NOT exempt me from paying the surcharge. - Two of the three private insurers can also sell me 'reciprocal' private cover on top which provides NO additional benefits at all - simply replaces the reciprocal cover I'm already eligible for for free with my Medicare card - but exempts me from paying the surcharge. Which basically amounts to 457 visa holders from a reciprocal country like the UK being a bit screwed. Plus it is very hard to get clear answers on all of this. Eg a private insurer was unable to tell me whether their working visa cover exempted me from the surcharge; I found it in the small print of the Ts & Cs of their policy. So for the top level of family cover with extras, plus the additional bogus cover to save paying the surcharge, it will cost approx $6-700 a month.

We planned to bring over our two cats. Both 12 so a tough decision. But in the end no other real options. Didn't want to put them back in a shelter. One of them is really nervous. Has been all her life. We're proud we've calmed her down a bit and given her a stable home. But she died 3 weeks ago in a cattery waiting to come out. Was actually through petair but they have been great from start to finish; absolutely no bad feeling from our side there. Its possible she just couldn't cope; heart attack or something equally sudden. But for all we know could have happened if we went nowhere. Other cat arrived in Oz last week, missus has been to see her and she's fine. Just waiting to get her home now. My advice: if they're old-ish and settled with someone you trust, think carefully before moving them.

Gone. Sign of things to come?

* cant help but subscribes as interested in the outcome *

Tried to ignore this but I can't. Seen a few threads like this on the forum and almost none are asking 'how can I manage this debt' but rather 'can I get away with it'. Lets keep this simple. You borrowed it, you spent it. So pay it back. If you're struggling there are various routes to follow. Walking away means any losses incurred by the CC company, including costs to chase you round the world, are met by existing, honest CC holders. Who pay their way in the world. I appreciate you may be in dire straits that I know nothing about. But nothing makes my blood boil more than people refusing to take responsibility for their own actions and expecting others to foot the bill.

In summary: Taxable amount of uk rent in both uk and Oz = rent - mortgage interest - agents fees - insurance - repairs - wear and tear on furnishings In the UK, rental income must be declared to HMRC (eg via self assessment) but unless you own an expensive house with little or no mortgage, and assuming no other uk income, taxable amount < uk personal tax allowance, so no uk tax to pay. Citizenship/Permanent residency visa in Oz = must declare all non-Oz income like uk rent on Oz tax return. Taxable amount will be added on to any other oz income like salary, minus any tax paid in uk, and taxed according to Oz income tax bands. So assuming you are earning a salary in Oz then you will pay Oz tax on the uk rental. Temp visa (eg 457) in Oz = no need to declare non-Oz income like uk rent on Oz tax return so no extra tax to pay in Oz. Doesn't matter what you earn in Oz. This is linked to your visa type and applies even if you are 'resident for tax purposes'. So temp visa holders likely pay no tax anywhere on the taxable amount, permanent residency visa holders will likely pay Oz tax on it.