Progressive

Having watched the rate, and its trends, over the past two years I feel that that momentum will continue against you for a while yet. As a general statement, I feel that the 1.65 days are long gone now. There was a resources boom and weaker global economies which supported the Australian dollar. I can’t see those conditions being replicated for some time. I was in a similar position to you and kept holding with blind faith that it would improve. I learned that hard way and lost quite a bit in the process. I ‘cashed my chips’ fairly recently, despite the ‘poor rate’ after making a call based on the information available. The rate has continued to fall at the same rate since then. In answer to your question, I see the dollar reaching 2.20 imminently and potentially 2.50 within the next year. Absolute pessimistic forecast in the next two years would probably be 2.85 for me, based on historical averages and current economic conditions. As I have mentioned before, it is about your risk profile I suppose. I needed the money in UK at some point soon for an important reason, and losing a few more thousand now would likely hurt more than gaining a few thousand. It is catch 22 for most people however, as coming the other way you get more dollars for your pounds, granted, but you are also entering a floundering economy which is on the brink. Unless you are working is Oz and paying commitments in UK of course, then you have the worst of both! “Cut your losses and let your winners run” – Warren Buffet.

It's all about risk profile. Stake the $200,000 if you can afford it; you may get lucky, you may not. You should do your own research but things are certainly stacked against the dollar at the moment, and I would suggest for at least the next couple of years. I see it going lower before it increases. 0.45 by year end I think, though have heard people discussing 0.40. Supposing you leave it for a while and it goes to the dizzy heights of 0.50 (from the current 0.47). You will be around GBP6,000 better off. If it continues its decrease you might be a further $80,000 worse off. Cut the emotional tie and make the best decision with the information you have. If its the money for a roof over your head in UK I wouldn't risk it personally. On the flip side, you are returning to a thriving economy with good job prospects and leaving a nation on the brink of recession...

As an addition and probably mainly related to Perth, I spent the first year in Perth without a car. As such I was mainly in the metropolitan area or places on the train lines. Suburbs with bars, restaurants, boutique shops etc. The first time I went into a proper residential suburb was about a year in, and my reaction was “if this is where I had initially landed, I’d have been away by now”. Walking into the highlight of many of the Perth suburbs, a Westfield (or similar) shopping centre, is such a grim experience in my opinion. They all look and even smell the same. With the same old fashioned shops and food courts. It’s like going back to the 80’s in many cases. I feel almost a pity for people having to be there in all honesty. And ironically, I’m not a fan on ultra-modern shopping centres by any means. These places just give me a negative feeling. Not an attack on Perth, WA or Australia generally as I have a lot of time for the place. A great lifestyle can be had here. I’m one of many that have really enjoyed it. The point I’m trying to make is I just feel like ‘tourist Australia’ and ‘living in Australia’ is dramatically different, and at times it can be pretty bleak. Same as many other places in that respect though, no doubt.

Just to chime in with my experience: I moved out to around Australia four years ago. I had a job secured before travelling, which I was happy to accept. The intention was always to come here for a new challenge, and we fully anticipated to end up back in UK within a couple of years. Obviously we are beyond that target now. We have had it relatively easy the whole time to be honest; found a nice rental and still there, missus got work no problem, joint income is very healthy, active social life. My experience here has probably been better than I expected it to be. We intend to move back to UK at some point in the coming year, mainly for the following reasons: - The distance from our ‘real friends’ and family now outweighs the benefits of being so far away, for us. When everything is new and exciting I feel it is easier to deal with this. I now kind of begrudge missing birthdays and weddings etc. when I didn’t before. - I miss (and always have missed) the history and culture of Europe. I have done loads of great things in Australia and love the landscape and expansiveness but it’s just ‘too far out of the way’. - Work simply isn’t challenging enough. I have been on easy street for four years. Great when you are enjoying an busy lifestyle outside of work but now I am ‘going through the motions’ it can be mind-numbing at times. Many of my peers feel the same. I must say though, I came here for employment, and as an aside really fell in love with the place. I had no real desire to move to Australia before I got the job offer. I wouldn’t have come without a job, or unless I thought I could secure one quickly. Money was also an objective and despite the plummeting rate and high cost of living we have done pretty well. I have never felt ‘at home’ here and as time goes on I actually feel less connected to the place. I have had a few negative experiences (nothing major I may add) that have made me feel an outsider and confirmed that I will never be able to call this place home. Australia has been great to us, and I would recommend it, depending on circumstances. In good employment with a good income it is a lot easier. Not to say you can’t do it on a budget, many do. Though being on the other side of the world, miles from family, in a potentially soulless new build suburb without much of a financial incentive to make it worthwhile… I’m not sure. Some people I see (and know) are really struggling to get by. The stories of people saying “I’d love to go back but can’t afford it” must be a nightmare situation to be in. In conclusion, I prefer the lifestyle in Oz to what I had in UK. I couldn’t think of many better places to be in terms of daily life. But there is a few important (to me) things missing which I could tolerate for a while but not for ever.

To provide a real world example: A co-worker of mine's son recently returned to UK alone for university. They have lived outside of UK for about six years. As you mentioned earlier, some unis expected international fees, others didn't. In the end I believe they paid domestic fees and got onto a course of choice at a top uni. From what he was saying, it was a mix of his peers in a similar situation of who got hit with what fees. I imagine that the financial difference is going to be quite huge, so unless money is no object I would probably tailor the university and course based on the fees payable. Namely, the same course at a better uni may not be worth three (?) times the cost. Good luck.

I am in Perth and have been for a few years. The 'downturn' is well underway, though I think the worst is still to be seen. Many of the smaller mining companies that make up a good portion of the industry are on the brink at the moment. When mining takes a knock, everything else does too. Unemployment rate is growing monthly. You seem a little bit 'disconnected' from what is happening here; it is difficult being so far away but all of the information is there to review. WA news online, the plummeting iron ore price, the Australian dollar which is tanking, how few jobs appear on jobs pages now etc. It isn't the best time to make the move but if you are driven to make it work I'm sure it will. I came with a 'what happens happens' approach and if things get tough (I lose my job and can't find another) I have no issues about leaving. By contrast, I know people (and families) that have thrown everything at a one-way move over the past couple of years and are really struggling now. I am glad I'm not in this position, as it really is testing to say the least. If you fit into this second group I would highly recommend having at least one job secured before moving out. Unsure of how likely that is at the moment. Do your research and understand that you may not fall on your feet. Be realistic about it. Either way, its an adventure and you will probably kick yourself forever if you don't give it a shot.

Departing Australia superannuation payment (DASP) [TABLE=width: 100%] [TR] [TH=bgcolor: #F5F5F5]DASP[/TH] [TH=bgcolor: #F5F5F5]Component of DASP[/TH] [TH=bgcolor: #F5F5F5]Element of DASP[/TH] [TH=bgcolor: #F5F5F5]DASP tax rate[/TH] [TH=bgcolor: #F5F5F5]Can DASP be included in tax return?[/TH] [/TR] [TR] [TD]Note: Roll-over of DASP is only an option where the ATO are holding the money as temporary resident unclaimed super money and the person has subsequently returned to Australia as a permanent resident.[/TD] [TD]Tax free[/TD] [TD]N/A[/TD] [TD]Nil[/TD] [TD]No[/TD] [/TR] [TR] [TD][/TD] [TD]Taxable[/TD] [TD]Taxed element[/TD] [TD]38% DASP tax Note: this includes the Temporary Budget Repair Levy of 2%. Applies to taxed elements whether taken as DASP lump sum or roll-over.[/TD] [TD]No[/TD] [/TR] [TR] [TD][/TD] [TD][/TD] [TD]Untaxed element[/TD] [TD]47% DASP tax Note: this includes the Temporary Budget Repair Levy of 2%. Applies to untaxed elements taken as DASP lump sums. Also to roll-over amounts up to the untaxed roll-over plan cap amount. Any part of a roll-over that exceeds the untaxed roll-over plan cap amount is subject to tax under theSuperannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007(currently 49%) rather than at DASP tax rates.[/TD] [TD]No[/TD] [/TR] [/TABLE] Source: https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?page=12#Departing_Australia_superannuation_payment__DASP_

“Losing almost a full cent during today’s trading, without any poor data or political events in the UK or Australia to explain it, it seems that the recent highs Australian Dollar buyers were enjoying were purely artificial. The amount of capital flying into the Pound to escape the uncertainty surrounding the Eurozone at the moment is staggering. Sterling has increased in value against all major currencies as a result. However, when such movements are not due to positive economic improvements or due to the opposite in Australia, these can never be sustainable. Essentially these rates are a short-term reflection of market psychology, rather than showing us cold hard facts about the strengths of the relative economies. Today we have already seen a more consiliatory Greek delegation – offering new terms to bring back some much-needed liquidity to the Greek economy. As such some of the less nervous investors are already returning to Europe, embarassed with their overreaction. This has deflated the value of Sterling across the board today, which is why 2.03 (0.49) is visable on the markets once again. As we get closer to a resolution, I fully expect the rates to continue in this direction.” Good luck all, whichever way your money is heading...

Oh, and to add - It seems like you are getting quite a bit of guidance from people already on the ground here. That is fantastic and helped so much in my situation. The numbers mean very little on paper when reviewing them. So that's a good place to be. With that said, make sure you do your own research. I know people that have been burned by 'mates' telling them how good / easy / buoyant this are here, when the reality has been slightly different. If you are not chasing money and are prepared to compromise, come with an open mind and I'm sure you will have an amazing time.

To echo Colinmaclec’s comments, an expectation of that salary is unrealistic (in my opinion) these days. For context, I have a close friend who works in that line who expected similar and the best they could find was approximately $85k in the metropolitan area, made up to around $100k by working evenings and weekends wherever possible. Despite being reluctant, they took on a FIFO role for slightly more ($110k) but which offered a fairly good roster (three weeks on, one week off). That contract is now coming to an end, and they mentioned approximately a 30% pay cut across the board now they are looking for work again. As an aside, this person had around ten years good European experience, with relevant qualifications. That appeared to amount to very little upon arrival, despite a positive skills assessment. So training and qualifications had to be re-done, and in that time they couldn’t ‘work properly’. Good luck and I hope it all works out for you. To echo Colinmaclec’s comments, an expectation of that salary is unrealistic (in my opinion) these days. For context, I have a close friend who works in that line who expected similar and the best they could find was approximately $85k in the metropolitan area, made up to around $100k by working evenings and weekends wherever possible. Despite being reluctant, they took on a FIFO role for slightly more ($110k) but which offered a fairly good roster (three weeks on, one week off). That contract is now coming to an end, and they mentioned approximately a 30% pay cut across the board now they are looking for work again. As an aside, this person had around ten years good European experience, with relevant qualifications. That appeared to amount to very little upon arrival, despite a positive skills assessment. So training and qualifications had to be re-done, and in that time they couldn’t ‘work properly’. Good luck and I hope it all works out for you.

Not a direct answer but this may help... Just to check, I assume you are a PR or Citizen? Temporary Residents can access their super upon visa cancellation. I actually opted out of moving from 457 visa to PR due to the 'locking in' of four years of super payments and it being simply 'eaten away by fees' as you say. So would be interesting to here people's views on that. If I intended to stay long-term this might have been different, but Australia was always a round trip for me.

In answer to the super question, I had previously been advised (mainly from internet research and forums admittedly) that paying into a super fund for three years (lets say accumulating $25,000) abnd then leaving it until retirement with no further payments will make it worthless come withdrawl. For reference, I am under 30 so the fees on the fund for the next 30 years will eat up most if not all of that. My original intention was to leave my super alone upon leaving, regardless of getting PR or otherwise, as I thought it a good investment for retirement. I quickly realised that this isn't the case. unless somebody can correct me.

Many thanks everyone for your detailed responses. They are all very helpful. Admittedly, I think our minds are made up but I just wanted to run the plans by some like-minded people who may have been in the same situation. We have certainly got what we were looking for (and much more) from our time here in Australia. The financial commitment would absolutely be worth it if we saw a long-term (or even medium-term) future here, but at the moment we do not. We will leave at peace with the country and its people, and I would thoroughly recommend people doing what we have done, providing the circumstances are right. Perhaps once we go, we will open up a couple of spaces for other fortunate migrants! Thanks again all.

Further to my other recent post, I am looking to move back to UK (or elsewhere in Europe depending on job opportunities) in March 2015, after almost three years in Australia on a 457 visa. This is relatively flexible and we are in no immediate rush to leave. We have had a fantastic time in Australia but came for a temporary work assignment for two years and it is almost time to move on. There are a few reasons for this but the main reason is there a number of other places we would like to live and work, and we don’t have a burning desire to stay in Australia at present. My job market is quietening down and wages elsewhere are increasing so that makes the decision slightly easier too. We would also like to start a family soon and our preference would be to do so around other family members, and from some quick research the cost of childcare, schooling and healthcare in Australia seems against us. Although I do appreciate that many people get on just fine. My employer has offered on multiple occasions to sponsor our PR application, up until now we have not been particularly interested. As we approach the three year mark, part of me says stick around for another year (which wouldn’t be difficult as we thoroughly enjoy life here) and get PR and ultimately citizenship upon being here four years. All sounds good right? Something that is putting me off is the following: I would likely leave Australia (temporarily or permanently) upon being granted citizenship and would be liable (and happy) to pay my employer the application cost and migration agent costs. Colleagues have been through the process and it comes out at around $10,000 for a couple. My super would then be ‘locked in’ until retirement. Upon withdrawing as temporary residents, once we have been here three years (or more), even with the taxation (35%) we would have a nice chunk of freed up money to either put towards a house deposit in UK or invest into an equivalent pension scheme. Once PR is granted, this is ‘locked in’ and I doubt by the time we reach retirement (assuming I don’t pay any more in to the fund) it won’t be worth much. A rough calculation suggests that after withdrawing at three years payments and paying the above tax, this would be worth around $20,000. So whilst keeping our options open would be great, being granted citizenship would effectively ‘cost us’ around $30,000 if my logic is correct. Considering that we do not have a burning desire to return to Australia, although I could think of much worse places to live, this seems financially not very sensible. Is my logic sound or am I missing something fundamental? Any personal experiences or points that helped your decision making either way would be appreciated.

Hello all, I am looking for some high level general advice to establish whether I need to look into this more closely or not. Practical examples or experiences would be most helpful. I moved to Australia in May 2012 on a 457 visa and have been in continuous employment since. I have completed Australian tax returns for years ending 2012, 2013 and 2014. I will remain on the 457 and do not plan to get PR (or another visa) at this time. I plan to move back to UK in March 2015. I have no property, assets or earnings in UK aside from interest earned from a savings account. I am unsure as to whether I am a ‘resident for tax purposes’ in UK. The test on the HMRC website was quite confusing. I have been away less than three years but have no significant financial ties. I have spent approximately 21 days in UK per year since I left (pleasure not business). Supposing I move back as planned, will I be liable for UK tax on my earnings (for this UK tax year or maybe even all of my earnings)? I have established that my savings accrued in Australia which I transfer back will not be liable. I would be willing to wait it out until the UK tax year elapses in April 2015 if this would make a difference. Thanks, A confused and slightly worried pom.

It was actually my intention to leave my super alone until retirement, even if I left after my 457 ran out. My logic being that it would be a good reserve for a later date, on top of my savings. If that is the main disadvantage, perhaps PR is the optimum way to proceed. Can anyone confirm if you pay Australian tax on assets in UK (or elsewhere), renting a house of for example, once you have PR, even if you are living outside of Australia? Am I right in thinking that if one was to cancel their 457 and never return to Australia, they could still draw their super upon retirement?

I have been on a 457 visa for two years. I have worked for the same Employer, in the same occupation for the duration. My Employer has suggested that I apply for PR through the 186 pathway (transition from 457 visa). They will cover all costs, and I will be tied in to them for a further two years. This I am comfortable with, and as far as I am aware, on a 186 visa the obligation to remain with the Employer is moral, not legal ie. if I was to leave, my 186 visa wouldn’t be cancelled. My personal situation is that I wish to leave Australia sometime in the next couple of years to spend time elsewhere in the world (for a year or two), prior to settling in Australia at a later date. For this, PR (or citizenship if I see out the full four years is optimum). Are there any disadvantages associated with Permanent Residence (in consideration of my plans) which I should consider before going down this route? I am aware that I should spend two of the five years after PR grant in Australia. Thanks, P.

Hi all, I am looking for some general guidance to my current situation. Personal experiences or opinions would be warmly welcomed. A bit about me: I am approaching two brilliant years in Australia on a 457 visa. My employer has agreed to put me through gaining Permanent Residency; I believe this will be through the employer-nominated ‘transition’ route. At this point, the subclass of the proposed visa has not been discussed. I would be tied to my employer for the visa costs for two years, and if I was to leave my current employer I would pay these visa costs back. No problems with this. I would like to ultimately settle here in Australia but I have a few other commitments both professionally and personally which I would like to see through first. These include spending some time back in my home country with family before settling here and working in Europe for a short period to assist my professional development. So my question is; if I gained PR tomorrow, what restrictions would I have upon me? I hear differing things but ‘you must spend two of the first five years in Australia’ is the common one. I have also been told that gaining PR then leaving Australia for a prolonged period is frowned upon. Do I have an obligation (other than the financial one I mentioned) to stay with my employer? Will I have constraints on me for the whole time I am on a PR visa or do these disappear after the initial five years? In summary, I would like to secure PR but it is not my intention to be here constantly for the next five years. Has anybody had any practical experience with this, or has a good understand of the logistics? Many thanks.