Arrrgghh crunch time again!!

[Gbye grey sky]

WOW thanks for the replies...I know 180k sounds a lot but my partners a social worker and she couldn’t find a job before and is now at home with our new born so we are looking at just my wage for the foreseeable even after we dont see her getting a job from what we have heard all those type of jobs have been cut right back, also you pay a lot of tax on 180aud best part of 45% vs in the UK as id be self employed on a day rate Id pay about 20%.

 

My misses wants to stay longer and continue renting but thats really getting to me, we paid nearly 40,000 aud in rent last year for a house comparable to the one I sold in Scotland.

 

I know Im in an enviable position, I appreciate that and I'm fully aware that others might not be in the same wage bracket and I don’t want to sound like a knob, but 180k once the tax is off doesn’t go that far for a family of 4 with 2 cars etc, its certainly nothing like the financial setup I enjoyed in the UK.

 

But what’s the price on the sunny coast, surfers, Byron, sea world, Australia zoo or any of the islands we’ve visited or the rugby at the Sun corp…the list goes on..

 

Not sure how you calculated the UK tax rate rate 20% when you would be on the annual equivalent of £120k. At that rate you would almost lose your personal allowance and after the first £30k or so when you would be taxed and NIC of about 31% you would be on higher rate of 40% plus NIC of 11% so an effective rate of 51%. No child benefit either as earning over £60k.

[northshorepom]

Not sure how you calculated the UK tax rate rate 20% when you would be on the annual equivalent of £120k. At that rate you would almost lose your personal allowance and after the first £30k or so when you would be taxed and NIC of about 31% you would be on higher rate of 40% plus NIC of 11% so an effective rate of 51%. No child benefit either as earning over £60k.

 

Something odd with your figures???

 

On an exchange rate basis his income is about 95K GBP. On a purchasing power parity basis it's somewhere between 72K and 90K GBP, depending on who you believe

[Motorhead]

I'm not PAYE in the UK, I work for my own Ltd company paying myself and my wife in company dividends, hence tax works out at ~20-25%

 

Northshorepom's figures feel about right, Id say an income of 70k GBP = what I earn here

[Echidna66]

Mate I earn between 80 and 100k I rent have four cars one fur child and just bought some land to do a land and home build and I can easy afford this with savings in the bank of around 10k and pay 39% on EVERY $$ I earn as I never chaged the tax bracket what are you speading your money on? Something isn't right to me.

39% tax on 80 -100k per year..Something wrong there mate...I earned 125k last tax year and paid 26% tax in total...Would get an accountant if I was you..

[jasepom]

You must be mad to leave 180k job in Australia. Also there are plenty of fantastic places to live outside of Brisbane which are affordable. I think you just need to work out which area you can afford and the commute. Life is good here just relax and enjoy it.

 

Think of the families living on 70k a year ( or those without jobs ). I'd count your blessings if I was you mate.

[Ausborn]

Dunno how you can't afford private education on that money? I've never paid more than $1300 a term for my kids. That's $100 a week....................less than a meal out for two, in the city.

 

 

Im im still amazed. The best private schools in brisbane are easily doable for people on much less. Could easily afford a nice mortgage on a house on the river as well. I know of plenty that do it on much less. I wouldn't even be worried about the wife not working on that money. I earn 40 000 less and can pretty much do won't I want in brisbane. Sydney or Perth I could understand the comments abit better .

[starlight7]

Now if it was the good private schools down here in Melbourne- different story. looking at $27,000 p.a for our local one.

[rammygirl]

I'm not PAYE in the UK, I work for my own Ltd company paying myself and my wife in company dividends, hence tax works out at ~20-25%

 

Northshorepom's figures feel about right, Id say an income of 70k GBP = what I earn here

 

well, comparing apples and pears then.

 

if you were PAYE in UK it would be more, could you not consider setting up as a company in Oz for similar tax breaks?

 

We are the same, on less here and higher tax but it is a RSMS visa so we are dealing with it. Still have some Divvies to take from the UK company so that helps.

 

Earning that amount between two people is more tax effective generally so a joint income will leave you more, I think some people maybe forget that when they respond. It is still a very good wage though

[Ausborn]

Now if it was the good private schools down here in Melbourne- different story. looking at $27,000 p.a for our local one.

That is around the same as up here for the top one. Think all hollows is around $20 000 .id say brisbane grammar is the expensive one. That's includes so much though.They seem to be travelling around the country side with the sporting teams and things like rowing Ect. My niece is at a private school in the suburbs that has a good name for itself. $3000 a year .

[starlight7]

I think these expensive schools are way, way overpriced but I guess whilst people are willing to pay they will continue on their merry way.

[northshorepom]

well, comparing apples and pears then.

Not really. OP was talking gross figures from what I can see

 

A$180K does not equal 120K GBP however you want to work it

 

Set tax aside. A$180K gross equates to somewhere around $70-$95K GBP gross, as I said

 

Now it appears OP has the opportunity to work more tax efficiently, AND for more money gross in the UK. 500 quid a day, equals 110K GBP or so, given normal allowances for time off/holidays or whatever

 

They are obviously, hands down, in that situation, much better off in the UK. I don't see how it can be taken otherwise

 

So the question for the OP is, given they are worse off here, is the change worth it (other than financially) for them? Only they can answer that........what other people think is "good money" or not isn't really in the equation

[Xenon4017]

Not really. OP was talking gross figures from what I can see

 

A$180K does not equal 120K GBP however you want to work it

 

Set tax aside. A$180K gross equates to somewhere around $70-$95K GBP gross, as I said

 

Now it appears OP has the opportunity to work more tax efficiently, AND for more money gross in the UK. 500 quid a day, equals 110K GBP or so, given normal allowances for time off/holidays or whatever

 

They are obviously, hands down, in that situation, much better off in the UK. I don't see how it can be taken otherwise

 

So the question for the OP is, given they are worse off here, is the change worth it (other than financially) for them? Only they can answer that........what other people think is "good money" or not isn't really in the equation

 

 

At the current exchange rate (1.85) it would work out to GBP100k.

 

And 500 GBP per day will only get you 110k if you are working pretty much with no voids due to contracts not butting up and no training costs etc. Which implies that OP would be contracted to one organisation. Therefore the relationship would be more like employer/employee, which attracts extra scrutiny from the UK taxman, just as it would here.

 

I think the thread has taken a bit of a tangent due to the OPs' assertion that 180k isn't enough to live on, at least in the lifestyle that he would wish.

[northshorepom]

At the current exchange rate (1.85) it would work out to GBP100k.

No it wouldn't. It would be a touch over 97K GBP. As I said "about 95K", if you're being pedantic

 

And 500 GBP per day will only get you 110k if you are working pretty much with no voids due to contracts not butting up and no training costs etc.

No it wouldn't. I allowed plenty of slack time. 500 GBP per day means 110K GBP pa if you work 44 weeks, ie 8 weeks of not working.

 

Please, get your figures at least reaonsably straight. People here appear to be arguing that the OP is comparing apples with pears when he really isn't

 

As I said earlier, it's s shame if this thread descends into people thinking the OP is well off, so what's he complaining about? Sadly it seems to have ended up in just that.....

 

I think the thread has taken a bit of a tangent due to the OPs' assertion that 180k isn't enough to live on, at least in the lifestyle that he would wish.

Precisely. But I don't think it's relevant

[rammygirl]

When I said apples and pears I mean he was comparing his earnings under two different tax treatments, PAYE and company tax.

Both countries have this, if he were being taxed as a company in Oz he would be better off, if he had been taxed PAYE in UK he would have been worse off.

 

just saying, maybe he can change the way he works here and set up a company.

 

also if he was earning that in UK and only taking min wage plus dividends out of a company to keep low tax, he must have built up reserves in the company - otherwise if he was taking it all out the tax bill would have been bigger.

 

We we did the same in the UK and have reserves built up that we can now access to help with the lower earnings now for a while.

[Xenon4017]

No it wouldn't. It would be a touch over 97K GBP. As I said "about 95K", if you're being pedantic

 

 

No it wouldn't. I allowed plenty of slack time. 500 GBP per day means 110K GBP pa if you work 44 weeks, ie 8 weeks of not working.

 

Please, get your figures at least reaonsably straight. People here appear to be arguing that the OP is comparing apples with pears when he really isn't

 

As I said earlier, it's s shame if this thread descends into people thinking the OP is well off, so what's he complaining about? Sadly it seems to have ended up in just that.....

 

 

Precisely. But I don't think it's relevant

 

Well, you quoted 70-95, whereas the true figure lies a bit north of that, temporal fluctuations notwithstanding.

 

8 non-billed weeks per year is a bit optimistic, again, depending on what field you're in. You'd have to assume 4 weeks annual leave, plus 11 days bank holidays. That leaves just under 2 weeks per year of "vacant time", which isn't much if were talking about a legitimate contracting business. I also assume from the OPs' complaint about tax that he's currently employed, with commensurate benefits regarding sick pay and so forth.

 

It's true that when people see a figure of 500GBP per day, they tend to compare it to their waged daily amount and get a bit miffed. But I still say the OP is not making an even comparison.

[northshorepom]

When I said apples and pears I mean he was comparing his earnings under two different tax treatments, PAYE and company tax.

Both countries have this, if he were being taxed as a company in Oz he would be better off, if he had been taxed PAYE in UK he would have been worse off.

The point is, he isn't comparing apples with pears as he made no comment on after tax earnings. Regardless of tax treatment, he would be better off in the UK, whichever way you slice it.

 

Well, you quoted 70-95, whereas the true figure lies a bit north of that, temporal fluctuations notwithstanding.

At the risk of flogging a dead horse, in my first post on the matter I said on an XR basis his A$ salary was worth IRO 95K GBP, on a PPP basis it was somewhere between 72K and 90K. Hence the broader range made in the later post

 

Again, either way, he is clearly better off financially in the UK

 

 

 

Now, at the risk of speaking for the OP, can we move on from the money issue? I suspected the thread would disappear down that particular rabbit hole since again, whichever way you slice it, A$180K is well above average earnings so for the majority who have less, it's hard to comprehend how anyone could have a problem with it. But I don't think money (beyond the relative comparisons with whether the OP would be better off in one country or the other, which are inevitable) is really the issue; go back to the OP's OP, and delete any figures, what would you say?

[Gbye grey sky]

Something odd with your figures???

 

On an exchange rate basis his income is about 95K GBP. On a purchasing power parity basis it's somewhere between 72K and 90K GBP, depending on who you believe

 

Based my figures on £500 per day or £2500 per week which was the UK earnings offered.

[Gbye grey sky]

I'm not PAYE in the UK, I work for my own Ltd company paying myself and my wife in company dividends, hence tax works out at ~20-25%

 

Northshorepom's figures feel about right, Id say an income of 70k GBP = what I earn here

 

Ok but aren't you forgetting Corporation Tax?

[Londongal76]

Yes. You're forgetting NI, Corporation tax (hello £15-20k a year) and the tax you pay on dividends out of your personal allowance. Don't think for a second you're taking home £2500 a week minus 20%.

 

Also giving dividends to your wife isn't as easy anymore as HMRC are very wise to it now as a tax avoidance loophole, all of which they're cracking down on heavily here at the moment. You have to prove she takes an active role in the companys affairs and you're highly likely to be up on an audit list transferring dividends to her now. All those people registered with tax avoidance schemes from the last 6 years are now getting massive bills, and all the small fry using these avoidance loopholes in their ltd companies are getting heavily audited.

 

Your decision needs to be based on whether you like being in Australia, or want to go back to the UK. Not based on job offerings that in all reality seem very level pegged financially.

 

You can use it as a reason to go back, but you need to both want to go back for the right reasons.

[jasepom]

We couldnt afford provate education for the boys here we could in the UK.

 

You do realise its been proven that private education is not value for money and does not generally give better results that the public system it is simply a way for parents to compete with each other and for snob value. At the end of the day the child will get the results they deserve if they work hard regardless if what school they go to. The Australian public schools are in my opinion superior to uk schools,

[Guest]

You do realise its been proven that private education is not value for money and does not generally give better results that the public system it is simply a way for parents to compete with each other and for snob value. At the end of the day the child will get the results they deserve if they work hard regardless if what school they go to. The Australian public schools are in my opinion superior to uk schools,

 

My son is in a private school in the UK - the local state high school gets 'better' results but since when is a 'good' education about 'better results' - unfortunately successive governments have made it that way so that's why we have opted for a private school where our son can get what WE consider a good education rather than what the government consider a good education. Completing with other parents and snob value is about as far from the truth as it could get - in fact I rarely volunteer the information and as a socialist from good working class stock I am hugely embarrassed to admit it - but I won't let my principles stand in the way of what is right for my son and after spending his first 5 years in what I agree is a superior system in Australia I could not disadvantage him when we decided to move back to the UK.

 

As an ex-teacher and chief examiner I am sorry to say there is a huge difference between schools and the outcomes they get - I marked GCSE papers from all over England (& worldwide) and the difference between schools is far greater than the difference between pupils within a school. School isn't the only factor but like planting seeds in arid soil even the most resilient won't reach their potential.

 

Of course bear in mind 'good' results often comes from selective intake - our local high school selects out of area students to boost their results whereas my sons private school is completely non-selective - so much so they refused copies of his school reports and NAPLAN results as they prefer not to have any pre-conceived ideas about a child (which proved to me we were making the right choice!)

 

Sorry I know this is very off-topic but I don't even know how you can put a monetary value on your child's happiness to judge whether private education is 'value for money' so I felt the need to respond.

[Gbye grey sky]

You do realise its been proven that private education is not value for money and does not generally give better results that the public system it is simply a way for parents to compete with each other and for snob value. At the end of the day the child will get the results they deserve if they work hard regardless if what school they go to. The Australian public schools are in my opinion superior to uk schools,

 

Off topic I know but there is a gaping contradiction here. You say that the school a child goes to makes no difference to their level of attainment which is ridiculous even comparing different state schools. Then you say Oz schools are superior to those in the UK; how can this be the same if the school makes no difference.

[Londongal76]

I thought private education was cheaper there than here anyway, by a big margin.

[starlight7]

Depends which school- there are more here and they vary a lot. I think they are worth it because the state high school level education isn't that good in many areas. They never seem to sack the poor teachers but the private schools do.

[Guest]

We paid about $4k a year in Australia and £10k a year here - however in the UK one there is financial assistance available for families earning less than £35k - it has an open-door policy and no child will be refused based on their parents ability to pay.