Salary negotiations - moving to Sydney, got approved for a transfer through work

[Leedargh]

hi guys,

I am Aussie, having lived in London for 15 years. My family and I are moving back in January and my work have agreed to transfer my job to Sydney (so thankful).

My boss would like to me to figure out what kind of salary I would get there, as they dont want to do a straight conversion, but take into account the loss of various benefits here + the cost of living in Sydney. A lot to think about!
Currently my salary is £63k. It includes 25 days annual leave and medical and insurance benefits. I work as a UAT analyst for an investment manager in London.

The Australia firm will only give 20 days annual leave plus I wont get the medical and insurance benefits.

So taking the salary conversion plus the 5 days of annual leave I will loose I estimate my salary to be $110k.

How do I account for cost of living in Sydney? I am at a bit of a loss. 

 

[Melb2016]

GBP63k > AUD110k.

 

Some companies use a conversion factor rate rather than a straight currency exchange rate. This accounts for cost of living differences. Obviously you are getting hammered due to a weak GBP. I would argue that coming from London, Sydney wouldnt be too different as regards cost of living.

 

But, to reach standard of living parity based on your UK wage, I would be looking at closer to AUD 125-130k + medical cover (although having said that, Medicare is pretty much free and very good).

 

A note about annual leave, yes you would get less leave in Au but pls check how the bank holidays stack up too. I have a feeling that you will be able to recuperate a couple of days as Au has more bank holidays thank the UK.

 

[Melb2016]

Also, check whether you get some relocation support.

[Leedargh]

thanks for responding! Alas no i dont get relocation support as I approached the firm about moving to Austraia and they are pretty much doing me a favour by hiring me in Australia. But amazing I will see about asking for 2x my Uk salary. Though when searching for similar roles in Sydney on Seek etc, the salary amount does not seem as high as that. Seems to be about $100k.

[evets]

63k London verses $110k Sydney.  Not the best of deals especially if they are not going to provide any medical or insurance.

Does the salary exclude your super ann(pension) which they will pay on top?

Australia kinda pushes you into taking private healthcare, as you have a tax levy if you do not have it. In addition, if you are over 30 and do not have it, if and when you may decide to purchase it, again penalised by the healthcare companies. Not sure who your current provider is in the UK, as if you transfer with them, if they have an Australian outfit, they honour your years of service, so no starting afresh.

After living in London, and Melbourne. 63k for London is very good, $110k for Sydney not so good.

Since you already are Australian, and they are paying no relocation costs, except possibly the flights and maybe some good will a hotel for a few weeks. you also have to consider the actual cost of shipping your goods over.

The only real positive I can read from this, is you have a job to come to at your own expense. It really all boils down too are you wanting to move back? If so, you probably would have to incur those costs yourself and have no job to walk into.

[markb28]

I'd have to say as a Londoner myself - you won't get a spectacular lifestyle on $110 AUD compared to 63k GBP as a single guy.  I'd agree that the 130k would be closer to parity.

Sydney is bloody expensive and you'll find that rent if you live somewhere nice on your own is going to take a big chunk out of your salary (same as London).  Food/drinks more expensive as are groceries.

And if you're negotiating don't be swayed into a performance related deal as there are multiple factors that can mean your take home annually is even lower.

 

 

 

[markb28]

I'd ask for $140k inclusive (that includes super), more if you get it.

[rammygirl]

2.2 to 2.5 x your UK salary in dollars would allow for the cost of living.  Depending where you are now in the UK. London salary maybe 2.2 times.  Plus super.

 

Even in SA we worked out to buy the same things as we did in Lancashire town it was 2.2.  Exchange rate is misleading it didn’t suddenly cost less to live here in dollars when the exchange rate changed from 2.5 to the pound to 1.6 to the pound!

 

Sydney property prices have risen a lot recently too and that will be your main cost.  Beware people who have lived there for many years saying they manage just fine on $100k with a family of 4.  They probably bought property when it was much cheaper and have a small mortgage or even no mortgage.

 

There are industry lists which give salary levels.  Most jobs on seek do not give salary.  Can’t remember what they are called but google salary levels and you will find them.

Found them Hudson’s is one and Hays is the other.

if you have to agree to less then ask for a pay review in writing after 6 or 12 months.

Edited November 11, 2017 by rammygirl

[Quoll]

5 hours ago, markb28 said:

I'd ask for $140k inclusive (that includes super), more if you get it.

That’s what I was thinking. Your current salary is roughly twice the UK national average so, on the same rationale, you’d be after $140k and, even then, you’d be a bit under.

[Leedargh]

thanks all.. I have asked for 2.2 x my UK salary and we will see what happens.

From looking at various salary guides, £120k seems to be the upper end of what they are paying for my line of work but my company does pay well so fingers crossed.