Jump to content

You're currently viewing the forum as a Guest
register-now-button_orig.png
and join in with discussions   
ask migration questions
message other members


..and much much more!

Guest DesperateHomer

Living – Bills, Tax & cost of living

    Recommended Posts

    Guest DesperateHomer

    We’re serious about emigrating to OZ and so I guess it’s sensible to ask the following of anyone who has had experience of recently moving over

     

    Financially speaking, are you better off, worse off or about the same. (If either of the first two can you estimate to what degree)

     

    I hasten to add that we’re not motivated by having extra bundles in the pocket but we do need to get an idea of the financial consequences.

     

    Are there any bills/taxes/etc that we should be warned about?

    Share this post


    Link to post
    Share on other sites
    Moneycorp

    Moneycorp

    Hi Desperate Homer

    I have been offered a position as of Monday morning so seriously number crunching and delving into finances. From the numbers that I am coming up with I beleive I will be accepting the offer of sponsorship and travelling out as a young family with my wife and 2 children 8 and 3 on a 457 visa. Our joint income in the UK is approx 55k prior to tax and to be honest childcare is crippling us, so much so my wife is considering giving up her job. I beleive that if we move out to Queensland we will be in a very similar situation financially. We will have to rent out our property in the Uk as we bought before the crash and unfortunately will not profit on the rent we charge as anything we make over and above the mortgage fee we will bank for emergency repairs etc, so my calcs include Property Insurance in the UK also. I have been offered employment in Australia around the 85K mark and calculations are based on my wife staying at home with our youngest. I am not sure on visa type you will be travelling on and where you will be travelling from & to (assuming from UK) as this will seriously affect your numbers. For example certain states charge school fees on a 457 visa where as some do not, also worth noting is that the UK and some other european cities have a reciprocal agreement relating to Health Care however I beleive that you may need some sort of cover over there. Its also worth noting that when you rent you do not need to pay certain council rates as this is the leasers responsility except for a possible water usage fee dependent on where you will be settling. You will of course have to pay electricity, gas, phone charges and there may be hidden costs such as connection charges for these services. Its worth noting that part of my package includes a company car, phone and 6 months accommodation paid. You may want to check out income tax on the Australian tax office web site, I will be asking my potential employers advice on this as I have been slighlty puzzled with regards to the whole resident and foreign resident section (only due to reading various info on the 457 visa and residential status). You may even have that answer for me as there seems to be crca 5k of a difference in take home which to be honest is my deciding factor. Please see my monthly breakdown below that may assist and note that the numbers stated are based on my family and my findings within Queensland, they may vary slighlty depending on lifestyles and areas however I do not beleive that they are a million miles away:

     

    Rent 2400

    council rates 140 not applicable if renting

    water 110 may be less if renting

    gas 60

    electricity 140

    telephone 100

    shopping 1000

    contents insurance 40 for rented property and buildings insurance 70 if purchasing

    cable tv/internet 130

    clothing 300

    school expense 150 (lunch, snacks and excursions)

    life insurance 50 (UK policy)

    Health Care 200

    Entertainment/sports recreation 400

    Car Insurance 40

    Road Tax 45s

    Servicing 45

    Petrol/Diesel unknown

     

    I hope this helps and appologise for the spelling/grammar as im in a hurry but wanted to lend my opinion, should you have any info that could assist me then I would love to hear back from you.

     

    The Bilsland Family

    Share this post


    Link to post
    Share on other sites

    Very informative but sorry to say so the post from DesperateHomer is from 2007. I am not sure he/she is still reading the forum.:wubclub:

    Share this post


    Link to post
    Share on other sites

    Closing this thread as it's very old and there are more recent threads on cost of living.

     

    @Bilslandfamily, on a 457, you will generally be treated as a resident for tax purposes. (There are exceptions, but if you're properly moving over here, they won't apply to you)

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now


    • Similar Content

      • By desreb
        Hi again,
        My wife and I moved to Oz from UK in 2011, were AU residents 2011-16, and citizens 2015-16. We're now back in the UK, and belatedly filing our 2015-16 AU Tax Return.
        Since we were renting out our UK house, around half-way through our AU residence, we paid off enough of the mortgage that we started receiving a moderate net income from the house that was still well within the personal allowance. All the time we were in AU, we were declaring the net income on our AU tax return, and paying tax on it.
        So - I was doing the 2016 return, and I had forgotten how we had declared the house the previous year. I did some googling, and came to the conclusion that we should declare it in the UK.
        HMRC general advice on dual taxation UK - AU dual taxation convention Specifically the text is:
        ARTICLE 6 Income from real property 1 Income derived by a resident of a Contracting State from real property may be taxed in the Contracting State in which the real property is situated. 2 The term "real property" shall have the meaning which it has under the law of the Contracting State in which the property is situated. The term shall in any case include: (a) a lease of land or any other interest in or over land; (b) property accessory to real property; So - it seems we should have been assessed for tax on it in the UK primarily, in which case it would be within the UK personal allowance, and no tax paid. Hence no tax paid in AU either?
        This HMRC consultation from 2014 about removing the personal allowance for non-residents appears to confirm the case, by virtue of the fact the consultation sees it as a loophole that HMG want to close!
        So, my questions are:
        Am I reading this right? Can I declare it on my UK tax return, and pay nothing on my AU tax return? If we've been doing this for 2011-14, can we re-file previous years' returns to reclaim the tax paid in those years, if significant? How far back should tax be reassessed (as I think we were originally claiming a deduction on a net loss on the house of mortgage over rental income during around 2011 to ?) Many thanks!
         
        Damo
         
         
      • By subdividedyoghurt
        Hi,
        I'm from the UK, and have been doing my Australian tax lodgement for the year. I am due to pay the ATO the 2% of my salary for the medicare (just levy, not the surcharge). But my issue is that I have also been paying for the 457 health insurance for the past year, the minimum one that meets condition 8501. However, I remember reading somewhere, some time ago, that once on medicare, this obligatory insurance necessary to get the visa in the first place can be cancelled as medicare meets condition 8501, and that one has to contact DIAC to get a letter or something?
        When I called up the insurance recently to enquire about this, they said I have to maintain the insurance and she got quite funny about it. Does anyone know if, and how, one can get exempt from this health insurance, and also, could I get a refund for the $1000+ I have paid over the past year for something I didn't need due to having medicare? (if the case).
        Also, I was questioning the need of applying for medicare in the first place, as it has worked out a lot more expensive than had I just had the health insurance.. I just did it automatically as everything I had read encouraged to 'get medicare'. I don't understand the ins and outs of the system obviously, so hopefully these queries are simple to answer .
         
        Thanks
         
         
      • By palmtrees
        Hi everyone,
        Just looking for some advice and hoping someone can help me with income tax while on a 417 visa in Australia and how it works. 
        I understand there is information online but it can be quite unclear so I wanted to see if someone can help me- I have started working for a company and get paid monthly. I received my first pay last Friday, but I was taxed more than expected. 
        My understanding is the income tax for people on WHVs changed in Jan 2017, and we are now taxed 15% on every dollar earned, until we have earned $37,000 total and then the income tax increases to around 32%. The payroll at work said my tax was higher than expected because they put me down as a 'resident for tax purposes' and overlooked what I had actually written on the tax declaration form.
        They are now telling me I should in fact be taxed more than I have been already, as they said the 417 tax is split throughout the year so are saying because they will eventually be paying me over $37000 total, my tax is not 15%. I was under the understanding that it isn't worked this way, and it is a flat rate 15% tax UNTIL you have earned $37,000?
        Please could someone help clear this up for me? I'm quite sure I am right however payroll are now ignoring my emails after saying it will be set up how they have suggested (which I believe is incorrect). And it's a few hundred dollars different for me so can't really afford to wait until next tax year end to claim it all back 
         
        Thanks 
         
        NB: I have called ATO as my employer wanted an exemption letter (I'm sure this isn't necessary as it's not an exemption- it's how the tax works?!) but the ATO said they can't supply this and that they cannot help anymore as it's personal tax advice
      • By salsera
        Hi, we have a property which we are renting out in the UK whilst here on a 457. We declared the income from our UK property rental on our Australian tax return last year but now  have been told we also need to complete a UK tax return. How do we ensure that the income from our property is not taxed on our uk tax return when it has been taxed in Australia - we obviously don't want to pay tax twice?
      • By TooEasy
        Hi all
        I just had my 457 approved a few weeks ago (was on 417). Great news, BUT...
        I was so gutted to see on my last payslip (Jul 14th) that I've gone from paying $1,370 in tax to $2,535! That's $1,165 more tax or a 48% increase—enough to pay my monthly rental cost twice over!
        I understand it might just be the way the cookie crumbles, but can anyone with more experience than me with the Aussie tax system confirm that it sounds normal to be paying so much more tax on a 457? It works out around 25% of my monthly salary is tax.
        Is there anything to be done? Will becoming a permanent resident help?
        Any advice hugely appreciated!
        TooEasy 
    ×