Are you an expat moving to Australia to retire, work or live?
Living as an expat overseas gives individuals the opportunity to fast-track career aspirations and start a new adventure in a foreign country. However, for many expats, there comes a time when moving home or starting a new journey in Australia comes calling. The reality is as an expat moving to Australia there are some essential financial planning that must happen before making the move.
What the past year has shown us is that things can change at the drop of a hat. Forward planning should be a top consideration when deciding to move to Australia to benefit the most from your worldwide assets that you have accumulated overseas. It is vital to begin planning as soon as possible to avoid unfavourable tax rates. Consulting with your financial advisor and researching can help save you in the long run.
Having lived and worked overseas you will likely have accumulated superannuation in that country. However, this structure is different from the Australian system which often creates challenges for those moving to Australia to efficiently benefit from their hard earned assets. Without a foreign superannuation plan that meets the requirements of the Australian Tax Office (ATO), your overseas superannuation can be taxed at a high rate upon entry to Australia. As with any retirement planning, it is vital to think about tax implications and age restrictions from the outset.
Before moving to Australia, it is vital that you seek advice 6-12 months prior to relocation regardless of whether you are a resident or not. Proper preparation allows for selling off assets and other considerations such as bonuses and exchange rates. Once you have taken all these considerations into account you are ready to come home or begin your new journey in Australia. Find out more about how a foreign superannuation plan can benefit you in your move to Australia.