Can you save in Oz? Can you transfer the super back to the UK?

[SLM]

Hi,
I have been offered a job as a subcontractor in Perth to start in May. Salary is very attractive but I am aware that the cost of living is high. I would leave my permanent job in the UK and the benefits that come with it. We have an 8 months old baby who will require childcare as my husband would also be working. The aim would be to move for 2 years and then go back to the UK with hopefully some savings. Big gamble, not sure if it is worth it. By the sound of it not many people manage to save in Australia...What kind of income would we need in order to start saving. Cost of moving is not so much of an issue going out there as the company would help with cost but would be coming back.
I am also concerned about the pension situation as I have a permanent resident visa for Australia (my husband is from there but been in the UK for quite a few years now). No intention of retiring in Australia so I would be loosing 9% of my salary and loose 2 years worth of UK pension unless I can transfer it back when I leave.
So many things to consider... Anyone in the same situation?

[Stu]

Not sure about childcare, however I've looked into the super a bit.
Basically if your on any visa that is not classed as temporary you're super is locked into Australia. If you have a 457 for example you can withdraw all your super when you leave, but as soon as you get your PR you can't touch it. I'm still in two minds about this however I think there could be worse places to leave pension money in.
The super is something the employer has to pay. Some jobs the 9% (or whatever % you get) is included in the advertised salary, in others it is +super which means you don't lose the 9%. That's worth getting clarified.
Some super funds also covers other benefits like disability and death, another thing to check out.
You can pay into the UK pension when abroad.

It is difficult to say about saving, obviously we all have different needs in life (big house or a small flat etc) so I would suggest looking at the cost of living info on this site and try and make an educated guess. The biggest way to save money is to live further from the city centre, but that can involve a commute of an hour or more.

Hope that helps.

[scoobynz]

Good luck with the "two years" in Perth. I came to from NZ to London for "two years". . . . . . . . .10 years ago.

Have you investigated Living Away from Home Allowances? google this, sometimes it comes up as LAFHA - difficult to say without knowing your full circumstances but it sounds like you may be entitled to this.

Is your employer UK based or Australia based. If you can negotiate to get paid through a non-Australia based employer you can make some big tax savings, i.e. you would only pay tax on the money you remitted to Australia.

All these things can contribute to savings

[djsfp]

I have dealt with people in this situation. It is good you are considering these things now. Based on the information provided you have some key areas to consider 1) Budgeting - will help with the savings objective 2) Tax - what options are available to your situation 3) Super & NI contributions 4) Existing life/Income protection insurance - are you covered and for what and where 5) If required, what cover is needed here and how to structure it 6) Moving funds between Aus & UK - tax and currency 7) If you refer to the Old age pension funded through NI you might not lose the 2 yrs 8) Where to invest your Super/UK Pension 9) If you have a private UK pension is it a money purchase or defined benefit scheme, there may be issues here 10) LAFHA - potential changes could mean this will change come July 2012. 11) Renting your UK property - check with your accountant to see if any CGT or income tax issues whilst away in Aus.
There may not be as many or more areas to consider, to start check out your UK insurance cover and find out what type of pensions you have. Happy to help more if needed

[SLM]

Thank you for your replies. Very helpful! They seem to be very slow with their recruitment process which has given me plenty of time to look into your points and assess the pros and cons. Childcare would be the biggest expense for us :-) but it is the same in the UK. I know that the 2 years plan could go either way ( left France for a 6 months contract and 13 years on still in the UK...). It now seems to be a matter of me being ready to make the move and embrace the opportunity or play it safely and stay in the UK and enjoy Oz every few years when we go there and visit the OH family.Thanks again for your replies!