Essential Tips and Considerations for Australian Expats Moving Abroad
- Mitchell Kelsey
- Apr 7
- 5 min read
Moving abroad is an exciting time, but for Australian Expats moving abroad, there are important financial considerations to keep in mind to ensure a smooth and successful transition. If you're relocating for work, family, or lifestyle, it's crucial to be well-prepared for the changes that will affect your finances, taxes, and legal obligations. In this blog post, we’ll discuss some key tips and considerations when making the transition to life overseas.
In addition to this blog, be sure to check out our Pre-Departure Checklist.
Understand Your Australian Tax Residency Status
One of the first things Australian Expats moving abroad need to consider is their tax residency status. Your tax obligations in Australia depend on whether you remain a tax resident of Australia or become a non-resident.
Tax Residents: If you're still considered an Australian tax resident, you'll be taxed on your worldwide income, including on your overseas salary.
Non-Residents: As a non-resident, you’ll only be taxed on your Australian-sourced income.
Your residency status will likely change once you move abroad, and understanding this change is essential to avoid unnecessary tax pitfalls. For this reason, it is encouraged to consult a professional Tax Accountant and Expat Financial Adviser before you depart.
Learn more about the Australian Tax Residency Rules.
Get Your Financial Accounts in Order
Before you leave Australia, ensure that all your financial accounts are up to date. This includes:
Notifying your Australian Banks: Inform your Australian bank of your move and understand how to manage your account from abroad. This will also ensure the correct taxes apply to any bank interest.
Notify Share Registries: If you own shares or other investments, inform your investment provider of your move to ensure tax compliance.
Access & Payment Methods: Arrange for access to your funds while abroad and update payment methods, such as credit/debit cards, to ensure these can be used internationally.
International Bank Accounts: Open an international bank account in your new country.
Managing your finances well in advance will save you time and hassle after your move.
Review Your Superannuation
If you have superannuation in Australia, it's important not to neglect it. As an Australian Expat, you can still:
Optimise your super in Australia: Your super will continue to grow while you live abroad, and you can still make further contributions to grow your retirement savings. Special considerations apply if you have a Self-Managed Super Fund (SMSF) or reside in the United States.
Roll it into a different Australian fund: As an Australian Expat, you can still roll over your superannuation into a different super fund should you wish. If you prefer a more hands-off approach, transferring your super to a low-cost Australian super fund could be an option.
It's advisable to seek professional advice on superannuation to make sure you're optimising your retirement savings while living abroad.
Learn more about Expat Superannuation.
Stay Updated on Australian Laws and Regulations
For Australian Expats moving abroad, staying informed about Australian laws and legislation is crucial. Tax regulations, superannuation laws, and residency rules can change, and it’s essential to stay up-to-date on any legislative changes that could affect you. This includes:
Tax residency rules: As mentioned earlier, your tax obligations will depend on your residency status, so make sure to understand how any changes in the law could impact your taxes.
Superannuation changes: New regulations may affect how you can contribute to or access your superannuation.
Estate planning: If you’re living abroad long-term, you might need to revise your estate plan to ensure that your assets are properly distributed in both Australia and your new country of residence.
Staying on top of these changes will help you avoid legal issues or unexpected tax liabilities. You can stay up to date by following reputable businesses that work specifically with Australian Expats. You can subscribe to our monthly newsletter here.
Be Aware of Currency Exchange Rates
Currency exchange rates can fluctuate significantly, and if you're receiving income from both Australia and your new country of residence, it’s essential to consider how exchange rates might impact your finances. You could be subject to exchange rate risks when transferring money between countries, which may affect your income and investments.
Consider opening a multi-currency account or working with a foreign exchange provider that offers favourable exchange rates to mitigate the effects of currency volatility.
Learn more about Foreign Currency Risk and how it impacts Australian Expats moving abroad.
Health Care and Medical Insurance
Australia has a world-class healthcare system, but as an Australian Expat, you’ll need to arrange new health coverage. In some countries, you may have access to employer-provided health care or public healthcare, while in others, you may need to invest in private health insurance.
Life Insurance: Review your life insurance policy and ensure it covers you while abroad.
Health Insurance: Consider international health insurance to account for your medical needs abroad.
Review employer insurance: Review any insurance coverage provided by your international employer to ensure it is adequate for your needs.
Check if your new country offers reciprocal health agreements with Australia. Countries like the UK, New Zealand, and several others have agreements with Australia that provide access to certain healthcare services.
Plan for the Emotional Transition
Moving abroad isn't just a financial and logistical challenge; it can also be an emotional one. The transition to a new culture, language, and lifestyle can take time, so it's essential to mentally prepare for the change.
Build a support network: Connect with fellow Australians abroad or expat communities in your new location to help you feel at home. Joining Facebook groups is a great place to start.
Keep in touch with loved ones: Regularly communicating with family and friends back home can ease the emotional distance.
Embrace the new culture: Immerse yourself in the culture and community of your new country to make the adjustment smoother.
Seek Professional Advice
Finally, as Australian expats moving abroad, it's advisable to consult financial professionals who specialise in Australian Expat services. You can ensure you make the most of your time financially while abroad with a financial plan formulated by an Expat Financial Adviser. It’s also advisable to consult with a Tax Accountant familiar with the tax rules applicable to Australians living abroad. Navigating the complexities of tax laws, superannuation, insurance, and other financial matters requires expert guidance to ensure you're making the best decisions for your future.
Learn about the importance of partnering with an Expat Financial Adviser.
Conclusion
Moving abroad as an Australian Expat is an exciting new chapter, but it requires careful planning and consideration. Understanding your tax residency status and staying informed about financial and legal obligations in Australia is crucial for a smooth transition. By following these tips, you can ensure that your move is not only financially secure but also a fulfilling and rewarding experience. For Australian Expats moving abroad, take the time to plan ahead, seek expert advice, and stay organised.
Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.
If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:
General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.
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