Leaving Australia for Job Abroad

Hi there,

I have a job offer from from a company in US and want me to join in 6 week's time (a bit flexible on this), I don't want to leave the opportunity and definitely want to go and work

I want to know experience of people, who have done this recently (giving covid being there) and how easy or difficult was it.

  • How did you manage your properties here, especially PPOR. Any recommendation for a good agents?
  • What address to put on driving license, ATO, Medicare?
  • Should I get rid of healthcare insurance?
  • Any pointers on how are you doing taxes and all?

I know, at this time going to US is risky venture, but I am decided on that and will take a chance. I will relocate with family and kids.

Thanks in advance.

Comments

  • I dont think you can travel there at the moment can you?

    • Can get exemptions if its for work.

      Although don't like the odds of playing Russian roulette with flights

      • Flights are being sponsored by company offering work..

        playing Russian roulette with flights

        You mean to say they can cancel any time?

      • Why does nobody call out "Russian roulette" as a racist term, the way redskin etc have been?

        I reckon it's because it's Russians know it's accurate, and they are damn proud that it's accurate.

  • if these two statistics isn't enough to convince your family to remain in Australia, then have a good life my friend

    https://covid.cdc.gov/covid-data-tracker/#cases_casesper100k...

    https://aatishb.com/covidtrends/

  • You have listed real estate agents, drivers licence, health insurance and taxation of points of concern above COVID.

  • I live in the US but moved here in 2018 as a student, and I don't have experience with everything you asked:
    1. Sorry can't help here I don't own any property
    2: You can list your US address for most of these things. My Medicare ATO etc go to my mum's address in Perth, which I think is easier if you have a family member who can take government mail.
    2.5: driver's licence: if you're here for more than a year you will probably have to get a US licence, and they generally won't recognise your Aus licence (ie you'll have to sit the test).
    3: I'm not 100% on this but I think you can defer penalization for not having insurance while you're out of the country.
    4. Income I earn in the US is taxed in the US. My Australian income is below the tax free threshold (just bank interest). This would be very situation dependent like if you're a US or Aus resident for tax purposes, investment income in Australia etc. You may want to ask an accountant.

    Many of these things are state dependent (both US states and Aus states) so YMMV. Feel free to send me a DM if you have other questions.

      1. You can cancel private health insurance, you can show with entry & exit log from border force when you pick it up again to not get penalised for lifetime health care loading
      2. If you have rental income in Australia you will need to do Australian tax return and taxed at 32.5%. US might want to assess you on that income depending on double taxation treaty. Some items are treated differently ie. Australia doesn't allow expense of travel expenses for rental property, other countries might be allowable expense, in that case you can claim as deduction in US but not Australia.
      • Do I need to report the US income in Australia as well and pay taxes in both countries?

        • -2 votes

          You can easily Google that and the answer to most of your questions.
          You're far from the first person to do this… But might be the last.

        • Depending on your employer they might be able to help with this, especially since they are open to hiring foreigners.

        • You can definitely google this answer but in short and not comprehensive.

          If you are outside of Australia more than half the tax year you are non tax resident. You get taxed like a non tax resident (32.5% plus you report your overseas income so they can calculate HEC or HELP whatever they call it now).

          Also have a quick read on capital gains tax you might need to obtain a valuation on all your assets if you intend to dispose.

          You then become tax resident of the USA depending on their rules. I am not clear on US tax unfortunately. I went through something like this moving to / from the UK.

          If it is simple then you could probably get good records together for future tax reasons. Otherwise best to speak to an accountant who actually knows this stuff. Most accountants only do taxes for residents and have no idea of non resident tax implications.

        • I was in the US for 6 years so have some experience.

          If you are renting out your house, then you will pay tax in Australia on this. You can then state on your US income tax that you paid tax on this income in Australia and will not need to pay it twice due to a tax treaty (obviously get an accountant familiar with international tax stuff - it's a minefield).

          You do not need to claim your US income in Australia (so long as you tell the ATO you are no longer a resident for tax purposes - which also means you pay tax on all your income in Australia).

          You can claim all sorts of stuff that I wasn't aware of on your US tax return such as car rego, mortgage interest (probably not applicable unless you buy something there), etc - ask the accountant.

          Depending on how long you are gone:
          * you can put your AU private healthcare (if you have it) on hold which means you don't have a period of time where you aren't covered (in the ATO's eyes) for when you return.
          * if you are renting your PPOR for >6 years, you will then need to pay GST on the period it is rented vs owned when you sell it.
          * Medicare may indiscriminately cancel your card (they did it to me)

          Make sure that your US job offer includes PAID insurance (at least 75% anyway) - you wont' get a choice of the insurance plan as it will be set by the company/insurance (it's a bizarre setup). It's also ridiculously expensive - I still paid ~$400/month for my 25%.

          PM me if you want more info on anything.

  • +4 votes

    You really need to have a look at this page (and the links on it)
    https://www.smartraveller.gov.au/before-you-go/activities/li...

  • You sure they’ll let you out?

  • I would absolutely go if I were in your shoes. I'd love to take my family and live/work overseas.

    What state are you moving to?

  • If you go do not come back until COVID-19 is resolved

    It is clear that the US has lost control of COVID-19, we don’t want to see another crying expat whinging to come back wanting government assistance.

    You go solely at your own risk.

    • Haha seriously? Op can just go into quarantine for 14 days like everyone else if they wanted to come back.

      What are your thoughts on international tennis players coming here?

  • You need to put your health insurance on hold, otherwise you will be paying loading of 2% each year you don't hold private health insurance - I don't know the full specifics, but i remember reading about this before - slugging of additional government medicare fees YoY if you don't hold private insurance

    • Came to say this. There is a maximum number of years you can put it on hold for though. From memory it is 2-3. This only matters if you are 31+ though.

    • I wouldn't massively worry about this. Most financial breakdowns I've seen show that paying private health for age 30-50 just to keep lifetime loading down is a massive false economy. Younger policy holders subsidise older policy holders. Much more advantageous to the individual (well, having higher expected value) to get private cover at around age 50 or 60.

  • Think you are pushing your luck to expect to get a work permit issued in just 6 weeks.

    • they have just announced that all visitors must quarantine. So that needs to be taken as consideration as well.

  • Check new health insurance policies carefully as some are now excluding Covid health care for new customers.

    Even here! https://www.google.com.au/amp/s/amp.abc.net.au/article/12093...

  • Taxes are going to be the biggest issue. You want to leave Australia permanently to avoid complications.

    However if you are non resident then you'll lose any capital gains advantages you had when it comes time to sell your property… so you'll want to return before you sell it. Or sell before you leave.

    But then returning is quite difficult for Australians abroad last year and this, and there's no guarantee this pandemic won't keep going for a few years yet.

    • Key thing with taxes is that you have assets in Australia so you will need to seek proper international tax advice. Your new company pay for this though if you ask them.

    • OP will also potentially be paying taxes in the US on gains in AU super. Yup, even if he hasn't cash it out yet.

      • WTF! Spoken by true Aussies who've never lived outside of their state. No you will NOT have to leave Australia permanently if you have "assets"! Geez I rarely comment but this advice is sooo bad.

        The only good advice, speak with your new company not these nimrods. If they're hiring overseas workers then they'll be able to help you negotiate US tax laws which aren't that more complicated than AU laws if you pull a regular paycheck.

        Good luck and safe travels…it's not that hard!

        • You're right. Some people's thoughts here on positive global opportunities for other people, speaks volumes about these folks…..

  • I don’t have much advice except ignore these idiots banging on about COVID. You shouldn’t live your life dictated by tiny, fractional risks. Best of luck with the move, I doubt you’ll regret it.

    • I do so agree! Take the job, you won't regret it. I moved in 1998 from America to Sydney for a job. Going to last for 2 years I said to myself. An adventure! Well I ended up staying 20 years and I don't regret a minute. Take the shot (in hockey parlance) 😁 or wonder forever.

  • Oh and by the way, he will not be an American citizen, so no, he will NOT be paying US taxes on gains in AU super. That's ridiculous. I was an American living in AU and was never taxed on super gains. In the US the major retirement vehicle is a 401K, gains are not taxed in the US until withdrawal.

  • https://www.cnbc.com/2021/01/20/oaktrees-howard-marks-on-unr...

    Janet Yellen, Biden's nominee for Treasury Secretary, said she would consider taxing such unrealized gains to boost government revenues, reported Reuters.

  • I recommend checking out americajosh.com and Aussies in America groups such as 'Australians in NYC' on Facebook. A lot of direct, lived experiences and advice from other Aussies doing this.

  • Did you end up going or nah?