Moving from the UK to live in Australia is clearly exciting and provides you with a great opportunity to start a new life in a different country.
However, it can be easy to overlook key financial issues related to moving to a new country, perhaps because, in the case of Australia, there are similarities in language and culture.
In reality, there are a series of potentially impactful decisions you will need to make relating to issues such as dealing with a new tax jurisdiction, how to transition your assets between the UK and Australia, and longer-term issues including planning for your eventual retirement.
Read about six of the most common mistakes British expats make, and how you can avoid them.
1. Not planning ahead
Probably the biggest mistake you can make if you move from one country to another is not doing a lot of the research and planning in advance of your journey.
When you move to Australia from the UK, in the time after your arrival, you’ll likely face plenty of challenges. These may include:
- Getting used to living in a different country
- Building a new social circle of friends
- Starting a new job
- Ensuring other family members, including children, are comfortable and acclimatising.
It won’t take long before it stops feeling like an extended holiday from the UK. So, if you have already done as much of the planning as possible before you arrive, it can really help when you face problems, as well as help avoid them in the first place.
2. Ignoring the threat of currency risk
Fluctuations in the exchange rate between the UK and Australia can significantly affect your finances if you still have ongoing UK earnings that you want to transfer to Australia, or you are looking to transfer substantial financial assets.
As the Australian dollar (AUD) and UK sterling are both relatively strong currencies, dramatic fluctuations in the exchange rate are rare. But even small movements can affect the amount of dollars your pounds will buy you.
For example, as you can see from the chart, the exchange rate has moved between $2.15 and $1.95 since the start of 2025 alone:
Source: Google
To mitigate the effects of currency risk, we would strongly recommend you use a currency broker as they can use various mechanisms, such as forward contracts, to ensure you get the best possible rate.
3. Neglecting estate planning
It’s important for you to be aware that UK wills, power of attorney (POA) documents, and some trust arrangements may not necessarily be valid in a different financial jurisdiction, such as Australia.
As you will appreciate, this could cause complications and create delays for your loved ones and beneficiaries should the worst happen.
We would always recommend, as a priority, that you have separate wills and POAs for the UK and Australia, and clearly demarcate your assets between the two countries.
By working with a cross-border estate planning expert, you can ensure that all your legacy arrangements are in order and that the value of your assets passes tax-efficiently and promptly to your chosen beneficiaries when you pass away.
Find out more: 6 important estate planning tips if you are living in Australia with assets in the UK
4. Overlooking the challenges of tax planning across different jurisdictions
The tax rules applying to British expats in Australia can be complicated and may depend on a number of different factors.
You may assume that you are no longer liable for UK taxes once you have moved to Australia, but that may not necessarily be the case. There is also the issue of planning your return to the UK from a tax perspective, which you may need to take into account.
However, on the other side of the coin, there are some potential tax opportunities related to moving from the UK to Australia that you may be able to take advantage of, such as making super contributions to reduce your taxable income.
As with currency exchange and estate planning, we would strongly recommend that you engage the services of an expert to help you manage this and to ensure you are paying the right amount of tax and making the most of the opportunities available to you.
Find out more: bdhTax, our specialist tax advisory service
5. Missing out on advantageous pension planning opportunities
There are some specific tax opportunities around any accrued UK private, or company pensions you may have and Australian super.
While Australian super contributions and growth are both taxed, you’ll generally pay no tax on income you draw from your fund. The reverse applies in the UK, with payments in being tax free. This means that it’s possible to create a financially advantageous position for yourself if you transfer your accrued UK pension to a QROPS (a Qualifying Recognised Overseas Pension Scheme) super fund.
This is subject to eligibility and where you ultimately intend to spend your retirement years.
This means that it’s important to be aware of the opportunities available around your retirement planning, and to get expert help to ensure you’re able to take full advantage.
Find out more: Why a QROPS could form an essential part of your financial plan
6. Not having a clear idea of your residential property plans
If you own residential property in the UK, one key issue you will need to address will be what to do with this when you move to Australia.
Obviously, this will depend on your long-term plans.
You may want to keep it as somewhere to return to, perhaps using it to create a source of income if you rent it out. This may be an attractive option if you are planning to return to the UK.
You should be aware that rental income will be taxed in the UK, but as an Australian Tax resident you will still need to declare this on your Australian tax return. However, you should then be able to claim a foreign income tax offset (FITO) to avoid being taxed twice.
If you do intend to rent your property out, we would recommend you use an experienced letting agent to manage this on your behalf.
Not only can they deal with all financial and tenancy issues, but it will also give you valuable peace of mind, knowing that your property is being well-maintained and checked regularly.
At the other end of your journey, you will need to think carefully about your residential plans in Australia. Again, this will depend on key issues such as:
- Your long-term intentions
- Where you will be working
- Your financial circumstances.
Because of new restrictions on foreigners buying property in Australia, you will probably need to rent a property when you initially arrive. This will actually help you find your feet and decide where you want to live in a certain area, before you think about entering the property market.
Get in touch
If you are planning to move to Australia, or have already made the move, you should find our guide on this subject useful.
If you would like to talk about your financial plans, please get in touch with us.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only, it does not take into account your personal objectives, financial situation, or needs. Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.
Estate planning and wills are not regulated by the FCA.
All contents are based on our understanding of ATO and HMRC legislation, which is subject to change.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.