We have recently published articles by bdhSterling colleagues who have made the move from the UK to Australia, and have shared their experiences:
- Josh Scott recently moved to work in our Melbourne office.
- Our Group Managing Director, Simon Harvey, emigrated with his family to Perth.
If you’re planning to make the move yourself, or even just thinking about it, they are well worth a read.
A key theme in both their stories was the importance of starting the planning process early.
This article explains why.
The practical and financial aspects of your move need careful planning
Moving from the UK to Australia is an exciting decision that could be life-changing for you and your family.
Whether you’re relocating for work, lifestyle, or your retirement, the move often comes with visions of sunshine, open space, and a fresh start.
Your priorities are understandably going to be practical, centred on the move itself, then on finding work and somewhere to live.
You will also need to address the range of financial issues related to your move, including relocating your financial assets and dealing with a new tax system, pension rules, and investment structures.
Starting your planning process early gives you more time to manage both the practical and financial sides of the move without unnecessary stress.
Visa processes can be time-consuming
Both Josh and Simon referred to visas and the time required to obtain them.
It’s certainly true that Australia’s visa process can be laborious, regardless of the type of visa you are applying for. Then there are other visa-related issues, such as medicals, form filling, and ensuring you have all the right documentation, that need to be taken into account.
Having a valid visa is a prerequisite for many other aspects of your move. Because of all that, it’s worth starting the process as soon as you can and seeking professional help from an emigration expert can help avoid unnecessary setbacks.
Understanding the true cost of emigrating
It’s easy to underestimate the costs of emigrating to Australia, so getting at least an outline of the financial commitment required is an important first step.
You need to consider factors such as:
- Visa application fees and the cost of legal advice
- Getting you and your possessions to Australia
- Living costs, such as temporary accommodation and rental deposits
- Possible school fees for your children.
For families, especially, it’s not an exaggeration to say it’ll easily be a five-figure sum by the time you’ve finished.
Planning early allows you to get an idea of the cost and to start budgeting. It also reduces the likelihood that you will need to draw on long-term investments to cover short-term costs.
Property decisions require careful thought
You may face two property-related dilemmas related to your move:
- What to do with your UK property if you own one
- Finding somewhere to live when you arrive in Australia.
Keeping your UK property and renting it out can provide valuable extra income, but it also introduces complexity involving taxes, management, and potential currency risk.
At the same time, selling it can provide you with a handy lump sum of capital to help fund your transition and use it towards an eventual property purchase in Australia, but that process can be drawn out and may depend on your long-term plans.
Finding suitable housing in Australia can also be challenging, as both Josh and Simon noted.
Restrictions on property purchase may mean renting initially, and it also makes sense to try living in an area first before making a big financial commitment to buy a house or apartment.
The rental markets in cities such as Sydney, Melbourne, and Perth can be competitive, and upfront costs such as deposits, moving expenses and furnishing a new home can add up quickly.
So early planning can pay dividends and save you a lot of stress when you arrive.
Banking and other financial matters
Setting up appropriate banking arrangements early can make the transition smoother, as it means you can arrive in Australia and start banking straight away.
Some banks will allow you to set up your account while you are still in the UK, and then simply visit a branch when you arrive in Australia to confirm your ID and start banking.
International moves can often involve transferring large sums of money for living expenses, investments, school fees, and ultimately, property purchase. So having a bank account in place can smooth all these out.
Without planning, exchange rate volatility and poor transfer timing can reduce the value of your savings. Thinking ahead about your banking arrangements can save you time and money.
Healthcare and insurance considerations
After having somewhere to live and access to money, probably the next key issues to address are healthcare and your current insurance arrangements. Again, some early planning can be highly advantageous.
Australia’s Medicare system works differently from the NHS, so it’s important to do some research and find out what the requirements are for accessing available services. You’ll also want to get copies of your medical records so you can take these to Australia with you.
You may also need to review:
- Any existing private health insurance you have
- Life insurance you have in place
- Income protection cover.
In each case, planning ahead helps avoid coverage gaps and gives you valuable peace of mind.
Find out more: Moving from the UK to Australia: Why getting your insurance right early matters
The value of early expert advice
We have helped many clients with the financial planning aspects of moving from the UK to Australia.
With that experience, we know there are several financial elements where early planning and expert advice can save you money and help you avoid making any errors that may be irrevocable and potentially costly.
For example:
- It’s important to understand your tax residency status and how your departure date and sale of assets can affect your tax position.
- You may have accrued UK pensions, and deciding what to do with these, especially if you are close to retirement age and plan to retire in Australia, is a key issue.
- The tax treatment of investments can differ between the UK and Australia, so advance planning can save you money.
All of these issues need careful consideration and planning.
Find out more: Moving to Australia – your financial emigration checklist
Moving to Australia? Here are 7 key financial issues that need to be part of your plan
Get in touch
If you are planning to move from the UK to Australia and would like to talk about your financial planning, 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. All contents are based on our understanding of HMRC and ATO legislation, which is subject to change.