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Unpacking the Cost of an Overseas Sea Change · She's On The Money

0:00
Speaker 1: Hello.
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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
0:05
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
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Speaker 2: get started on She's on the Money podcast, I would
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Speaker 2: like to acknowledge the traditional custodians of the land of
0:14
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
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Speaker 2: the elders, the ancestors and the next generation coming through
0:23
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
0:27
Speaker 2: the storytelling of you to make a difference for today
0:31
Speaker 2: and lasting impact for tomorrow.
0:33
Speaker 1: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money. Hello, and
0:58
Speaker 3: welcome to She's on the Money podcast for millennials who
1:01
Speaker 3: want financial freedom. My name is Beck Sayed and VD
1:04
Speaker 3: Today we are talking about the cost and considerations of
1:07
Speaker 3: moving overseas.
1:09
Speaker 1: Hello, Becksayed.
1:10
Speaker 3: We absolutely are, and according to Smart Traveler, at any time,
1:15
Speaker 3: there are around one million Australians living and working overseas,
1:19
Speaker 3: so I think this is relatively.
1:21
Speaker 1: Important to talk about. Yea and millions. I didn't expect
1:24
Speaker 1: that number, so a lot of people will be able
1:26
Speaker 1: to relate to this one. I feel like that's true.
1:28
Speaker 3: But I also feel like, even if they're not currently overseas,
1:32
Speaker 3: how many of us have fantasized about moving to London exactly,
1:35
Speaker 3: but we all want to do it.
1:36
Speaker 1: How much is it going to cost that? Please talk
1:38
Speaker 1: about it. We're going to give you the answers today. Now.
1:41
Speaker 3: I know each country, of course, has specific costs and requirements,
1:44
Speaker 3: but today we're giving you a general consideration, talking things
1:47
Speaker 3: like bank accounts, hex tax, super investments, et cetera, et cetera.
1:52
Speaker 3: But first, b what are some rough ranges for shipping
1:54
Speaker 3: your stuff overseas? Just to give us for shipping your
1:56
Speaker 3: stuff overseas? That's where you want to start. I want
1:59
Speaker 3: to start there. Want to start there? Do you reckon?
2:01
Speaker 1: You chip all your stuff overseas too?
2:03
Speaker 3: Maybe be cheaper than selling everything? About buying it brand new?
2:06
Speaker 1: It's a good point.
2:07
Speaker 3: You'll find out if that's the case, because I've got
2:09
Speaker 3: some cheeky, chiky novels.
2:11
Speaker 2: Are you?
2:11
Speaker 1: Are you already? I'm ready?
2:12
Speaker 3: So obviously everyone's circumstances and destination are completely different. But
2:17
Speaker 3: here's a quick overview of the average moving overseas shipping
2:21
Speaker 3: costs to various destinations around the world. Right, so this
2:24
Speaker 3: is based on moving belongings for obviously an entire three
2:29
Speaker 3: bedroom house moving port to port. I got all these
2:32
Speaker 3: stats back from a website called Syrello. I think that's
2:35
Speaker 3: how you say it. But essentially they're an online platform
2:38
Speaker 3: who I guess cross compare moving quotes and costs. Obviously,
2:42
Speaker 3: we're not endorsing them because I've never heard of them before,
2:44
Speaker 3: but I found their data and stats really interesting and
2:48
Speaker 3: there's nowhere also on the internet that actually provides this information.
2:51
Speaker 3: So if you're planning on moving overseas, this might be
2:53
Speaker 3: like a helpful tool. So we're moving from Australia, yep,
2:56
Speaker 3: all of these are based on you moving from Australia.
2:59
Speaker 1: You're going to move to New Zealand.
3:00
Speaker 3: It's going to cost between eight hundred and sixty to
3:03
Speaker 3: thirteen hundred and forty five dollars to move your stuff.
3:05
Speaker 1: Oh okay, that's not as bad as I thought to
3:08
Speaker 1: be honest.
3:08
Speaker 3: I feel like a grand is about what people are
3:11
Speaker 3: spending on, like a brand new mattress and bed frame
3:13
Speaker 3: and bedside tables and stuff. So might it make sense
3:15
Speaker 3: to actually take your own in this case?
3:17
Speaker 1: Yes, I think so.
3:19
Speaker 3: If you move into Singapore, it's between seventeen hundred and
3:22
Speaker 3: twenty three hundred bucks, Japan seventeen hundred twenty six hundred
3:27
Speaker 3: dollars Canada five grand to twelve and a half thousand dollars.
3:32
Speaker 1: So we are starting to get up there.
3:34
Speaker 3: Okay, you're going to move to France, it's between five
3:37
Speaker 3: thousand to seven thousand, nine hundred bucks UK, which I
3:41
Speaker 3: think is arguably the most popular, because who doesn't want
3:43
Speaker 3: to move to London? The one between five thousand, two
3:46
Speaker 3: hundred to eight grand. And if you want to move
3:48
Speaker 3: to the US between fifty two hundred to twelve thousand,
3:52
Speaker 3: five hundred dollars, what the heck?
3:54
Speaker 1: In Oh, Okay, that sounds a little bit more like
3:58
Speaker 1: what I was vibing. To be honest with you, I.
4:00
Speaker 3: Feel like that's a good estimation because obviously, if you're
4:03
Speaker 3: moving to the US, it's going to be very different
4:05
Speaker 3: to New Zealand because obviously our New Zealand friends are
4:08
Speaker 3: our friends across the ditch and that's much less. So
4:11
Speaker 3: maybe if you are moving there, it would make sense
4:13
Speaker 3: to take your stuff, But spending twelve grands to.
4:17
Speaker 1: Move most after the US, absolutely not no.
4:19
Speaker 3: And if you budget for that, you could just go
4:21
Speaker 3: on a whole shopping spree by brand new everything.
4:24
Speaker 1: I don't know if this.
4:25
Speaker 3: Is true either completely wild. Guess I'm assuming Facebook Marketplace
4:30
Speaker 3: in the US is way more exciting than Australia. Oh yeah,
4:36
Speaker 3: I just feel like finding secondhand furniture because I don't
4:39
Speaker 3: know about you, but like I often find myself on
4:41
Speaker 3: American TikTok and people finding like couches on the streets
4:45
Speaker 3: of New York and they're like designer couches.
4:47
Speaker 1: I'm like, well, that would obviously happen for me. Obviously.
4:50
Speaker 3: Yeah, of course, as soon as you get there, now'll
4:53
Speaker 3: be I think, I know what you're gonna say, but
4:55
Speaker 3: I want to know about insurance. What are your thoughts
4:58
Speaker 3: on it moving overseas? How important actually is it? I
5:01
Speaker 3: know you know that I'm going to say it's very important,
5:04
Speaker 3: but essentially it is. And the reason is because I
5:07
Speaker 3: think if you're going to take such a risk and
5:09
Speaker 3: move overseas, insurance is the thing that's going to make
5:12
Speaker 3: sure that.
5:12
Speaker 1: You're safe over there. Let's call it like a safety net.
5:15
Speaker 3: So obviously, as I've said on the podcast, harsh but true, Beck,
5:20
Speaker 3: if you can't afford to pay for insurance, you can't
5:22
Speaker 3: afford to travel.
5:24
Speaker 1: Straight in the gut, always hit in the gut.
5:25
Speaker 3: That like, also, it's the most financially responsible thing to say,
5:30
Speaker 3: and you've got to remember that. As an ex financial advisor,
5:34
Speaker 3: I see it all like and unfortunately, from my perspective,
5:38
Speaker 3: that's the truth. Like I remember one of my friends
5:40
Speaker 3: who was going on and overseas eero troupe, and she
5:42
Speaker 3: was so excited about it, and we got a wine
5:44
Speaker 3: before she.
5:45
Speaker 1: Left, and I was like, oh my gosh, who did
5:46
Speaker 1: you go with? Because I'm obviously pervy when it comes
5:48
Speaker 1: to money. I was like, who'd you go with for insurance?
5:50
Speaker 1: And she's like, oh, it doesn't matter.
5:52
Speaker 3: I think I've got some free stuff on my credit card,
5:54
Speaker 3: and like I booked my flats on credit card and I.
5:55
Speaker 1: Was like, oh okay, what credit card? Dore you?
5:59
Speaker 3: We? So then we spend twenty minutes of me like
6:02
Speaker 3: deep diving into their insurance and I was like absolutely insufficient,
6:04
Speaker 3: Like what if.
6:05
Speaker 1: You get sick, what if you break your leg? What
6:06
Speaker 1: if you do all these other things? And did they
6:09
Speaker 1: cancel the trip straight after?
6:10
Speaker 2: No?
6:11
Speaker 1: They didn't. We had this.
6:12
Speaker 3: It wasn't arguing because like obviously I'm not gonna argue
6:15
Speaker 3: with you, but I was like, you are definitely getting this.
6:18
Speaker 1: Do you know what ended up happening? I gifted it
6:20
Speaker 1: to her the next day. I just couldn't do it.
6:22
Speaker 1: I just couldn't deal with it.
6:23
Speaker 3: I was like, I know that those are your values
6:25
Speaker 3: and I see it, but like, I am going to
6:27
Speaker 3: stay up all night being like she's in Europe. What
6:31
Speaker 3: if she goes hiking in Italy in falls over and
6:33
Speaker 3: needs to get home?
6:34
Speaker 1: Like absolutely not so very sweet of you.
6:37
Speaker 3: V No, it had nothing to do with me being
6:39
Speaker 3: sweet and everything to do with me lessening my.
6:42
Speaker 1: Own It's nice, but I was also like, a, I
6:46
Speaker 1: can't be that friend. You know what happens if something happens.
6:50
Speaker 3: And I kind of was like, in my head, if
6:52
Speaker 3: I buy this, it's going to be the biggest waste
6:53
Speaker 3: of money. And that's great because nothing will happen, and
6:55
Speaker 3: then I sleep at night. That's a really good way
6:58
Speaker 3: to look at it. I would like to through the
7:01
Speaker 3: night without waking in a panic. So I'm going to
7:03
Speaker 3: buy you travel insurance. It's probably not the way everyone
7:07
Speaker 3: should deal with their stuff. I think that's just me
7:09
Speaker 3: being kind of a little bit low sunity, but I
7:12
Speaker 3: was like, absolutely not. I kind of caught up for
7:14
Speaker 3: a wine with you. What if something then happened, What
7:17
Speaker 3: am I going to tell to your parents?
7:18
Speaker 2: Oh?
7:19
Speaker 1: Yeah, I told her to get it, but she didn't.
7:22
Speaker 3: Yeah, absolutely not, And she wasn't going for that long,
7:24
Speaker 3: so like, wasn't that expensive?
7:25
Speaker 1: She I was kind of low key, like, no, you're
7:27
Speaker 1: going to do it. You can tell I'm the older sister, right.
7:31
Speaker 1: Oh yeah, yeah, it's a bit obvious. I love that
7:34
Speaker 1: about you.
7:34
Speaker 3: So Obviously, travel insurance very very important if you have
7:38
Speaker 3: a job in the country that you're going to be
7:39
Speaker 3: living in already. So sometimes that can be teed up early.
7:43
Speaker 3: Check whether your new employer actually has insurance before you leave,
7:47
Speaker 3: because you know, if you're moving to the US, they
7:49
Speaker 3: might actually already have a health insurance policy for you,
7:53
Speaker 3: or some type of insurance policy that could benefit you.
7:57
Speaker 3: And in that case, there's literally no reason to double up,
8:00
Speaker 3: Like why pay twice? It doesn't make it double nice, Like,
8:03
Speaker 3: I just don't think that's a good idea. So confirm
8:05
Speaker 3: if you're covered for like medical expenses or theft of valuables,
8:09
Speaker 3: baggage damage, cancelations, or flight interruptions, So if you're moving
8:13
Speaker 3: for work, they might have actually done all of that
8:15
Speaker 3: for you already to cover their butts, which would be
8:17
Speaker 3: very smart. But in that case, check so that you
8:20
Speaker 3: don't double pay.
8:21
Speaker 1: That's a great idea.
8:22
Speaker 3: The insurance so nice you bought it twice doesn't actually
8:26
Speaker 3: double pay out, which sucks. If your employment agreement offers
8:30
Speaker 3: medical cover, make sure that you actually clearly understand what
8:34
Speaker 3: is and isn't included in the policy because they might
8:36
Speaker 3: be like terms that you don't understand. Do a quick
8:39
Speaker 3: google or even call the insurance company and be like,
8:42
Speaker 3: what does this mean? What's included?
8:43
Speaker 1: What's not?
8:44
Speaker 3: Because like maybe maternity isn't covered. Be like, that's not
8:47
Speaker 3: an issue for me in the next twelve months. I'm
8:49
Speaker 3: going overseats to live my best life. Not going to
8:50
Speaker 3: be a problem. But then dental isn't And you're like, oh,
8:53
Speaker 3: like what if something happens and I'm overseas, that could
8:57
Speaker 3: be a really really big cost. So make sure the
8:59
Speaker 3: things that are import to you were included. Consider local
9:03
Speaker 3: insurance to cover your needs instead of long term travel
9:05
Speaker 3: insurance because long term travel insurance can be really expensive,
9:09
Speaker 3: and if you're moving overseas for an extended period of time.
9:12
Speaker 3: As much as you can buy travel insurance, it might
9:14
Speaker 3: not be the best financial decision, So make sure you
9:17
Speaker 3: choose a cover that actually suits your needs and is
9:20
Speaker 3: actually valid for the entire period that you're living overseasch So,
9:23
Speaker 3: some travel insurance companies might say, ah, this is our
9:27
Speaker 3: travel insurance for a maximum of six months in the policy,
9:31
Speaker 3: So even if you can go and sign up for
9:33
Speaker 3: it for longer, it might not be valid.
9:35
Speaker 1: So double check that.
9:37
Speaker 3: If you extend your stay, remember also to extend your insurance.
9:41
Speaker 3: Like what if you beck go overseas and meet the
9:43
Speaker 3: love of your life and you're like, I'm just going
9:46
Speaker 3: to cancel this flight and stay another three months.
9:49
Speaker 1: Okay, I'm all for that.
9:51
Speaker 3: I love love, But go check your insurances and extend
9:55
Speaker 3: them out for another three months.
9:56
Speaker 1: Gotcha? Gotcha?
9:57
Speaker 3: Because what if God forbid something happens in our last
10:00
Speaker 3: three months when you've canceled it, Because it would when
10:02
Speaker 3: you don't have it as well. That's how it works.
10:04
Speaker 3: Rights of physics, that's exactly.
10:06
Speaker 1: They're the rules of the world. I don't make them,
10:08
Speaker 1: I just have to obey them.
10:10
Speaker 3: If you're not insured, you actually might have to pay
10:13
Speaker 3: thousands of dollars for upfront medical care. And I need
10:17
Speaker 3: you to understand what a reciprocal healthcare agreement is, right,
10:21
Speaker 3: So in Australia, we're actually lucky to have these agreements
10:25
Speaker 3: in place with eleven different countries where we are actually
10:28
Speaker 3: able to access publicly funded medically necessary care. So those
10:33
Speaker 3: countries are the UK, Sweden, Slovenia, Ireland, Norway, New Zealand,
10:38
Speaker 3: the Netherlands, Multi Italy, Finland and Belgium. Oh how very
10:41
Speaker 3: lovely exactly? Isn't that kind of cool? So you need
10:44
Speaker 3: to take that into consideration. If you're, like, you know,
10:47
Speaker 3: going for the top top tier of medical cover, sure
10:50
Speaker 3: do you need it? What's included in our reciprocal healthcare agreement?
10:53
Speaker 1: Ah? I did not know that was the thing that
10:56
Speaker 1: is really cool, that's really cool. I'm going to go
10:58
Speaker 1: have a Google. Let's have a little break, A little
11:00
Speaker 1: break already. I'm on a roll. It's too soon, isn't it.
11:03
Speaker 1: But I do need a little bit of ra So
11:06
Speaker 1: got to a quick breaking on the flip side, We're going.
11:08
Speaker 3: To talk more about tax and importantly, what do you
11:11
Speaker 3: do with your hex when you move overseas.
11:14
Speaker 1: Let's do it all right for we are back now,
11:21
Speaker 1: I'm so excited. Are you excited?
11:23
Speaker 3: Well, you're telling me that I get to talk about
11:25
Speaker 3: tax and hex, so I'm ready.
11:27
Speaker 1: I did say you can talk as much as you like.
11:29
Speaker 1: No one's going to stop you. So this is producer.
11:31
Speaker 1: She will stop.
11:32
Speaker 3: You would let me, she would not let me, probably
11:35
Speaker 3: for the best we'd be. Now I want to talk
11:38
Speaker 3: about tax.
11:39
Speaker 1: How does it work when we move overseas?
11:41
Speaker 2: All right?
11:41
Speaker 3: So if you're an Australian resident and you're planning on
11:44
Speaker 3: moving overseas and the intention is to remain an Australian resident,
11:48
Speaker 3: then you are obliged to still lodge even if it's
11:51
Speaker 3: zero dollars an Australian tax return each and every single year.
11:55
Speaker 1: But you didn't see that coming. Oh, if you're.
11:57
Speaker 3: Working while you're there, you actually need to let the
12:00
Speaker 3: ATO zero of all your foreign employment income as well
12:04
Speaker 3: as any exempt income, even if tax was withheld in
12:07
Speaker 3: the country where you earned it. So we're not saying
12:09
Speaker 3: you're going to be double tax, but you do need
12:11
Speaker 3: to declare it to them and be like, by the way,
12:13
Speaker 3: like you know, I got paid thirty thousand pounds for
12:16
Speaker 3: my job in the UK, and they'll go, thanks for
12:18
Speaker 3: letting us know, Beck, this, this and this, because you
12:20
Speaker 3: still have to pay hex while you're away, and that
12:23
Speaker 3: is joke. Like it's not a joke, it makes sense,
12:25
Speaker 3: but like you're going to end up with a hex
12:27
Speaker 3: bill when you get back, and you might end up
12:30
Speaker 3: on the back foot. So if you work for an
12:32
Speaker 3: international company and you're doing what's called a campus exchange,
12:36
Speaker 3: then you're actually going to be taxed in exactly the
12:38
Speaker 3: same way as you were in Australia. So like, let's
12:41
Speaker 3: pretend for a hot second that she's on the money
12:44
Speaker 3: is actually UK based and you're currently working at our
12:47
Speaker 3: Australia office. And then I say, hey, Beck, come work
12:50
Speaker 3: in the UK office. But your contract for Australia is
12:53
Speaker 3: going to stay exactly the same. You're just going to
12:55
Speaker 3: come and work for us in the UK, So nothing
12:58
Speaker 3: about your income would change, which means you still do
13:00
Speaker 3: an Australian tax return, but you're working in another country.
13:04
Speaker 3: There are a whole heap of things to consider when
13:07
Speaker 3: that happens, and one of those things is the exchange rate.
13:10
Speaker 3: So like right now, if let's say she's on the
13:12
Speaker 3: money was an American company. The American exchange rate sucks,
13:17
Speaker 3: So like if I was still paying you in Australian
13:19
Speaker 3: dollars but you were living in the US, you would
13:22
Speaker 3: have to convert some of your Australian dollars to the
13:24
Speaker 3: US dollars so you could spend it and live there.
13:27
Speaker 3: You're actually on the back foot because the exchange rate sucks.
13:32
Speaker 1: So you need to.
13:32
Speaker 3: Consider those things when making decisions like that, because you
13:36
Speaker 3: might go, oh, v that makes sense, that's easy because
13:39
Speaker 3: I know for my budget how much is in there.
13:41
Speaker 3: Like in my brain, Australian dollars just work better, and
13:44
Speaker 3: a lot of people will immediately go that makes sense,
13:46
Speaker 3: no worries. But in reality you might be being a
13:50
Speaker 3: little bit messed over by the exchange rate because there's
13:53
Speaker 3: someone who's heading to the US soon. The exchange rate
13:55
Speaker 3: is not that pretty and I'm not looking forward to
13:57
Speaker 3: paying for things in US dollars.
13:59
Speaker 1: Got okay?
14:01
Speaker 3: And I know you said you won't be taxed twice YEA,
14:04
Speaker 3: Let's talk about it more, right, because that seems I can't.
14:07
Speaker 3: It's a scary concept, right, because if you're moving overseas
14:10
Speaker 3: and you're like, well, why do I still have to
14:12
Speaker 3: do an Australian tax return. Surely they're trying to, you know,
14:15
Speaker 3: do a money grab. That's not the case at all.
14:18
Speaker 3: It would actually be very unusual for you to be
14:21
Speaker 3: taxed twice for anything.
14:23
Speaker 1: In Australia.
14:24
Speaker 3: We have what's called tax treaties with lots of different countries,
14:28
Speaker 3: which are formal agreements between two different jurisdictions, and we
14:31
Speaker 3: currently have these treaties in place with more than forty
14:34
Speaker 3: different jurisdictions, which is kind of cool. And these treaties
14:37
Speaker 3: are also known as double tax agreements, and they're in
14:41
Speaker 3: place to prevent people from being taxed twice.
14:44
Speaker 1: Okay, So it's okay, it's not something you need to
14:47
Speaker 1: worry about.
14:48
Speaker 3: And you're obviously in the top list of countries that
14:52
Speaker 3: has this treaty where Australia is, the UK and the US,
14:55
Speaker 3: so don't worry too much.
14:56
Speaker 1: What about the other ones that are.
14:57
Speaker 3: Not I'm not going to go through a list of
14:59
Speaker 3: forty if you are learning on movie, what do you
15:03
Speaker 3: mean the ones that aren't there? Right? So it's just
15:07
Speaker 3: a little bit more complex. So it just means that
15:09
Speaker 3: when you're submitting your tax return, there's no treaty in place,
15:12
Speaker 3: so like the Australian Tax Office are going to have
15:14
Speaker 3: to do a bit more to work out what is
15:16
Speaker 3: and isn't included. Again, it's going to be really unusual
15:20
Speaker 3: for you to be double tax. It's just a bit
15:22
Speaker 3: more work, a bit more paperwork, whereas this makes it
15:25
Speaker 3: really easy. And what happens is, let's pretend it's the
15:28
Speaker 3: UK for a hot second. You'll do your tax over
15:31
Speaker 3: there and you'll have all live the information, and when
15:33
Speaker 3: you do your Australian tax return, you'll basically go, hey,
15:36
Speaker 3: here's the information of my UK income. And then the
15:39
Speaker 3: Australian Government's going to go, oh, but beck, did you
15:41
Speaker 3: earn anything in Australia And you'll go no, no, no, haven't
15:44
Speaker 3: even been home. So you'd put a big zero on
15:46
Speaker 3: it any other information not submit it. They just want
15:50
Speaker 3: to know that you're checking in on an annual basis.
15:52
Speaker 3: They want to track what you're up to and what
15:54
Speaker 3: you're earning internationally, and just to be across it, they're
15:57
Speaker 3: not trying to double tax you.
15:58
Speaker 1: I promise that's very good to know. Yeah, they're not.
16:01
Speaker 3: I mean I can't promise that forever because as you know,
16:06
Speaker 3: the tax system doesn't seem that fair sometimes, but that's
16:09
Speaker 3: not the episode for this Sure, it's a conversation.
16:12
Speaker 1: It's a conversation for another day.
16:13
Speaker 3: Yeah, in the bier garden of a pub. So how
16:15
Speaker 3: do you actually sort out your taxes while you're away?
16:18
Speaker 1: So it's very easy, I promise.
16:20
Speaker 3: So make sure you have your MyGov account set up
16:23
Speaker 3: before you leave, and a lot of us might already
16:25
Speaker 3: have that. Make sure it's linked to the ATO, I say,
16:28
Speaker 3: before you leave, just because sorting things when you're in
16:31
Speaker 3: another country sucks. Having to call the Australian Taxation Office
16:35
Speaker 3: and trying to get things all sorted and dumb all
16:37
Speaker 3: you're away not a vibe.
16:39
Speaker 1: So like, just set it up before you go so
16:40
Speaker 1: you don't have to stress later.
16:43
Speaker 3: Then you'll be able to manage your finances and just
16:45
Speaker 3: stay on top of what you need to do for
16:46
Speaker 3: your tax return, and you can also manage stuff like
16:49
Speaker 3: SUPER through there as well as you know, other different tax.
16:52
Speaker 1: Bits and pieces.
16:54
Speaker 3: The thing with Super as well while you're away. Let's
16:57
Speaker 3: get to that in hot second, actually, because I know
16:58
Speaker 3: you're gonna ask, but it's very important that you're across
17:02
Speaker 3: your SUPER well, you're away, and of course you could
17:04
Speaker 3: always get an accountant to help you. If it's a
17:06
Speaker 3: little bit too daunting, you can see a normal accountant
17:10
Speaker 3: who should be able to do it relatively quickly. If
17:12
Speaker 3: you don't have a dual income and there's nothing too
17:15
Speaker 3: complex about your situation. But if your situation is a
17:18
Speaker 3: little bit complex, or you're a super high income earner overseas,
17:22
Speaker 3: what I'd be doing is going and seeing what's called
17:25
Speaker 3: an expat accountant, which is someone who specializes in Australian
17:30
Speaker 3: residents who live overseas, so they're completely across it and
17:33
Speaker 3: will know a little bit more than the average bear accountant.
17:36
Speaker 3: In saying that your average accountant should be able to
17:39
Speaker 3: get across it, it's not that complex.
17:41
Speaker 1: Or just if you're a super.
17:42
Speaker 3: High income earner or you've got any complexity around it,
17:45
Speaker 3: you might want somebody who is a little bit more,
17:48
Speaker 3: you know, in depth, to make you feel a little
17:50
Speaker 3: bit more secure.
17:51
Speaker 1: Gotcha, Okay, it's funny that you knew.
17:55
Speaker 3: I just knew you were going to ask me about
17:56
Speaker 3: Super because all I do is talk about Super because
17:58
Speaker 3: I am curious about it. So how does it work?
18:01
Speaker 3: Like you're still getting paid Super while you're overseas and
18:05
Speaker 3: lass for some reason you have that campus exchange that
18:08
Speaker 3: we're talking about, in which case you might still get
18:10
Speaker 3: paid super. However, if you move overseas, don't mean to
18:14
Speaker 3: be born but a different country doesn't care about your retirement.
18:18
Speaker 3: If you're going to remain an Australian tax resident, they're
18:20
Speaker 3: going to be like, that's your deal with Australia, Like,
18:22
Speaker 3: we don't have to pay that.
18:23
Speaker 1: Sure.
18:24
Speaker 3: They might be contributing to in the UK a pension
18:27
Speaker 3: for you, or in the US you might have a
18:29
Speaker 3: pension account or something that money is being paid into
18:32
Speaker 3: as a part of your salary package, which is fine. Again,
18:36
Speaker 3: one of the reasons why you might want to have
18:37
Speaker 3: a chat with an accountant because how do you get
18:40
Speaker 3: that money out if you're moving back to Australia in
18:42
Speaker 3: two years beck and you never have plans to live
18:44
Speaker 3: overseas Again, having your retirement fund in the UK doesn't
18:47
Speaker 3: help you that much, doesn't it useless? So what do
18:50
Speaker 3: you do in that circumstances. But your super fund is
18:53
Speaker 3: still going to tick away while you're overseas. It's growing,
18:57
Speaker 3: hopefully because of compound interest, but you're not contribute to it.
19:00
Speaker 3: So we need to be across that you'll still be
19:02
Speaker 3: charged the same fees even if you're not contributing to it.
19:06
Speaker 3: So in Australia, we know that our employers right now
19:09
Speaker 3: have an obligation to pay eleven percent of our earnings
19:12
Speaker 3: into superannuation, which is very sexy.
19:14
Speaker 1: Yeah quite like that.
19:15
Speaker 3: Well, how many of us are actually saving eleven percent
19:17
Speaker 3: of our incomes to invest into our futures?
19:20
Speaker 1: You all of us because of superanuation? I see, Oh
19:23
Speaker 1: you will, that's a truck question.
19:24
Speaker 3: But if you're working for the same company and you're
19:26
Speaker 3: just doing it abroad, as I said before, very likely
19:29
Speaker 3: that you're still being paid SUPER. But if you're not,
19:31
Speaker 3: and you're working for an international employer, then these changes.
19:35
Speaker 3: Because you're employee, they're not obligated to pay you super.
19:38
Speaker 3: You need to be across it.
19:40
Speaker 1: Sure, So what are you going to do?
19:42
Speaker 3: I mean, one year of not paying for Super might
19:45
Speaker 3: not sound like a lot to you personally right now,
19:47
Speaker 3: and you might go whatever, like I'll deal with it
19:49
Speaker 3: when I get home, But it does compound, Like these
19:52
Speaker 3: are conversations that we have when the maternity conversation comes up,
19:56
Speaker 3: like and my men to just miss a whole year
19:58
Speaker 3: of superranuation, which is ultimately going to impact my retirement,
20:02
Speaker 3: Like if you're investing every year, like let's say it's
20:04
Speaker 3: between five to ten thousand dollars, If you're investing five
20:08
Speaker 3: to ten thousand dollars into your superannuation on an annual basis,
20:12
Speaker 3: that in retirement, if retirement's thirty years off for you,
20:15
Speaker 3: which probably is if you're still planning on moving overseas,
20:18
Speaker 3: because that sounds like young people stuff. That's hundreds of
20:21
Speaker 3: thousands of dollars back right, that you're missing out on
20:24
Speaker 3: in retirement by going, Oh, it doesn't matter too much,
20:27
Speaker 3: But what if you move overseas and then it extends
20:30
Speaker 3: out and it extends out Like I have had ex
20:33
Speaker 3: financial advice clients come to me after returning from leaving
20:36
Speaker 3: in the UK for twelve years. They have not paid
20:40
Speaker 3: any super. Their super's basically been eaten away because they
20:43
Speaker 3: left it. Like let's say twenty four there were babies.
20:46
Speaker 3: They didn't have a whole heap in super to begin with,
20:48
Speaker 3: but it's been eaten away by not you know, paying
20:50
Speaker 3: attention to it. They might have had multiple super phones
20:52
Speaker 3: when they left. Fees have eaten it. Fees not sure
20:56
Speaker 3: their premiums exactly. Like everything just compounds and adds up.
21:00
Speaker 3: But I just think it's so important to be across it,
21:03
Speaker 3: and if you're moving overseas, maybe still contributing to SUPE
21:07
Speaker 3: should be part of your financial plan. Even if it's
21:10
Speaker 3: not the sexiest thing ever. I just think probably a
21:13
Speaker 3: good idea to make sure that financially future you is
21:17
Speaker 3: prepared and well looked after.
21:19
Speaker 1: Future you will thank you, I know.
21:21
Speaker 3: So, Yeah, it's a bit of a downer because you
21:23
Speaker 3: do still have to pay it and it will have
21:25
Speaker 3: to be a post tax contribution obviously, but that's okay,
21:30
Speaker 3: that's okay.
21:31
Speaker 1: I still think it's sexy. Yeah, definitely. If not now,
21:34
Speaker 1: eventually we'll be.
21:35
Speaker 2: Yeah.
21:35
Speaker 1: Now I want to know what happens to our HEX
21:38
Speaker 1: or helped it.
21:39
Speaker 3: Oh so this is a spicy I don't know if
21:41
Speaker 3: it's slicy because historically, if you moved overseas and you
21:43
Speaker 3: weren't earning an Australian income.
21:45
Speaker 1: You didn't have to pay HEX.
21:46
Speaker 3: Sure, so people would like yeat off overseas and be
21:48
Speaker 3: like Yollo, like I don't have to pay for my education,
21:52
Speaker 3: not any more, Satan sadly moving overseas does not mean
21:56
Speaker 3: you get out of paying your HEX. Maybe for the best,
22:00
Speaker 3: I don't know. I like the idea of being to
22:02
Speaker 3: skip the country. It sounds real cool, right you're actually like, oh,
22:04
Speaker 3: skip the country, don't have to pay my nearly on
22:06
Speaker 3: hundred thousand dollars worth of hex.
22:07
Speaker 1: Bag black that is calling my name.
22:11
Speaker 3: Turns out that's not the case, and if I did
22:13
Speaker 3: move to the UK, I would still have to pay it.
22:15
Speaker 3: So long as the income you're making when you're abroad
22:18
Speaker 3: is above the minimum payment threshold, then you actually still
22:22
Speaker 3: need to make repayments on your HEX or helped it
22:24
Speaker 3: as you were if you were home. And this is
22:27
Speaker 3: something that, as I said before the break, I was like,
22:29
Speaker 3: we're going to talk about it. This is something that
22:31
Speaker 3: stings a lot of people who decide to move overseas
22:34
Speaker 3: because they go, whatever, I'll move back in twelve months.
22:37
Speaker 3: They come back in twelve months.
22:38
Speaker 1: Maybe they've dragged their feet a little bit doing their
22:40
Speaker 1: tax return.
22:41
Speaker 3: They get their tax return and they're told that they
22:43
Speaker 3: have to pay eight thousand.
22:44
Speaker 1: Dollars in HEX. You've just come back from an overseas trip.
22:47
Speaker 1: You don't have eight grand. What are you going to
22:50
Speaker 1: do what the hecking that would suck us.
22:53
Speaker 3: So obviously, again, this is for people who are moving
22:55
Speaker 3: overseas long term, not just like a couple of months
22:58
Speaker 3: or a holiday.
22:59
Speaker 1: But I think it's.
23:00
Speaker 3: Important to note it is because Beck, if you talk
23:03
Speaker 3: to your mum, she might go, oh, no, if you
23:05
Speaker 3: ever sees you don't have to pay Hex, Yes you do, Satan.
23:07
Speaker 1: How long ago was it you didn't have to do that?
23:09
Speaker 1: Do we know?
23:10
Speaker 3: Maybe like five or ten years? I can't remember. I
23:12
Speaker 3: obviously don't quote me on that. I haven't looked it up,
23:14
Speaker 3: And to be honest, I haven't looked it up because
23:15
Speaker 3: it's irrelevant because it's not going to steal Starue still stand.
23:19
Speaker 3: It's like when I used to go to financial advice conferences, Beck,
23:23
Speaker 3: and like I was relatively new to the industry, like
23:26
Speaker 3: as you guys know, I'm not exactly like you know,
23:29
Speaker 3: a stoic feature in this industry, and a go people
23:33
Speaker 3: would just talk about what the industry used to be,
23:35
Speaker 3: like like how rogue conferences would be, how you know
23:39
Speaker 3: all these financial institutions used to pay advisors like astronomical
23:43
Speaker 3: bonuses and like give them like flights to like Monoco
23:46
Speaker 3: and stuff while they were there, so that they could
23:48
Speaker 3: impress them so hopefully their product would be used, and like, right,
23:52
Speaker 3: that's now illegal.
23:53
Speaker 1: Right, that's a good reason.
23:54
Speaker 3: But they used to be like, oh, the industry used
23:56
Speaker 3: to be so good, and I'm like, why are you
23:58
Speaker 3: telling me this? Yes? Are you just flexing on something
24:01
Speaker 3: I'll never have? It's good to know that it could
24:04
Speaker 3: have been a lot sweeter than this. You used to
24:06
Speaker 3: take the absolute mickey, and now we have more regulation
24:09
Speaker 3: Royal Commission. But also, older white men used to be
24:14
Speaker 3: the ones that were far more across this than you know,
24:17
Speaker 3: to see their females in the industry. Oh yeah, but
24:20
Speaker 3: it was always very interesting hearing their takes. And I
24:23
Speaker 3: feel like that's the same with you know, oh you
24:25
Speaker 3: used to not have to pay it like okay.
24:28
Speaker 1: Sure who story brose.
24:29
Speaker 3: It doesn't apply anymore, it doesn't. And ignorance is bliss sometimes.
24:33
Speaker 1: Is it?
24:34
Speaker 3: Yeah? Artists always definitely be. My last question to you, yes,
24:39
Speaker 3: is what happens for investments? Can we still invest?
24:42
Speaker 2: Yes? Yes?
24:42
Speaker 3: Yes, yes, So that's actually a really good question, and
24:45
Speaker 3: again is going to depend on how long you're moving
24:47
Speaker 3: overseaseful If you're listening to this going I'm moving to
24:49
Speaker 3: London forever. Well, that's a different situation than I'm moving
24:53
Speaker 3: to London for twelve months, two years, three years. Because
24:56
Speaker 3: if your ultimate intention is to come back to a
25:00
Speaker 3: Australia and base yourself in Australia and retire here, then
25:03
Speaker 3: it would make the most sense to not invest in
25:06
Speaker 3: an international environment because one, there's going to be currency
25:10
Speaker 3: exchange issues that you're going to run into, transfer issues
25:13
Speaker 3: like if it's overseas, like how you're going to manage
25:15
Speaker 3: it when you come home. But also it makes more
25:19
Speaker 3: sense to either invest while you're away in Australia, which
25:24
Speaker 3: you can still do, or you know, put it on
25:26
Speaker 3: hold for a little while while you're overseas and maybe
25:29
Speaker 3: put that money towards you know, living overseas because it's
25:32
Speaker 3: much more expensive than when you're home. So completely up
25:35
Speaker 3: to you. Yes, you can still invest, but I would
25:38
Speaker 3: probably not go and invest in an international market in
25:42
Speaker 3: international currency and like open a whole new share trading
25:44
Speaker 3: platform internationally.
25:46
Speaker 1: If the intention isn't to stay long term. Okay, that
25:49
Speaker 1: makes sense. That's all I've got for you on this
25:51
Speaker 1: topic at this point in time. Though, back, Oh thank you, well,
25:53
Speaker 1: that was fantastic. Actually was it? Yeah? I don't think other.
25:57
Speaker 1: Oh good good the last co to London, so true.
26:01
Speaker 3: Surprise me if you were like, I'm gonna follow suit,
26:04
Speaker 3: I'm not gonna do it too.
26:05
Speaker 1: No, I'm not gonna do it. You're so kind, you
26:07
Speaker 1: are so kind. All right.
26:08
Speaker 3: I think that is Unfortunately all we have time for today.
26:11
Speaker 3: We will see you guys on Friday.
26:13
Speaker 1: Have the best week. Hi, guys.
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