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Old Aug 28th 2009, 9:35 am   #46
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Default Re: 1.93's A$ to the Pound!!!

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Originally Posted by bjohn View Post
Anyone thought that it might be the weak US dollar that's affecting all this?
Ah.....but that doesn't give people a reason to gloat about the so called demise of the motherland.

G
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Old Aug 28th 2009, 9:45 am   #47
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Default Re: 1.93's A$ to the Pound!!!

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Ah.....but that doesn't give people a reason to gloat about the so called demise of the motherland.

G
I'm not sure its a demise. Financial services is the UK's biggest industry and that's taken a battering at the moment. It will come back.

If you graph the $AU to $US and the $AU to £GBP its a very similar progression. Lots of outside influences going on here.
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Old Aug 28th 2009, 11:01 am   #48
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Default Re: 1.93's A$ to the Pound!!!

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Yeah, but you were doing it as a pretend company in the UK. That's not available to everyone* so is not a great comparison. You could compare it to a friend I know who manages to get his tax down to 6%. Again it's not something everyone can do so it's not really comparative.

*I'm sure if everyone manged to scam it then the government would bring in tougher stuff than IR35.
You've just got to push it as far as you can.
Everything I did was legal and above board.
IR35 was a joke - one (of many) of the worst Gordon Brown cluster f**ks and has been largely negated by skillful accounting (maybe accountants are worth something!)
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Old Aug 28th 2009, 11:08 am   #49
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Default Re: 1.93's A$ to the Pound!!!

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You've just got to push it as far as you can.
Everything I did was legal and above board.
IR35 was a joke - one (of many) of the worst Gordon Brown cluster f**ks and has been largely negated by skillful accounting (maybe accountants are worth something!)
Push what? I just highlighting that you can get any result you want if you compare apples and pears.
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Old Aug 28th 2009, 1:23 pm   #50
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Default Re: 1.93's A$ to the Pound!!!

As someone who is moving to Oz next month, I hope we've reached the bottom of the downward curve! Positive thinking.....
http://www.ft.com/cms/s/0/694139b4-9...44feabdc0.html
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Old Aug 28th 2009, 2:33 pm   #51
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Default Re: 1.93's A$ to the Pound!!!

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Originally Posted by chasmw View Post
As someone who is moving to Oz next month, I hope we've reached the bottom of the downward curve! Positive thinking.....
http://www.ft.com/cms/s/0/694139b4-9...44feabdc0.html
I'm with you on the move next month so am also hoping.

One consideration for the UK longer term ....

quantitative easing ... increased inflation ... increased interest rates!????

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Old Aug 28th 2009, 2:59 pm   #52
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Default Re: 1.93's A$ to the Pound!!!

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I agree. The people in the UK have a certain one eyed Scottish idiot to thank for this and his magic money printing press.
Yes it shows the true state the UK economy is in. Thanks Gordon, thanks Tony, its going to take years to repair the damage you've done. Maybe one day the people who voted for NuLabour will wake up and smell the coffee :curse:
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Old Aug 28th 2009, 8:51 pm   #53
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Default Re: 1.93's A$ to the Pound!!!

Does anyone really have any idea where it is is going to end up with so much uncertainty in the current economic climate. Personally, I'm not shifting anything over until it gets to the loftier heights of around 2.5, which means I should be waiting a couple of lifetimes.
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Old Aug 28th 2009, 11:49 pm   #54
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Default Re: 1.93's A$ to the Pound!!!

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Probably quite a few pommies here in Oz doing their sums and thinking about a return to the UK.
I'm moving back early next year. Moved here a couple of years ago and exchanged at $2.50.
Stand to make over 100k pounds by moving back. This combined with the impending next leg down in the UK housing market, makes it too good an opportunity to turn down
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Old Aug 28th 2009, 11:54 pm   #55
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Default Re: 1.93's A$ to the Pound!!!

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Originally Posted by Pommie Granite View Post
I'm moving back early next year. Moved here a couple of years ago and exchanged at $2.50.
Stand to make over 100k pounds by moving back. This combined with the impending next leg down in the UK housing market, makes it too good an opportunity to turn down
Good on ya! Even I have done a few sums and realise how much more house I could get in the UK compared to when I left. ...
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Old Aug 29th 2009, 1:31 am   #56
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Default Re: 1.93's A$ to the Pound!!!

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Originally Posted by MartinLuther View Post
Yeah, but you were doing it as a pretend company in the UK. That's not available to everyone* so is not a great comparison. You could compare it to a friend I know who manages to get his tax down to 6%. Again it's not something everyone can do so it's not really comparative.

*I'm sure if everyone manged to scam it then the government would bring in tougher stuff than IR35.
Well I pay much more tax here too, and I'm just an individual whose sole income happens ro derive from a UK occupational pension and a frozen UK state pension. This month my money came in at $1.92 to the £, so I'm suffering a hefty drop in income over even last year's.

btw I'm here because my wife is an Aussie, not because I had a rose-tinted view of an idyllic country.
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Old Aug 29th 2009, 2:46 am   #57
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Default Re: 1.93's A$ to the Pound!!!

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Well I pay much more tax here too, and I'm just an individual whose sole income happens ro derive from a UK occupational pension and a frozen UK state pension. This month my money came in at $1.92 to the £, so I'm suffering a hefty drop in income over even last year's.

btw I'm here because my wife is an Aussie, not because I had a rose-tinted view of an idyllic country.
I guess pensioners who derive their income from UK schemes are worse off in Aus than in the UK (maybe?). That does not change the reality that overall, Aus has a lower tax take than the UK which was the point I made. I did not at any point assert that all people would pay less tax here than there. I'm not sure what point you, Grayling and Amazulu are trying to make. Are you trying to tell me that because you as individuals have managed to get yourselves into a situation where you pay more tax here than there, then Aus, as a whole, takes more tax than the UK? If so then I'm not convinced.

btw: I'm here because I love living here not because I have a rose-tinted view of an idyllic country. I loved living in the UK too and didn't have a rose-tinted view of it being an idyllic country either.

Last edited by MartinLuther; Aug 29th 2009 at 2:49 am.
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Old Aug 29th 2009, 4:12 am   #58
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Default Re: 1.93's A$ to the Pound!!!

Australia
$1 – $6,000 Nil
$6,001 – $34,000 15c for each $1 over $6,000
$34,001 – $80,000 $4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000 $18,000 plus 40c for each $1 over $80,000
$180,001 and over $58,000 plus 45c for each $1 over $180,000

UK
Starting rate: 10% £0-£2,230
Basic rate: 22% £2,231-£34,600
Higher rate: 40% Over £34, 600

Again, exchange rates are effecting things, but for anybody really interested these are the current basic tax rates. On the whole I would say that looks like basic tax rates are higher in Australia, with a 30c in the dollar kicking in at what currently works out at about £17,000.
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Old Aug 29th 2009, 4:26 am   #59
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Default Re: 1.93's A$ to the Pound!!!

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Originally Posted by iamthecreaturefromuranus View Post
Australia
$1 – $6,000 Nil
$6,001 – $34,000 15c for each $1 over $6,000
$34,001 – $80,000 $4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000 $18,000 plus 40c for each $1 over $80,000
$180,001 and over $58,000 plus 45c for each $1 over $180,000

UK
Starting rate: 10% £0-£2,230
Basic rate: 22% £2,231-£34,600
Higher rate: 40% Over £34, 600

Again, exchange rates are effecting things, but for anybody really interested these are the current basic tax rates. On the whole I would say that looks like basic tax rates are higher in Australia, with a 30c in the dollar kicking in at what currently works out at about £17,000.
You've been sucked in by the advertised rates. Now add 11% to the lower UK figures and 1.5% to the Aus lower figures. Add 1% to the higher UK figures and 2.5% to the higher Aus figures. Add in also LITO which means in Aus that you don't pay any tax if your earnings are below $14k and a different picture starts to emerge.

I used to have a spread sheet which gave a more realistic PAYE vs PAYG picture. I might update it later and see how it looks nowadays. I think it takes people by surprise when they realise they'e been suckered by the advertised rates. Others go into denial - but that's a different story.

Last edited by MartinLuther; Aug 29th 2009 at 5:42 am.
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Old Aug 29th 2009, 5:35 am   #60
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Default Re: 1.93's A$ to the Pound!!!

Okay here we go. I've updated the sheet with the following info.

Aus rates (up to)
$6000 - 0%
$34000 - 15%
$80000 - 30%
$180000 - 40%
above $180k - 45%

LITO fall off $30k - $60k

Medicare Levy Surcharge $100k

UK rates (up to)
£6475 - 0%
£43875 - 20%
above £43875 - 40%

NI lower = £110pw
NI upper = £844pw

Lower % = 11%
Upper % = 1%

Results
Code:
Inc (£)	Inc ($)	UK Tax	UK %	AU Tax	AU %	Diff(£)	Diff($)
10,000	20,000	1,219	12.2%	1,200	6.0%	-619	-1,547
15,000	30,000	2,819	18.8%	2,850	9.5%	-1,394	-3,484
20,000	40,000	4,419	22.1%	6,200	15.5%	-1,319	-3,297
25,000	50,000	6,019	24.1%	8,950	17.9%	-1,544	-3,859
30,000	60,000	7,619	25.4%	12,900	21.5%	-1,169	-2,922
40,000	80,000	10,819	27.0%	19,200	24.0%	-1,219	-3,047
50,000	100,000	15,200	30.4%	27,500	27.5%	-1,450	-3,626
60,000	120,000	19,300	32.2%	37,000	30.8%	-800	-2,001
70,000	140,000	23,400	33.4%	45,500	32.5%	-650	-1,626
80,000	160,000	27,500	34.4%	54,000	33.8%	-500	-1,251
90,000	180,000	31,600	35.1%	62,500	34.7%	-350	-876
95,392	190,784	33,811	35.4%	67,622	35.4%	0	0
100,000	200,000	35,700	35.7%	72,000	36.0%	300	749
Notes:
This is a simple comparison of tax on income. It does not take into account deductable items or tax offsets in either country (except Oz low income offset).
Medicare included, including the high-earners medicare levy ($100,000 threshold)
UK tax would be lower if income is from savings
Calculations do not include any consideration of CGT which has complex tax rules in both countries.
I have not included employers contributions to super/pensions (currently 9% in Oz and 12.8% in UK)
Exchange Rate used = 2.00

So as a result of all that it looks like Aus income tax does not exceed UK income tax until you get to £95k/$190k. One consolation for higher earners in Aus is that most of the employers contribution is going into their future pocket whereas, in the UK, only a small percentage of the employers contributions would go into their future pocket. I reckon you'd still be better off.

Not sure about the pensioner one. Do they not pay NI in the UK? (I can't remember.) This would give then a huge tax advantage. I know they have higher tax free limits and possible access to a 10% band which would lower their UK tax take.
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