dave_m13

Hi All

I have been reading numerous threads on here for sometime, I have some questions if I may.

I work in UK as a specialist IT consultant, would probably earn around 40K plus car allowance.

I have already been intouch with a couple of companies in Oz and seem interested in my skills.

I have then seen a position on seek.com.au that is looking for someone with my skills, I have already spoken to them and they are interested in putting my CV across.

Below is what they are offering

Role could be based in Melbourne, Sydney or Brisbane and there would be travel involved to these locations you are not based.

Salary: $80,000

Super: $7,200 (Superannuation , Goes towards your retirement plan)

Bonus = up to $5,000

Mobile = approx $2,000

Laptop

Relocation= $5,000 (Cover flights/ initial accommodation)

Health Insurance = You are under reciprocal agreement with being a British citizen http://www.medicareaustralia.gov.au/ , Also my client pays for Private Health Care

Visa Costs..

Investment in Training

Also you will get a living away from home allowance (Which is only offered to 457 Visa holders) depending on your rent etc this could save about $800 in tax a month

So approx $100-115K Total package

This is all fine to me apart from the salary and relocation costs. I have been doing some research on similar positions and this does seem to be low salary compared to others, especially with possibility of interstate/asia pacific travel.

Do you think we could live on 80K in Melbourne, we have 3 kids, does anyone know whether you have to pay schooling fees in Victoria. I know you do in NSW on a 457 visa.

We are not desperate to move but I think that if it benefits us we would do it, as long as we are not too much out of pocket.

Both wife and I have already done the 1 year working visa, so have a rough idea what it maybe like I know its different but I did work quite a bit whilst there.

If anyone could give suggestions or advise, would be appreciated.

Thanks
Dave

dave_m13

I am going to bump this thread, the agency will call tonight UK time, to ask what my thoughts are. If anyone could let me know their opinions/advise, will be appreciated

Funky Monkey

Hi Dave welcom to B.E.

The salary they are offering you seems the same as you get now give or take a bit so I think it is up to you if you want the adventure. You should be able to live on that salary but you will have to be a little careful. People will have always an opinion on here regarding living costs it depends what car you want to drive, how much morgtage you have e.t.c the list can be endless.

We are a family of 4 and we rent a place in Perth. I am the only earner and would expect to earn around $75,000. I need all of this and can live on this but there is not much left over. I am not in debt and we do not really go out. I think the difference here is you can live cheaper if you want because a lot of things are cheap to do where as in the U.K we always seemed to be paying out for entertainment.

Hope this helps, James.

dave_m13

Thanks for the information James, yes appreciated and does help, I believe rent is slightly more in Melbourne, compared to other cities, apart from Sydney. I was probably looking at 500 p/w rent for an area close to where the work is.

Do you have 2 cars or just the 1. We have 2 here, due to me travelling about. I think the company have a leasing option, so that may help.

I will be the only earner as well, just concerned that will not have much spare but as you say there seems to be more to do without it costing. I think that we really need to work out living cost and see whether it would be an option, we would like the adventure but not if we cannot afford to do anything.

Do you get the LAFHA?

Thanks again
Dave

Funky Monkey

Hi again Dave not sure what the LAFHA is probably being a bit thick.

I am in construction so have a van and a car. I am self employed so get no benefits. Ny wife is looking for a little job of around 15 hours per week and a lot of wives here seem to " have" to get a part time job (she did not work in the U.K).
We are worse off here which I sort of knew because of the slowdown and I don't see the point of being here long term and struggling what is the point (Imo), I have not been here long and hope things will get better as I get more established.
BTW we are also paying $500 dollars pw which is probably not helping

Hope some others give their take, James

Thanks again
Dave[/QUOTE]

Kooky.

Dave, can you give us a bit more information about the area you specialise in? It does seem low. (My husband is a senior pre-sales consultant.)

Have you looked up the Hays Salary Survey?

http://www.hays.com.au/salary/pdfs08...Technology.pdf

Your relocation allowance seems low too but if you want to move, it's up to you to decide if it's worth doing (I can give you some more ideas for a full relo package if you want).

We're on a 457 and get LAFHA.

Others may disagree (it's always a contentious issue ) but IMHO you're cutting it very fine for a family of 5, probably in Melbourne and definitely in Sydney.

dave_m13

Hi

Thanks for the information James.

I specialise in Service Desk Software/ITIL, Service Management, I have checked Hays, really the only one that maybe similar could be an ERP Consultant and this could pay between 100 - 140, then its not exactly the same

Yes I am not entirely sure on relocation would only just pay for flights, would not have any extra money to bring belongings over. Yes if you would not mind providing me ideas for full relocation package, appreciated.

Thanks
Dave

Kooky.

Dave I will PM you my MSN and if you want to add me (soonish, nearly bed time here!) I will pass you over to my husband for a chat.

Kooky.

Also details of our relo package here

http://britishexpats.com/forum/showt...ge#post6367101

but bear in mind this was an intra-co transfer so pretty comprehensive.

jayr

Try the attached spreadsheet out.

In the spreadsheet change the yellow cells. The original gross salary amount is salary inclusive of super, your offer is $80k which appears to be inclusive of super of 9% (you stated $7200 of super).

Put 9% in the super cell.


In the LAFHA box to the right enter your expected annual rent and the number of adults (aged 12 or over) and children. This bit calculates the TAX EXEMPT food and drink allowance ($42/adult/week, $21/child/week). The total LAFHA amount flows back intot he rest of the spreadsheet.

On these figures, your $80k WITHOUT LAFHA is a monthly net of $4605.

Monthly take home with LAFHA is $5496 (assumes 2 adults no children).

Note, a $5496 take home is about equivalent to a $98,500 annual without LAFHA; so LAFHA is worth about $18k of GROSS income.


Convert these net amounts back to UK pounds to see how better or worse off you will be.

dave_m13

Thanks this is very good information, I do not appear to see the spreadsheet though.

The way you have explained LAFHA is really good, cheers. I probably also need to find out whether Super included or excluded from 80k

So if this is correct after rent would have $3358

jayr

Sorry, been editing after updating the spreadhseet to account for the food and drink component of LAFHA. How many adults (12 or over) and kids (under 12) are in your family?

dave_m13

2 adults and 3 children under 12

jayr

The way you described the offer of $80k with super of $7.2k implies that the $80k is INCLUSIVE of super. Standard super is 9%. This is something YOU pay out of YOUR (gross) salary.

Some employers (though rare) contribute an additional amount.

Note, because LAFHA comes off your salary FIRST, you actually pay the 9% super on the GROSS amount AFTER LAFHA is taken off. This is how my spreadsheet treats Super.

The spreadsheet calcs your TAX FREE LAFHA amount and then calculates your tax paid. It then adds back the LAFHA as a tax free (i.e. net) amount at the end.

And yes, based on my ORIGINAL post (which I have now edited to include food and drink component) your net, after you pay your rent, would be $3358.

To CLAIM LAFHA you give your employer your rent statement. THey perform the calcs as in the spreadsheet then pay you your rent emount free of tax into your net pay. You pay your landlord as normal out of your received net pay.

dave_m13

Just been advised Super is on top of 80k