So my partner and I are thinking about moving to Denver, mainly to explore and live somewhere different. Current work is sponsoring an L1B visa, and my wife needs to find a job when we get there.
I was wondering if anyone has any experience leaving Australia and recommendations or advice on managing following,
- Superfund is currently with RESTSuper
- Mortgage is currently with NAB
Any other helpful tips on moving to the US from Australia are greatly appreciated.
Thanks in advance
Thank you for the tips. It sounds like you have been through this situation before. If you have any recommendations on any good accountant & rental agent, please let me know. Thanks heaps
Sell the assets tax-free and convert the fiat from the sale to hard liquid assets. This allows people to carry their assets/wealth with them wherever they go.
Tx the pension from the Australian retirement fund to a Roth IRA that allows for self-management and trading of stonks, commodities and digital assets.
Speak to a US-based accountant that specialises in asset protection.
hummm … haven't thought about what you suggested. I appreciate your tips thanks you
I agree. Sell in the bubble and pocket the difference.
You might be better off asking in an Australian expats forum or something else specifically for Aussies living in the USA. e.g. this blog maybe? https://brightlightsofamerica.com/ (and the finance section: https://brightlightsofamerica.com/finance/ )
Thank you for sharing that link, super helpful
You will likely remain resident for tax purposes, if your a if you do u can rent ur place for upto 6 years, and keep as ppor and thus have no cgt issues, but best speak to an accountant about usa / aus tax treatments.
other than that keep enough $ in your bank and let an agent handle it, work out a way to pump usd over to aus quickly / cheaply so you can top up hassle free.
superannuation will just idle, maybe go down slowly with fees if your balance < 50k or so, if not it should self manage. Maybe look at ditching the life insurance as maybe void out of oz anyway?
You will likely remain resident for tax purposes
Why though?
Under which test do you think OP will be an Australian tax resident?
@deme: if its their choice its up to them.
they need to see an accountant or have a good understanding to make the choice.
but becoming non resident means that house is no longer cgt free.
if its their choice its up to them.
What? You said they will be a tax resident and I asked why.
You don't get to chose if you are a tax resident or not.
but becoming non resident means that house is no longer cgt free.
Do you lose your 6 years?
@deme: Domicile test
You're an Australian resident if your domicile (the place that is your permanent home) is in Australia, unless we are satisfied that your permanent place of abode is outside Australia.
someone can chose to say they domicile overseas and debate it with the ATO if they wish to become non tax resident if they goto a country with no tax treaty with australia and thus to prevent double taxation. However they can also say to them the domicile in Australia even if they have no intention of returning to achieve the opposite.
people that goto dubai and earn tax free income are meant to pay tax on that worldwide income in australia if the ATO claims they domicile is in Australia. sure you dont have to declare it but the ATO may challenge you in court if you get caught.
thats it as far as i understand, and I also beleive you can no longer claim any place your ppor if you leave the country and become non resident for tax purposes, and you may also trigger other CGT events.
I think in some situations you can make the choice to suit your own need, but I don't know
No.
someone can chose to say they domicile overseas
No.
Domicile test
You're an Australian resident if your domicile (the place that is your permanent home) is in Australia, unless we are satisfied that your permanent place of abode is outside Australia.
Yes.
become non resident for tax purposes, and you may also trigger other CGT events.
Yes.
@deme: "someone can chose to say they domicile overseas" No
so you saying if was born in nepal and came here for 2 years, worked as a chef, bought some shares, and then went back home, i have no right in anyway to tell the ato i domicile overseas, and will be a non-resident only delcaring my shares. And thus until i die at the ripe old age of 96 I must declare my nepalese income in australia as they deem me a resident for life.
but on the otherhand my shares went up 700k and thus its more advtagous for me to keep myself as back in nepal i will never work, and as a resident i do not trigger cgt.
interesting how every foreigner must handle this rule you say
@Donaldhump: You cannot choose.
The tests for tax residencies can be found: https://www.ato.gov.au/Calculators-and-tools/Work-out-your-t…
It is possible to be domiciled overseas and still be an Australian Tax resident.
Make sure you factor in all the costs - rent, health insurance, furniture, food, entertainment, car purchase/lease costs, phone, internet, plus sales tax etc
It can add up pretty quickly. Also factor in 401k contributions (or lack of).
Your employer may offer health insurance - but it may need to be topped up.
Speaking from experience having lived in the very expensive San Francisco for 3 years in my early 20s on what at the time I thought was a reasonable salary for a big tech firm - it didn't go far! I saved cash, but not as much as I was expecting. That being said I had a great time and was able to take my job back here to Aus.
Watch out for the US taxation laws. You might be required to pay tax on US on your earnings in your Australian super as well on your rental income.
I've worked overseas whilst having a mortgage in Aust on an Aust property.
I'm assuming you will rent out your property, and will be paid your salary in USA in USD? If so, you need to factor in a few things:
- You need a really reliable agent to manage the rental; that will come at a cost (which reduces your income from the rental)
- You will need to manage your Aust bank balance to ensure you always have enough to cover mortgage payments; this could include funds transfer costs and USD/AUD exchange rate variances and associated risks
- There may be tax implications for the rental property for a non-resident? Make sure you get a good accountant
- You may be keeping some belongings in storage in Aust? Factor in that cost and make sure it is insured