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THE CITY OF
Lights AUSTRA
LIA’S
weirdests festival t bizarre The mos stivals Aussie fe
Leaving the UK to move abroad?
Don’t forget to tie up those loose ends.
Expat profile Carly’s story
PLUS
Migration news, Expert advice
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EDITORIAL Editor: Ian Armitage Writers: Colin Chinery Chris Farnell BUSINESS General Manager: Andy Ellis Research Manager: Andy Williams Researchers: Nicholas Davies Elle Watson Dave Hodgson Chris Bolderstone Stuart Shirra Sales Administrator: Abby Nightingale
Melbourne: The City of Lights
ACCOUNTS Financial Controller: Nick Crampton Accounts: Margaret Roberts, Alexandra Buchlakova PRODUCTION & DESIGN Magazine Design: Optic Juice Production Manager: Jon Cooke Pictures: Getty Images, Thinkstock News: AAP, SAPA, NZPA DIGITAL & IT Head of digital marketing and development : Syed Ahmad TNT PUBLISHING CEO: Kevin Ellis Chairman: Ken Hurst Publisher: TNT Publishing Ltd Australia and New Zealand Outlook, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Magazine, 10 Greycoat Place, London. SW1P 1SB Tntmagazine.com ENQUIRIES Tel: +44 (0)1603 3432267 Fax: +44 (0)1603 283602 Email: ian.armitage@tntmagazine.com
Welcome to the new digital edition of Australia and New Zealand Outlook, a magazine ďŹ lled with informative articles for travellers and migrants, as well as packed with expert advice on moving Down Under, real-life stories, working, living and travelling. Around 200,000 Brits leave these shores every year to start a new life overseas and many move Down Under. Australia regularly tops the polls when it comes to which countries most Britons would choose to emigrate to and its desirability stems from so many factors - it is a country where the quality of life is very high, the employment prospects are plentiful, the education available is world class and the healthcare facilities are very good. This month we look at the opportunities for Brits in Australia and New Zealand, visa changes, visit Melbourne, talk tax, and expat Carly shares her experiences. Australian and New Zealand Outlook is available every month as a digital magazine and every quarter as a printed edition, distributed at selected outlets.
SUBSCRIPTIONS Call: +44 (0)1603 343267 Email: subscriptions@anzoutlook.com
The journey starts here!
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Ian Armitage Editor AUSTRALIAANDNEWZEALAND
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CONTENTS
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24 PAGE
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28
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CONTEN
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06 News 12 Migration Update 16 Ask the expert
Seamus Murphy, Senior UK Tax Manager, and Nick Petrov, UK Tax Consultant of Taxback.com answer your questions
18 Tax... doesn't have to be taxing
Leaving the UK to move abroad? Don’t forget to tie up those loose ends
22 Expat profile: Carly's story
The way things have been in the UK you couldn’t be blamed for wanting to see whether pastures were greener elsewhere - Carly Derisz decided to do just that
24 Traveller's guide: Melbourne Chris Farnell visits the City of Lights
28 Australia's weirdest events!
If you’re born and raised in a country where people celebrate Christmas with a beach barbecue, it’s understandable that you might turn out a little... eccentric
32 What's on...
Our guide to the unmissable events, holidays and celebrations in Australia and New Zealand this month
44 Next month AUSTRALIAANDNEWZEALAND
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NEWS Bomb hoax suspect arrested in US A man has been arrested in the United States after a collar containing a hoax bomb was attached around the neck of 18-yearold Madeleine Pulver in Sydney. The 50-year-old Australian businessman – named by the FBI as Paul “Doug” Peters has been arrested in Louisville, Kentucky, in an operation involving Australian police and the FBI. He was arrested by detectives from the Robbery and Serious Crime Squad’s Strike Force Haddon at about 5.45am AEST on August 16, ABC news reported. Police will ask a US court to extradite him to Australia, and plan to charge him with aggravated breaking and entering and kidnapping.
Miss Pulver spent 10 hours with a fake bomb attached to her neck after a balaclava-clad intruder broke into the family’s Mosman mansion and strapped it to her on August 3. Technicians from the NSW Police Bomb Squad worked overnight for 10 hours to remove the device from the 18-year-old. The device was found not to contain any explosives. Her dad, Bill Pulver, is the chief executive of Appen Butler Hill, a linguistic software company that specialises in voice recognition software. No one else is being sought in connection to the crime.
S N I O J L L E KEW RNE VICTORY MELBOU
ational, who has The Australia intern country and scored won 54 caps for his 300 top-flight 16 goals, played over matches in England. n of Sydney in 1995 He left his hometow s in England with Leed as a teenager to play signed a three verpool. The 32-year-old has before moving to Li nal three er aft m tea Champions League fi ue ag the Le in He featured deal with the A. so er to do th Galatasaray. the only Australian ev seasons in Turkey wi in in 2005, y pla to ion ce that Harry un bit no am an my e are delighted to “W “It has always been ve our club,” Victory d I am pleased to ha has chosen to play for my home country an rne ou elb Pietro said. ying for M chairman Anthony Di that opportunity by pla d. Victory,” Kewell sai
Liverpool Former Leeds and ewell will play midfielder Harry K Australia top-flight football in ter joining for the first time af Melbourne Victory. -year
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ALL THE LATEST NEWS FROM AUSTRALIA AND NEW ZEALAND
Victoria man loses legs in homemade explosion Two men are fighting for their lives in Melbourne hospitals after an improvised explosive device blew up in their backyard. One man lost both legs and another suffered lifethreatening burns when a homemade explosive device blew up at the rural home. The two men were mixing chemicals in a container in front of a group of neighbours at the Cannons Creek property,
southeast of Melbourne, when it exploded shortly after 11pm (AEST) on August 21. Both are now fighting for their lives in Melbourne hospitals. A paramedic on scene, Ben Meadley, likened the injuries to those typically found in a war zone, saying a 24-year-old man had “complete or near amputation” of his legs and a hand. “One (patient) had severe airway burns and
the second patient suffered severe blast-type injuries, the type of injury you’d more liken to what you’d see in a war situation rather than in outer suburban Melbourne,” he said. It’s believed the accident was essentially fun gone wrong – with the men mixing the chemicals to make an improvised explosive device, possibly a rocket. Neighbours said the explosion was felt in nearby homes.
Man who killed father with axe jailed A Melbourne man was killed by his son using a tomahawk he kept by his bed to protect himself from the younger man. Zlatko “Boris” Svetina, who was jailed for 11 years for defensive homicide, turned the power off before entering his father Tomislav Svetina’s home late at night. Svetina easily prised the tomahawk from his frail 74-year-old father’s grip and used it against him in a brutal fashion. He struck his father about 10 times to
the head and face, including at least three times while he lay or crouched on the floor, then left him to die. Mr Svetina blamed his son for his marriage breaking up and for him being jailed for assaulting his wife, Zlatko’s mother. Justice Geoffrey Nettle said it was unclear whether Mr Svetina ambushed his son or whether the son took his father by surprise, but it was clear that the son was able to take the tomahawk from his father. In June, a jury found Zlatko Svetina, 54, guilty of defensive homicide.
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NEWS Foster's rejects new SABMiller bid Foster’s Group has again rejected a hostile takeover bid by UK-based SABMiller plc, saying once more that the offer price significantly undervalues the company.
“The board of Foster’s, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer,” Foster’s said in a statement on August 18. Foster’s said the offer also was diminished by conditions attached, including 90 percent acceptance by Foster’s shareholders. The offer also would be reduced by the
value of any dividends that the Foster’s board might pay during the offer period. The takeover also requires approval from Australia’s Foreign Investment Review Board and the competition watchdog, the Australian Competition and Consumer Commission. “Foster’s shareholders are advised to take no action and ignore all documents and communications from SABMiller in relation to its proposed offer,” the Foster’s board said. The bid is similar to an earlier proposal put to Foster’s by SABMiller in June, which Foster’s also rejected as undervaluing the group.
REBELS SWEEP INTO
LIBYAN CAPITA L
The momentum ag ainst the Gaddafi regime has reache d a tipping point, with Libyan rebels sweeping into capital Tripoli on A ugust 21.
he should face the international charg es that are against him,” Au stralian Prime Min ister Julia Gillard said. “We will as a natio n continue to suppor As the rebels swept int t the people of Liby o city’s heart, crowds a on what we want to se took to the streets to e as a journey to pe celebrate what they saw ace as the and democracy.” end of Muammar Ga ddafi’s four decades of po we r. A government fightba Rebels waving oppo ck was reported as sition flags and firin g dawn broke on Augu into the air drove int st 22. o Green Square, a sy mbolic Tanks emerged from showcase the govern Gaddafi’s stronghold ment which had un til in the recently been used centre of the Libyan for mass demonstra capital and were tions by shelling the area, Al pro-Gaddafi suppor Jazeera television rep ters. Rebels immedia orted. tely Heavy fighting was began calling it Mart taking place around yrs Square. Gaddafi’s compound According to reports, . two of Gaddafi’s A rebel spokesman sons were captured says pro-Gaddafi fo during the siege, bu rces t the still control 15-20 pe whereabouts of Gadd rcent of Tripoli. afi himself were un kn ow n. The United States ha “We continue to ca s recognised the ll on Colonel Gadd afi to Transitional Na get out of the way tional Council as the and of course we be legitimate lieve governing authority in Libya. 08
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ALL THE LATEST NEWS FROM AUSTRALIA AND NEW ZEALAND
F E I R B N I S NEW ent and dangerous” Victims of a “persist red and embraced pedophile have chee ey court after each other in a Sydn tenced to at least their abuser was sen drew Dean 20 years in prison. An icting pain” McIntosh “enjoyed infl tally raped on the four boys he bru ee decades, and assaulted over thr nane. And he said Judge Michael Fin “intention at all” of appeared to have no f. rehabilitating himsel a house where family used cousins of the Ibrahim g the innocent to live, nearly woundin one beyond people inside, have “g
Gunmen who shot at
ur bullets were fired stupid”, police say. Fo , eet, Merrylands West at a home in Eddy Str on out 9.35pm (AEST) in Sydney’s west, ab August 21.
cision to axe equence of a strong 1000 jobs is the cons d a patchwork Australian dollar an easurer Wayne economy, federal Tr maker announced Swan says. The steels as a part of a its decision to axe job ting company after repor restructuring of the st gu Au year loss on a A$1.05 billion full s an “awful day” wa 22. Mr Swan said it a ected in the Illawarr for those workers aff . region and in Victoria
BlueScope Steel’s de
Aussie experts may save Edinburgh Festival Australian expertise will be called on to help host the 2012 Edinburgh Festival as local knowhow is drained by the coinciding Olympic Games, a London newspaper has reported. The world’s largest arts and cultural festival will clash directly with the Games in July and August next year, leaving a severe shortage of technicians and road crew with experience in fields such as sound, lighting and staging, The Guardian newspaper said. The festivals are likely to need to hire staff
from other parts of Europe, Scandinavia, even Australia, theatre director Anthony Alderson told the paper. “Building an event the size of the Olympics is takes a hell of a lot of people. Who’s going to come to build the Edinburgh Festival next year?” Alderson, from one of the festival’s big four venues, the Pleasance theatre, said. Organisers of Britain’s popular Glastonbury festival have already cancelled their June 2012 event because of the Games and its associated demands.
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NEWS
UK RIOTS: FOURTH NIGHT OF
VIOLENCE Violence erupted again August 9 as England faced a fourth night of looting, rioting and other criminality, with trouble spreading to several cities, although the capital London stayed quiet.
There were reports of looting and unrest in Manchester, Salford, Liverpool, Nottingham and Birmingham with shops being set alight. In Birmingham, three men died when they were hit by a car; local media claims they were protecting their neighbourhood. Police have lunched a murder inquiry. So far, some 108 people have been arrested following the trouble in Manchester and Salford, where “copycat” youths clashed
with the police as they looted shops and set fire to cars and buildings. In the West Midlands, 109 have been arrested and 23 charged following scenes of disorder in Birmingham, Wolverhampton and West Bromwich. In Nottingham, Canning Circus police station was firebombed. In Liverpool, Merseyside Police arrested 50 people in relation to violence in the city. London stayed relatively quiet after Downing Street increased level of policing.
The government said it would remain in place “as long as necessary” to prevent a repeat of the violent scenes that shocked the world on Monday. It said while there was “no complacency,” police tactics in London had “clearly worked”. A massive clean-up operation is under way in areas affected by the riots across England. Twitter and Facebook users are harnessing the power of social networking to co-ordinate operations.
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migration update Skilled migration reform supporting Australia's growing economy - Minister Australia’s migration programme continues to “deliver its economic and social aims for a healthy economy”, the Minister for Immigration and Citizenship, Chris Bowen MP, has announced. Releasing the final outcomes for the 2010–11 Migration Programme, Bowen said the Gillard Government’s ongoing skilled migration reforms were ensuring critical skills needs in high-demand sectors and regional areas were being addressed. ‘The government is supporting our growing economy and meeting family reunion objectives, while ensuring we meet the skill shortages in areas of high demand,’ Bowen said. The total outcome for the 2010–11 Migration Programme was 168,685 places against a planning level of 168 700. The 2010–11 skill stream outcome of 113,725 places accounted for 67.4 percent of the total Migration Programme. Bowen said the Labor Government had more than doubled the number of places specifically set aside for regional Australia since it took office. ‘In 2011–12 the government is going even further with 16,000 places for the Regional Sponsored Migration Scheme – a 60 percent increase on last year’s levels,’ he said.
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There was also an increase to the top priority employersponsored programme to 39 percent of the skill stream, part of the government’s policy to directly target skills shortages through a more demanddriven approach. ‘Skilled migrants deliver significant benefits to the Australian economy as their employment contributes to economic growth and their relative youth offsets some of the impacts of the ageing labour force,’ Bowen said. China was Australia’s largest source of migrants with a total 29,547 places or 17.5 percent of the total migration program in 2010–11. The United Kingdom and India followed, with 23,931 and 21,768, respectively. Bowen added that the government’s new skilled migrant selection register, SkillSelect, would be introduced from 1 July 2012. ‘SkillSelect will ensure that visas are allocated to the best and brightest skilled migrants so that the Migration Program can better meet the needs of Australian businesses,’ he said. The Migration Programme Outcomes 2010–11 report can be found on the Department of Immigration and Citizenship website.
UK unemployment hits 2.49 million The total number of unemployed people in the UK has reached 2.49 million (7.9 percent of the population), rising by 38,000 in the three months to June, according to official figures from the Office for National Statistics (ONS).
The number of people unemployed for up to six months increased by 66,000 over the quarter to reach 1.23 million. This is the largest quarterly increase since the three months to June 2009, ONS said. The number of unemployed men increased by 18,000 on the quarter to
reach 1.45 million, while the number of unemployed women increased by 21,000 on the quarter to reach 1.05 million, the highest figure since the three months to May 1988. The number of people claiming Jobseeker’s Allowance was 1.56 million in July, up 37,100 on June.
Push for new three-year working visa The Australian states and territories want a new three-year working visa for international graduates in areas of skill shortage, according to Queensland Premier Anna Bligh. She said she put the issue on the agenda at a recent Council of Australian Governments (COAG) meeting in Canberra and was successful in getting the support from the states and territories. Bligh said the move would help to stop the decline in international student numbers and would also prepare the nation for the next mining boom. “Australia is on the cusp of a resources boom and we are facing a looming skills crisis,” she said in a statement. “We shouldn’t be discouraging young, enthusiastic workers who are keen to fill these roles.” The resources sector alone is expected to
generate 38,000 jobs in the next few years, Bligh explained. The Australian Council for Private Education and Training (ACPET) has welcomed the initiative. Chief executive Claire Field said international education is one of Australia’s great export success stories but it is under threat because the student visa system is out of step with the rest of the world. “A thriving, effective, international education sector, with close links to industry and supported by a student visa system that is efficient and effective, is one of the best assets our nation has to address the challenge of skills shortages that threaten many industries,” she said in a statement. The international education and training sector is Queensland’s third-largest export earner, directly and indirectly employing more than 17,000 in the state.
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migration update Aus unemployment rises NZ expensive for expats, Australia’s unemployment rate is now at an eight month high and may even rise further in coming months as business confidence gets knocked around by the global markets turmoil. The Australian economy added just 41,400 jobs in the first seven months of the year, less than half the required number to keep the unemployment rate steady. The unemployment rate rose to 5.1 percent in July, the highest level since November 2010, from 4.9 percent in June, the Australian Bureau of Statistics (ABS) said. Economists had expected unemployment to stay at 4.9 percent.
Backpackers to get a
Sydney car market Sydneysiders frustrated at a lack of parking at popular tourist suburbs may soon experience some reprieve. The Sydney of City Council hopes that a new car market where backpackers can sell their unwanted vehicles will free up on-street parking spaces for residents. In a motion passed on August 22, the council voted to create a 40-space car market in the Kings Cross parking station for backpackers’ vehicles. 14
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“It will give backpackers an alternative space to sell their vehicles where they’re not clogging our streets,” Lord Mayor Clover Moore said in a statement. “In the peak of summer, when the number of vehicles increases, there could be as many as 20 to 30 additional car spaces available on the street.” The market will be open 24 hours from Monday to Thursday and from 9am until 5pm Friday to Sunday. The council hopes the car market will be opened before the end of the year.
but cheaper
than Oz The strength of the dollar has made New Zealand a more expensive place for expatriates to move to, but it remains far cheaper than Australia. In Mercer’s annual cost of living survey, Auckland has moved up to 118th place from 149 the year before, while Wellington rose to 136 from 163. Sydney moved up 10 places to 14, Melbourne lifted from 33 to 21, Perth surged 30 places to rank 30, Canberra rose 40 places to 34, and Adelaide was up 44 places to 46. Sarah Barnaby of Mercer said that rising costs, due to currency fluctuations and natural disasters had presented challenges for multinational organisations managing workforces in New Zealand, but that did not diminish its appeal to expatriates or their employers.
Keep track of the latest news and developments on moving Down Under
NZ salary and wages ASB raises NZ fixed
up 1.9 percent mortgage rates New Zealand salary and wage rates, which include overtime, increased 1.9 percent in the year to the June quarter, Statistics New Zealand says. That included a rise of 0.4 percent in the June quarter. The latest annual increase in the labour cost index (LCI) follows a 1.9 percent rise in the year to the March quarter and a 1.7 percent increase in the year to the December quarter. After the 2008/09 recession, annual wage rate growth reached a low of 1.5 percent in the year to the March 2010 quarter.
Salary and wage rates for the private sector increased two percent in the year to the June quarter, following a two percent increase in the year to the March quarter. Public sector rates rose 1.5 percent in the year to the June quarter, following a 1.4 percent rise in the year to the March quarter. For more info visit http://www. stats.govt.nz/browse_for_stats/ economic_indicators/prices_indexes/ LabourCostIndexSalaryandWageRates_ MRJun11qtr.aspx
ASB, a unit of Commonwealth Bank of Australia, has raised its fixedterm mortgage rates even though the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) unchanged at 2.5 percent. The move comes after Westpac increased its six-month mortgage lending rate by 26 basis points to 5.85 percent and its one-year capped rate by 25 basis points to 6.75 percent. Westpac New Zealand chief executive George Frazis said on August 3 that none of the major banks in New Zealand were trying to make their mark as a price discounter and this created a more rational credit pricing environment. Westpac New Zealand had doubled its return on equity in the past two years from about 8 per cent to close to 15 per cent, he said. ASB hiked its fixed mortgage rates by between five and 40 basis points. The one-year rate was now 6.15 percent, the 18 month rate was 6.40 percent, two-year rate 6.65 percent, three-year rate 6.95 percent, four-year rate 7.35 percent, and five-year rate 7.75 percent.
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ASK THE EXPERT Expert advice on all things visas, migration and more
Q A
In the year I leave the UK , am I entitled to a tax refund?
While everyone’s circumstances are different, up to the king if you were wor date you left and you left part way through a tax year then it is very nd. likely that you are due a tax refu rs aye taxp that is this The reason for ain cert resident in the UK (and are classes of non residents as well) ce entitled to a UK personal allowan the (£7,475 2011/12). Those within l ona pers r thei PAYE system have (or allowance split into monthly inst weekly) amounts and offset aga . day pay h eac their salary at As a result, if a taxpayer leaves r, the UK part way through a tax yea r they have not been allocated thei ,a full personal allowance and as such . due refund is generally Finally it is also worth noting that inst certain expenses can be offset aga is employment income. Where this r afte ed plet com be the case a P87 can The . med clai the tax year and a refund rules are complex but as a general olly, guide the expenses must be “wh rred incu ” rily essa exclusively and nec
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the first two for the employment. In reality, The last ed. sfi conditions are normally sati t PAYE condition however means that mos Examples workers cannot claim expenses. e claims ens exp h suc of professions where tors, Doc : are normally possible include Accountants, Dentists, Nurses, Medical staff, is simply Architects etc. The main reason l bodies are iona fess pro that subscriptions to lish a list of pub normally deductible. HMRC approved professional bodies.
Q
I have a property in the UK that I have been renting since 1996. I will be migrating to Australia in two months on a permanent visa and intend to stay. I have rece ived advice that if I sell the property in a different tax year from when I become tax resident in Aus I will have no Cap ital Gains Tax liability from the UK Tax Office. Instead I will only be liable for Aus gains tax from any rise in value from when I become Aus tax resident to when I sell. Could anyone clarify this point? Does a different tax year mean I coul d sell after next April? Tim, Surrey
in the Return annually as long as you reta Tim, as you will property and let it. be leaving the UK Turning now to the UK Tax permanently midway T is consequences of disposal: UK CG through a tax year, only is it ns a territorial tax which mea Statutory you will be able to utilise Extra inarily levied on taxpayers who are ord ns Concession A11. Basically this mea nt to point resident in the UK. It is importa me Inco UK for ted trea be will that you ital out here that Income Tax and Cap the UK Tax purposes as non resident in taxes. inct dist Gains Tax (CGT) are very As a from the date of your departure. ESC to CGT does have an ESC similar le for non resident you will only be liab does not A11 which is called ESC D2. It me. inco rced sou UK on Tax me UK Inco a result, however apply in your case. As your UK Therefore, if you continue to let year tax the l you will need to wait unti you will property once you have departed, if you re after the tax year of your departu on that need to continue to pay UK tax any gain wish to avoid paying UK tax on will rces sou UK non from me Inco income. tion you on disposal. Based on the informa not be taxable in the UK. need will you ns have provided, that mea You should also register as a Non to wait until 6 April 2012. will allow Resident landlord (NRL) which While your intention is to leave gross. If you to receive your rental income do change so please r tenant or permanently, things you don’t register as an NRL you rn to the UK within deduct 20 note that if you retu letting agent is legally obliged to then any five tax years of your departure to HMRC percent from the rent and pay it ed when gains realised on property you own unt acco no s take this As alf. beh r on you to UK you left will become chargeable mortgage of tax deductible expenses (like UK. the in k CGT on your arrival bac be interest) it means you will probably tralia Aus to Finally, as you are moving t I have paying too much UK tax. One poin you will permanently it is highly likely that as an ed ster regi g bein le whi : here ss to stre gain on have to pay Australian tax on any r rents NRL does allow you to receive you an tax trali Aus take disposal and you should UK gross, it does not exempt you from advice accordingly. to file a Income Tax. You will still need
A
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ASK THE EXPERT
Q A
A friend who rece ntly immigrated to ld me I should cash in my ISA before I leave. Is that good advice?
Unfortunately as we are not regulated Financial Advisors we cannot advise on ition or whether you should liquidate a pos r are not. What we can advise on howeve the tax consequences of doing so. ing I am assuming that you are leav lt resu a result, the UK permanently and as on their worldwide income. As a Not and t iden Res Non ome will bec will be while income arising in the ISA from the likely Ordinarily Resident (NRNOR) very is it tax, sheltered from UK in date of your departure. ble taxa that the ISA income will be le you The first thing to note is that whi your new home country. leave, as can maintain your ISA once you From a tax perspective, it would be able a NRNOR taxpayer you will not efore that the benefits of the your ISA. appear ther word to contribute additional funds to ISA no longer exist. That said, a any an Your ISA will continue to shelter of caution – you should check with tax. UK from it in with ing aris relocate income advisor in whatever country you note is to tax However, the important thing to seek s doe tion to that that jurisdic a this is that an ISA is only tax efficient from ed, tion worldwide income. As men the UK, and ons UK perspective. Once you leave a general rule but there are excepti ntly ane perm le sett will you tax to I assume if the new jurisdiction doesn’t seek stion cial to efi in another jurisdiction. Your que ben be may it worldwide income, rule . doesn’t state where but as a general tive pec keep the ISA from a tax pers dents most countries seek to tax their resi
ABOUT THE EXPERTs 18
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These questions were answered by Seamus Murphy, Senior UK Tax Manager, and Nick Petrov, UK Tax Consultant. Contact details: Freephone 0808 2381 611, email uk@taxback.com, or visi t www.taxback.com/anzoutlook
Moving overseas Leaving the
UK to move abroad? Don’t forget to tie up those loose ends. By Seamus Murphy and Nick Petrov of Taxback.com
I
t can be quite a chore trying to understand the tax consequences of leaving the UK. Every year thousands of people leave and most never give much thought to whether they still have obligations to HMRC; worse still, many leave and never reclaim overpaid tax. Here we’ve put together some top tips to help you avoid the most common mistakes:
Claim that refund One of the most common mistakes made by taxpayers leaving the UK is the failure to claim a refund of overpaid tax. All UK taxpayers (and some non residents) are entitled to a UK Personal Allowance (basically a tax free allowance). For PAYE taxpayers, their personal allowance
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is split into weekly or monthly amounts and offset against their weekly or monthly wages. A taxpayer who leaves the UK part way through a tax year therefore does not get the full benefit of their personal allowance and in most cases, overpays UK tax. To reclaim the overpayment a claim must be submitted to HMRC. Many departing taxpayers however are not aware of this and needlessly leave their money with HMRC. The timeframe for making this claim is currently 6 years but it is being revised down to 4 years very shortly. Self-employed (self assessed) taxpayers on the other hand are subject to a different method of tax collection. Rather than the tax being taken via PAYE, they must file a Tax Return annually, declaring their income and working out their tax liability.
The tax itself is paid as follows: 31st Jan – 1st Payment on Account (POA); 31st July – 2nd POA; 31st Jan next – Balancing payment - the difference between the amount paid as POA’s and the final liability becomes due. A self-assessed taxpayer who leaves the UK part way through the year may therefore have overpaid tax as a result of their POA’s. The POA’s are an estimate of the current year liability based on the prior year. If a trader ceases part way through a year therefore, the POA’s are likely to be excessive. Any overpaid tax should come out in the wash when the taxpayer files his final Tax Return but it’s important to remember that the Tax Return must be submitted.
About the editors Seamus Murphy is Senior UK Tax Manager and Nick Petrov is UK Tax Consultant, both with taxback.com Freephone 0808 2381 611 E-mail uk@taxback.com Web www.taxback.com/anzoutlook
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Moving overseas Register as a Non Resident Landlord This is only relevant to taxpayers leaving the UK and letting their UK property. It is however an immensely common area of confusion. The term non-resident landlord (NRL) is a misnomer; in reality someone is classified as an NRL if they let UK property and their usual place of abode is outside the UK. The main consequence of being an NRL is that the tenant or letting agent is legally obliged to deduct basic rate tax (20%) from the rental income and pay it direct to HMRC. The problems with this are two-fold: 1. As the 20% is deducted from the rents before any allowance is given for tax deductible expenditure (e.g mortgage interest), it will be in excess of the real tax liability. 2. While this excess can be reclaimed, it will only be received after the Tax Return has been submitted. The result is a loss of cash flow. The above scenario can be avoided by registering with HMRC’s NRL scheme. Once a taxpayer is registered, the tenant/ letting agent is not required to deduct tax at source. The NRL can receive the rental income gross. A word of warning though, while the NRL does allow for gross rent receipt, it does not exempt the income from UK tax and the NRL will need to file a UK Tax Return annually and pay the corresponding UK tax due. Finally, most countries operate a Residency tax system – this means they levy tax on their residents’ worldwide income. While some countries (notably Hong Kong) 22
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operate a Territorial system, the majority are Residency based. As such, a taxpayer departing the UK is likely to be subject to tax in his new home country on his worldwide income - including his UK rental income. In these scenarios advice should be taken on the specific rules in the foreign jurisdiction but in general there should be some form of double tax relief available in that country for UK tax paid on the UK rental income.
Sort out your Bank Accounts For those UK taxpayers leaving the UK but intending to retain their UK bank accounts, one aspect often overlooked is the fact that it is possible to receive interest without the deduction of tax. Savers who are ‘not ordinarily resident’ in the UK can complete Form R105 to receive their interest without UK tax taken off. Unfortunately Banks are not required to accept a R105 so not all Banks offer this facility. As in the case of the UK rental income discussed above, while it may be possible to avoid UK tax, advice should be taken in the foreign jurisdiction to which the taxpayer is emigrating as to the tax status of the UK interest in that country.
Pension Issues The whole area of pensions is highly complex and confusing to many taxpayers and this is not surprising given the number of changes we’ve had since April 2006. While there are many things we could say about the good and bad of migrating to a QROPS (Qualifying Recognised Overseas Pension Schemes), that would be an article in itself. Instead we’re just going to focus on the scenario where a UK taxpayer is receiving a UK pension and moves overseas. As a general rule, non residents of the UK are taxable on their UK source income. That said, many Double Tax Treaties (DTT) specifically address the topic of pensions. Double Tax Treaties do exactly what they say on the tin – they are bilateral agreements between countries which ensure the residents of those countries do not suffer double taxation. The pension article in most DTTs
allocates the taxing rights to the country of residence. A good example is the UKAustralia Treaty. So as an example, consider a UK taxpayer in receipt of a UK pension who moves permanently to Australia: in the absence of the DTT, the UK pension would be subject to UK PAYE at source. However, because of the terms set out in the UK-Australia DTT, the UK pension is in fact exempt from UK tax but taxable in Australia. In order to ensure the pension is not subject to UK PAYE the correct form must be completed. The forms are available for download at http://www.hmrc.gov.uk/cnr/app_dtt.htm A taxpayer who has moved to Australia but has not filled out the correct form is likely to be receiving his pension net of UK Tax through PAYE. As a result, he will have overpaid UK tax. Fortunately a refund can be claimed so all is not lost. The deadline for claiming the refund is 6 years, soon to be cut to 4 years.
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Expat PROFILE
Carly s ’ Story By Chris Farnell
T
he way things have been in the UK you couldn’t be blamed for wanting to see whether pastures were greener elsewhere - Carly Derisz decided to do just that. That’s why a year ago she and her partner moved to Melbourne: “My partner Kieran, who I met in the UK, is Australian and when the opportunity arose to invest in a business out here, we
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both jumped at the chance, mostly because the situation in the UK was becoming pretty dire, particularly on the political and employment front but also just for a change of scene.” While Australia might have seemed like the obvious choice for Carly and Kieran, they didn’t move there by default. For a while it looked like they were going to be heading to Europe. Carly explains: “Kieran wasn’t
dying to go home, we had also considered moving to Germany, but we were both very keen to leave the UK. In the end it was a tossup between Sydney and Melbourne based on where the business was most likely to succeed, and for me, Melbourne as the cultural heart of Australia, with its reputation for amazing theatre, fantastic food and interesting and diverse bars, was the obvious choice and I don’t regret it one bit.”
Making the move Since then things have been going well for Carly and Kieran. They’ve started up their own software business, RTS Solutions, which Carly works out of as a contractor. Her current role is as the bid coordinator with UGL on a tender for the Regional Rail Link Project. “The tender is submitted in two weeks after nine months of really hard work,” Carly says. “So fingers crossed that we win!” While her and Kieran’s business is already well established, Carly is still working to get a long-term VISA for the country, as they moved to Australia at quite short notice. “I have found the process quite stressful at times and incredibly invasive,” Carly admits. “Particularly the sort of information you have to supply to prove you are in a committed and true relationship. However, in comparisons to some of my friends here who are from non-Commonwealth countries and are applying on a different VISA, it’s been a breeze and will be granted fairly quickly. Friends of mine have been going through the VISA process of upwards of four years.”
The cultural diversity is wonderful, in a different way to the UK as there is a different mix of cultures. There is a massive South-East Asian community here so good, cheap food is in abundance AUSTRALIAANDNEWZEALAND
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Expat PROFILE
ACarly’s newnever home regretted making the move, but there are still things she misses from the UK however. “I miss decent curry – Indian food here is weak in comparison to the good stuff we get back home!” she tells us. “I miss the BBC (Aussie TV is more or less all like ITV, rubbish!), a better selection of newspapers, and football, or soccer as they call it here, although am getting quite into AFL – you don’t have much choice living in Victoria.” Naturally, she’s also missing her loved ones in the UK as well. “The time difference makes it really difficult to coordinate phone calls often – thank goodness for email and Facebook!” 26
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Still, while the UK has its plus points, Carly loves her new home. “The cultural diversity is wonderful, in a different way to the UK as there is a different mix of cultures,” Carly says. “There is a massive South-East Asian community here so good, cheap food is in abundance. I love that Melbourne has all the high points of city living but is actually quite small and it feels very safe. The Aussies don’t think so, but compared to London or Bristol where I am from, it’s a walk in the park!” Ironically, that diversity can make it difficult to mingle with non-Brits. “There are so many Poms out here,”
Carly says. “It is easy to group together because of your shared sense of culture and humour!” She’s also correct a few of her preconceptions about Down Under. Asked about the biggest surprises about the move, Carly says, “The lack of gigantic spiders I have encountered, but then I haven’t been to the outback much! On a more serious note, I am surprised every day by how far behind the UK Australia is, especially in terms of gay and women’s rights. Gay marriage is illegal here and both the main political parties refuse to put the discussion on the table despite a huge swing to the left on the issue. It may also surprise you to learn
that, in Victoria at least, abortion was only legalised two years ago and is definitely still quite taboo.” If you’re thinking of following in Carly’s footsteps Carly can’t recommend it enough- but she does have some advice for prospective poms: “I wish I’d known how expensive clothes and shoes are – I would have happily paid to ship far more clothing from the UK here in the first place instead of sending half my belongings to charity shops!” Visit Carly and Kieran’s business here: www.rts-solutions.net
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TRAVELLER'S GUIDE
Melbourne The Bright Lights of
Australia and New Zealand Outlook visits Victoria’s state capital.
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By Chris Farnell
M
elbourne is popularly known as Australia’s cultural capital. This may be just because it wants to stick it to Sydney- the city of Canberra was founded when neither Sydney or Melbourne could decide who’d get to be Australia’s capital, and for the last two centuries the title of Australia’s most populace city has been passed between the two of them- it’s due to return to Melbourne around 2038. So Sydney may get to have an opera house shaped like the sale of a pirate ship, but the title of culture capital has still been claimed by Melbourne. It’s a title the city has worked hard for, and while you’re in Melbourne you’ll find plenty to sate your cultural appetites.
Taking in a show If you’re a film buff, check out the Australian Centre for the Moving Image on Federation Square. The centre “celebrates, explores and promotes the cultural and creative richness of the moving image in all its forms - film, television and digital culture”. It’s a great place to go see an arthouse flick, see some cool installations and plays host to all kinds of live events and creative workshops. If a live show is more your thing, pay a visit to the Malthouse Theatre in the Melbourne Arts District on Southbank. This theatre was originally a brewery and malting works, but now plays host to as many as twenty productions a year, including contemporary opera, cabaret and drama. Some of the productions they’re showing over the next season are Look Right
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TRAVELLER'S GUIDE Through Me, whose plot sounds like a more whimsical version of The Hangover, a cabaret version of classic Hans Christian Anderson fairytale Little Matchstick Girl, and my personal favourite title ever, Ganesh Versus The Third Reich, which is actually about an elephant headed god going one on one with Adolf Hitler (He wants to reclaim the swastika as icon of Hindu culture apparently).
Going for a drink Of course, there’s more to culture than sitting in neat little rows and having it pumped into your eyeballs. Some of the best culture happens when you just go into a space full of people and really immerse yourself in the local atmosphere of a placepreferably a place that sells beer and has a reasonably eclectic juke box. In Melbourne such spots are abundant, although the good ones require a bit of exploring to find. Some of Melbourne’s best pubs are tucked into narrow alleyways and backstreets, and it’s not uncommon to find the door to a great dive bar nestled in between a couple of bins! Good places to check out include the charmingly named Sweatshop- a basement bar hidden away under its much swankier sister bar The Seamstress on Lonsdale Street. With a range of classic bar snacks and Asian cooking, a decent selection of beers and downright threatening range of cocktails, it’s worth stopping in for a drink. Out on Bourke Street you can get a drink at Madame Brussels, a pub named after a famous 19th century Melbourne brothel
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owner. Meanwhile, on Tattersall’s Lane you can find a temple to Australian ingenuity in the form of Section 8. Rather than an actual building, Section 8 consists of a shipping container in a car park surrounded by some cushioned packing crates with a few outdoor heaters scattered about. The result is one of Melbourne’s coolest outdoor drinking spots.
Buildings worth seeing Bars aren’t the only buildings worth visiting in Melbourne however- one of Melbourne’s trademarks is its range of fantastic and bizarre architecture. Buildings to look out for include the Melbourne Recital Centre that looks like a giant beehive made out of Lego- in a good way! After marvelling at how it was built, you can even take in a show there. Of course, if you’ve been to the Australian Centre for the Moving Image you’ll have already seen Federation Square, which looks like it was built by drunk alien robots.
Getting about Melbourne is a place with tonnes to see and do, but fortunately getting around the city is a breeze. Melbourne’s tram network isn’t just a cheap and convenient way to get from A to B, but also a great way to see the city. The network consists of 250 km (155.3 mi) of track, 487 trams, 28 routes, and 1,773 stops, and is considered to be the pride of the city. In fact, it’s the largest tram network in the world. Of course, the citizens of Melbourne would love to point out that the largest tram network in Australia used to be Sydney’s- but they don’t have that anymore.
Places to see: The ACMI www.acmi.net.au Malthouse Theatre www.malthousetheatre.com.au Sweatshop Bar www.sweatshopbar.com.au Madame Brussels www.madamebrussels.com Section 8 www.section8.com.au Melbourne Recital Centre www.melbournerecital.com.au Federation Square www.fedsquare.com Melbourne Public Transport www.metlinkmelbourne.com.au
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weird events ’s Australia
t s e d r Wei s t n e v E
By Chris Farnell
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et’s face it, Australia is weird. Mammals lay eggs, water goes down the plughole the wrong way and when you throw sticks they come back. If you’re born and
raised in a country where people celebrate Christmas with a beach barbecue, it’s understandable that you might turn out a little... eccentric. So it’s no surprise that Australia plays host to some pretty unusual events. Here, we review the most
The Nude Olympics There have been many criticisms of Britain’s handling of the London 2012 Olympics, but perhaps its biggest flaw has been the insistence that both audience and athletes wear clothes during all competitions. Back in the eighties Australia caught wind of this market niche. Featuring events ranging from sprints, marathons and tug of war through to “Best Bum” and “Magnificent Moms”, like the regular Olympics, these events celebrate the very best of human accomplishment.
bizarre Australian events, using a five platypus rating system - With the platypus being the standard measuring unit for Australian weirdness.
5
Platypus Rating:
The original ancient Greek Olympics were already in the nude, so this is hardly bizarre at all.
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weird events Parkes Elvis Festival In the second week of January every year the streets of the town of Parkes in New South Wales are overrun with an army of Elvis Presley impersonators, like some sort of Rock and Roll zombie apocalypse. Over the next few days visitors will bear witness to the Elvis Gospel Church Service, Elvis Golf Day and the Elvis Street Parade.
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Platypus Rating: Elvis has left the building.
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Henley-on-Todd Regatta We’ve told you before about Darwin’s famous beer can regatta- where contestan ts race boats built of beer cans. The citiz ens of Alice Springs took one look at that, thou ght it was far too sane, and decided to thro w their own version with an extra dose of crazy. So they hold their boat race on the Todd River- which is most notable for its com plete lack of water. Instead, the sailors mak e their way to the finish-line Flintstones style, sticking their legs through holes in the bottom of their boat and running for the finish .
Platypus Rating: Some of them dress up as Vikings. You don’t take costumes from 8th century Norway to Australia’s Northern Territories with out a few platypuses worth of weirdnes s.
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Cane Toad Racing The history of cane toad racing goes back to 1933, when a bunch of Australian scientists completely missed the point of the song “There Was An Old Lady Who Swallowed A Fly”. In an attempt to wipe out the beetles damaging their sugarcane crops they released a bunch of large, poisonous South American toads into the wild. This plan backfired with all the inevitability of an episode of Chuckle-B rothers. Since then, Australians have come up with many novel uses for the cane toad, from using them to make wallets to licking them to get high. It was only a matter of time before someone decided to race them. The racing toads are collected in a bucket, are numbered and named, then competitors are issued a toad that they are instructed to kiss. The toads do not turn into princes. They are put back in the bucket, which is place d upside down on the centre of the floor, when the bucket is lifted , the first toad to get off the floor wins.
1 Platypus Rating:
They throw fish!
2 Platypus Rating:
Now we’re starting to see some proper Ripley’s Believe It or Not levels of weird.
Tunarama r event isn’t going to If you’re ever worried that you the suffix “arama” to the be insane enough, try adding The website describes end of its title. It never fails. s biggest and most Tunarama as “South Australia’ trepiece of the festival is popular free event” and the cen n- which is exactly what it its “Tuna tossing” competitio it in turns to see how far sounds like. Competitors take y see who can hurl a big they can throw a large tuna. The is the one who can propel fish the furthest. The winner bridae” the greatest a member of the family “Scom ase that makes it sound distance. There is no way to phr any more sensible.
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What’s on... 27aug
Australian Football League Finals Series Brunton Ave, East Melbourne, Victoria This is a must see – and the spectacular crescendo of 24 weeks of fantastic competition in the 2011 AFL season. From March to September, Australian Rules Football teams battle it out to make the top eight and qualify for the final series. This titanic contest is between two teams with one emerging as the premier side for the year. Close to 95,000 fans pack the stands of the Melbourne Cricket Ground (MCG) for the grand final, while millions watch it worldwide on cable, satellite and free to air television. The final series offers sheer atmosphere and excitement and is a truly unique Australian experience. www.afl.com.au
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Brisbane City, Brisbane, Queensland September is Festival time in Brisbane! Brisbane will be in full festive swing as acclaimed international and Australian artists and productions, free outdoor events, home grown productions and the cutting edge and offbeat burst across theatres, galleries, parks and public spaces. Brisbane Festival will intrigue, delight and inspire with a programme embracing dance, theatre, opera, classical music, visual arts, circus, sideshow and contemporary music. The Festival caters for an amazingly broad audience and is easily accessible with an extensive range of both free and ticketed events. www.brisbanefestival.com.au
World Water Ski Racing Championships
Hornibrook Esplanade, Redcliffe City, Queensland This event is the World Water Ski Racing Championships held every two years. Competitors from approximately 12 countries throughout Europe, United States of America, Australia and New Zealand come to compete. This is the first time this event has been held in Queensland. www.skiracing.com.au www.anzoutlook.com
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Our guide to the unmissable events, holidays and celebrations in Australia and New Zealand this month Bigsound 420 Brunswick Street, Fortitude Valley, Queensland Bigsound is Australia’s biggest celebration of breaking artists and music industry networking, drawing top national and international industry talent to Brisbane each year. It is a great place to discover new music! www.bigsound.org.au
Melbourne Fringe Festival
Cnr Queensberry & Errol Streets, North Melbourne, Victoria Unique, intriguing, exciting and enticing, Melbourne Fringe is guaranteed to deliver the newest, smartest and most inspirational art in the country this spring. The 2011 Melbourne Fringe boasts hundreds of shows in venues across Melbourne featuring more than 4000 artists. www.melbournefringe.com.au
MELBOURNE CUP
Spring Racing Carnival 400 Epsom Rd, Flemington, Victoria The Spring Racing Carnival is a world-class event showcasing thoroughbred racing, fashion and entertainment at its finest over 50 fabulous days across Victoria. From Camperdown to Caulfield, Manangatang to Moonee Valley, you will love the excitement and fervour of racing at both metropolitan and country tracks. www.springracingcarnival.com.au AUSTRALIAANDNEWZEALAND
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O 27 Se n sale pt 20 11
AFL Grand Final The spectacular crescendo of 24 weeks of fantastic competition
Traveller's guide to Queenstown Queenstown is to New Zealand what Ko Phan Ngan is to Thailand
Australia in Spring September is the first month of the southern spring and it’s a season of regrowth and flowers.
PLUS Expat stories Migration news Expert advice 38
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Do you still call Australia home? Opportunities for experienced professionals include: s Project and Program Managers s Change Managers s Enterprise Architects/Solution Architects s Applications Developers (.Net, Java/J2EE, Sharepoint) s Data Warehouse / Business Intelligence Consultants. s L&D Consultants (Instructional Designers, Trainers, Multimedia Developers) s OBIEE Consultants s Siebel Consultants (BA’s, Technical Consultants, PM’s, UCM, On Demand) s Junior and Senior Business Analysts and Business Process Specialists s Data Modellers and Database Developers s Data Management / Data Quality Consultants s Agile Consultants s Customer Experience BA’s s Systems Integration Specialists (TIBCO, Websphere, Calypso)
Homesick? Missing sand between your toes? SMS Management & Technology (SMS) is Australia’s premier home-grown IT management consulting company employing over 1600 technology and business professionals across Australia, Hong Kong and Vietnam. SMS will pay your fare home (partners and children included) to join any one of its Australian offices in Adelaide, Brisbane, Canberra, Melbourne and Sydney if you meet our requirements. SMS works across a wide range of industries, most notably financial services, government, telecommunications, health, defence, utilities, airlines and mining. Candidates from any of these industries are of particular interest, as are those with management and technical consulting experience. Would you like to join us in 2011? We’ll be conducting interviews in Manchester and London over two weeks commencing 19 March. Applications should be forwarded through the SMS website at www.smsmt.com with a detailed letter providing additional relevant information. Applicants will be advised soon after their application has been received if an interview is to be arranged. If you would like to meet us at the ‘Working In’ Australian Recruiting Expo in Manchester 19/20 March or London 26/27 March, contact us for a complimentary visitor’s pass.
SMS Management & Technology Head Office: Level 41, 140 William Street, Melbourne VIC 3000
ADELAIDE – BRISBANE – CANBERRA – MELBOURNE – SYDNEY – HONG KONG – VIETNAM
www.smsmt.com