American w/ Australian Job Offer

[kfr]

Hello! I am an American receiving a job offer to live and work in Australia. Wanted to get your collective advice on how to proceed / structure the contract.

The company is HQ’ed in Australia, but has a US office.

Some questions that come to mind…

1. Would it be better to be employed by the US entity or the Australian entity? Does it matter?
2. Understanding that there could be currency fluctuations, do people generally think it’s better to be paid in USD or AUD?
3. Any specific terms that you’d recommend get written into the employment contract (eg Tax Equalization, Foreign Tax Preparation & Filing Services, etc.)?
4. Other thoughts/ watch outs?

Thanks!

 

[resjudicata]

@kfr I believe you have to be paid under the local Australian entity and in AUD as you are working there and living there, unless your firm is giving you an expat package, which is possible but hugely expensive for a company.

Definitely ask for tax help in your contract. Also, understand the superannuation implications around taxes and FBAR requirements, especially if you don't plan to stay there long term. Note the Australian tax year is July - June which also makes things a bit messier.

Ask them to cover your private medical insurance. As an American, they don't have reciprocal national health so you don't qualify for that and have to have private as part of your visa. I had BUPA and they were pretty good.

ensure your company is covering the visa costs.

 

[kfr]

@resjudicata My understanding/expectation is an expat package, but I’ll see when it officially comes across.

Great flags on insurance, super, visas, etc.

Re: Visa — feels like it would be worth doing a 186 visa instead of a 491, no?

 

[resjudicata]

@kfr Not sure - I don't remember what my visa was to be honest.

You are lucky with an expat package. If so, they may be including housing, trip home, etc and it would be in USD. At least that is my experience with expat packages. If so, you will want to find a local bank and look into how to transfer cash for regular spending. I found Sydney pretty cashless when I was assigned there.

With expat, make sure it includes tax equalisation. My biggest issues were taxes on stock I received as part of my pay and the superannuation as I had to file in 3 countries at the time and the rules on reporting stock were different in UK and AU. EY screwed up my taxes multiple times.

 

[starsilver117]

@kfr Not to Australia, but I was an expat in Canada, and my husband is Australian so familiar with some things there.
As an expat My salary was USD converted to CAD and then I had exchange rate protection for any money I sent back to the US. Also had a cost of living adjustment.
Definitely need them to cover tax prep for both countries while there and we had it for 2 years after due to trailing tax implications.
Trip home once per year paid for with extra paid leave for it.
Schools in Australia - if you have kids understand the implication of public vs private there, a huge percentage of kids are in private school.
The exchange rate is helpful but assuming you’re in Sydney, housing is very crazy depending on what you’re comparing it too so make sure your pay or cost of living adjustment factors that in.

 

[rsanchez353]

@kfr You could also ask for a company car. I would be surprised honestly if you get a full expat package that would be equal to what you’d be making in the US unless you are C level and even then salaries/total rewards is prob still lower.

Also something to note is that the top Australian tax rate is 46% so model that into your assumptions.

You want salary + super otherwise your take home is going to be even lower.

 

[treyana]

@kfr if you have children, public school is not free to temporary visa holders in NSW (not sure about other states). ask for tuition fees to be reimbursed by your employer.

if your employer offers you a choice, i would go for being paid in USD as US compensation ranges will be higher, and the USD is strong. I think legally you will need to be employed or seconded to the AUS entity and this will mean you are protected by australian employment laws.

like others have mentioned, ask for home leave trips annually, tax equalization, tax preparation services, accommodation allowance, relocation assistance, health insurance (will be required for your visa).

if you think this could be a long term move, make sure your visa allows a path to permanent residency.