100k challenge: To be achieved before August 2013

TomMK

Yeh on a 457, and thinking about PR and eventually citizenship. Now LAFHA has gone there's less short-term benefit to the 457, and long-term I'd love to come and go as I please, I really like the place.

You're correct that we are not allowed to open an ISA from here (but I think you can keep any ISAs you already had before you moved away from the UK).

And as for sending money back, well I wish I knew! Currently the AUD is the strongest it has ever been against the GBP, mainly as a result of the aussie mining boom + China growth on one side and the UK recession + euro crisis on the other.

But I don't see that changing drastically over the next couple of years so on balance there's probably not much to be gained sending money back right now. I'd say you're better off concentrating on just saving hard in AUD while you have the opportunity.

WorkSavePartayy

^^^ agree with this, I can see the AUD getting even stronger over the next year. Especially now the UK is back in recession.

I'm on my week off now so got t get my tax return sorted!

perth_worker

however what about the issue with paying tax on savings?

i have $50k in a savings account in NAB and have earned around $1k in interest this financial year. I called a tax agent the other day and he reckons I will have to pay extra tax (around $300-$500) due to the additional income I have received from savings along with my salary.

So taking this into account, is it still better for us to keep our money is oz or should we send it back to the uk?

Anyway, how are your guys savings going? -im hoping to save $4000 this month, but going to bali next month so will probably blow it all away there

perth_worker

btw if u don't mind me asking - how much do you guys earn, save and spend each month?

CKhalvashi

VT82 wrote: »

It doesn't seem like anyone has mentioned the main considerations when you have a specific goal like this:

• If you are wanting your currency in sterling, you are taking a view on currency exchange rates by not transferring it into sterling once you get it (and if you are getting 5.75% on your savings, you aren't saving in sterling). It would at the least give you some averageing of the exchange rate over the term you are saving.

Good luck anyhow.

If I am right from the POV of OP's username, they'd be Australian at those rates.

We have large savings outside the UK (TBC bank in Georgia, for anyone that's wondering) at 13%, with GEL to GBP exchange rates going the right way (and has been for the last 6 years), so if the currency is going to remain strong, I feel that it's a good idea. We've had something like 313% return on the original deposit (before 11,000GEL rental income each month) in 6 years, making it hugely profitable!

Good luck OP!

CK

perth_worker

wow really??

Perhaps we should all open a bank account in Georgia - however is that legal and safe?

TomMK

You pay income tax on your savings interest, just like in the UK.Unfortuantely Aussies don't have any equivilent to our tax-free ISAs (that I am aware of) and so the full amount of interest earned is taxable.

High earners (which the mining sector generally implies) will be paying something approaching 30% income tax, so $300 tax on $1000 interest earned seems realistic. However anything over that (in the range $300 to $500 you mentioned) seems excessive and I would be wanting more information.

Even after taking tax into consideration, Australian savings will earn more interest than the current paltry returns on offer in the UK, so no, I don't think it does affect the decision.

As for myelf, doing quite well at the moment. I've been on a roll the last 4 months or so actually, saving about 50% of my take-home. Of the remainder, it's about half rent and half "everything else".

And I'm about to contradict myself and send some money to the UK, but only to cover my student loan repayments... Not a bad time to have to do it, AUD1.48 to the pound right now

WorkSavePartayy

My monthly pay varies slightly month to month but averages out at about $9500 after tax (I'm including my tax return as I was paying a higher rate of tax which I'm getting refunded), amount I save also varies but I'm trying to be as tight as I can so I can save my cash for the uk. I save about 75% of my after tax salary rent, car and essentials take up a lot of the rest and obviously a night of two out in Perth on my week off!!

CKhalvashi

perth_worker wrote: »

wow really??

Perhaps we should all open a bank account in Georgia - however is that legal and safe?

It's perfectly legal, as long as you let the tax man know (which I do, before anyone says anything)

HSBC also had a cumulative deposit bond in Armenia (https://www.hsbc.am, select English on the top of the page.)

How safe the bank is, I don't know, but they owe us more than we owe them now, so I'm not unduly bothered. They're an old part of Sverbank, which was sold to HSBC, which in turn was sold to TBC, which was also a Soviet bank.

CK

WorkSavePartayy

I had to replace my car battery.. $120 down the drain!