Hi all,
I am negotiating a temporary move from the UK to Australia on a 457 visa.
My company initially said they would pay me in GBP. I asked for this to protect me from the currency exchange risk and transfer fees. They then told me they had learnt this was not possible due to legal reasons with the Australian government. When pushed they said that it was because I would get taxed on my whole income in Australia as I would be seen as tax resident.
Firstly that's not a legal reason! Secondly they seem to be missing the Double Tax Relief Agreement between Australia and Britain. Which as far as I understand would mean I wouldn't get taxed in both places, perhaps I wouldn't get full relief but near enough.
They now want to convert my salary at the exchange rate of 1.86 which is an average from the previous year. The current rate is around 1.97 and an economic analyst friend of mine says they are forecasting using 2 AUD : 1 GBP for the next two years. I feel like I am getting ripped off.
I'd love to hear from anyone who understands the legal/tax implications or has been through this. I will get a financial advisor next week too!
Thanks,
Lee
