Home, sweet, home

The conclusion of your expatriate assignment can lead to a number of exciting possibilities. These opportunities include returning to Australia and resuming employment with your existing employer, retiring after a highly successful career or, in some cases, terminating your employment due to changed circumstances back on home soil.

Regardless of the situation you find yourself in, it is important to carefully pre-plan your re-entry into Australia so that you can take advantage of the special rules that may apply prior to your return.

 

Investments – Structures and Accumulations

One of the key issues to consider relates to the investment structures and specific investments that you have accumulated while offshore. Resuming work within Australia can have implications on the cost base (and, hence, future taxation liabilities) for investments held including any benefits. Now is the time to understand the implications and take appropriate actions.

Some of these structures and investments may be adversely treated under the Australian law. This law, which is designed to discourage investments in offshore tax havens, can have impacts on investments held in other countries so it is important to understand how your investments will be treated under these laws.

 

Foreign Pension Funds

If you have accumulated investment funds in an offshore pension fund, then it may be important to review Australian taxation implications for the funds once you return to Australia. In some cases, these funds may be caught under the FIF rules, if maintained offshore. Similarly, the case for transferring the funds back to an approved Australian superannuation fund should be reviewed and a decision made on the most appropriate timeframe for repatriating these funds. At Strategic Wealth, we work with experienced offshore service providers to review and implement the transfer of these funds to Australia.

 

Developing Your Wealth Management Plan

Now is also the right time to develop or update your Wealth Management plan for the next phase of your life in Australia. If you are retiring, then this will include a comprehensive retirement plan that will provide you with a roadmap for your retirement, to understand the funding available to meet your lifestyle and other needs.

If you are being made redundant due to changed circumstances for your Australian employer, then you may be eligible for consideration under the special rules that can apply in this area for the foreign component of your working life.

Finally, if you are resuming your work activities in Australia, then your plan will reflect changes to your compensation package along with the latest legislative changes for superannuation and tax laws. This will ensure that you continue to accumulate wealth in the most appropriate structures and enhance your ability to achieve your lifestyle and retirement planning objectives as early as possible.