HKD or AUD pay - which would you choose?

Closed Thread
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Dec 2007
    Posts
    223

    The less tax the better I say.... I don't know much about this topic but if you want my 2 cents regardless I'd take the HKD... that way you don't pay as much tax (compared to Australia) and you can always transfer your money back to an Australian bank account to pay off the mortgage.... HKD will be worth more if the aussie dollar drops even more.

    Last edited by Myrona; 03-09-2008 at 12:20 PM.

  2. #12

    Join Date
    Oct 2005
    Location
    Sham Tseng, NT
    Posts
    452
    Quote Originally Posted by khoong25:
    thx FilipH..

    i think the commodities story is over for now and the Oz economy is slowing. I don't think the AUD will hit such a high again in the next few years so I think Im heading towards taking the HKD and punt on AUD not rising that fast or much.
    Good luck with whatever you choice will be

    But keep also in mind that the interest rate (i'm thinking fixed deposits for the money you'll accumulate during your stay here. Quite important if you are planning to go to HK for several years) for HKD is extremely low. It's actually no existant. one percent or something like that. It really is joke.

    I would imagine you'll get a lot more for your money in AUD? And that's why i think Moving07 makes a good remark about trying to split your pay. Part AUD and part HKD. Get the benefits of both??

  3. #13

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205
    Quote Originally Posted by Myrona:
    The less tax the better I say.... I don't know much about this topic but if you want my 2 cents regardless I'd take the HKD... that way you don't pay as much tax (compared to Australia).
    This is simply wrong. If you are employed in Hong Kong you pay tax in Hong Kong at Hong Kong rates regardless of where or in what currency you are paid. This does not impact the issue at all unless Australia taxes based on place/currency of pay rather than place of employment (and I don't think it does).

  4. #14

    Join Date
    Dec 2007
    Posts
    223
    Quote Originally Posted by PDLM:
    This is simply wrong. If you are employed in Hong Kong you pay tax in Hong Kong at Hong Kong rates regardless of where or in what currency you are paid. This does not impact the issue at all unless Australia taxes based on place/currency of pay rather than place of employment (and I don't think it does).
    Like I said... I don't know much about the topic. I just assumed that if you were to be paid into an Australian bank account, somehow the Aussie tax man was keeping track...

  5. #15

    Join Date
    Jan 2007
    Location
    Southside
    Posts
    656

    PDML is right, there are no tax implications to this question.

    As fellow Aussies paid in HKD we are glad to see the Aussie economy sliding. We took a hit over the last 18 months but are happy to see things becoming saner again. Getting paid in HKD is the way to go I believe for the next two years at least.


  6. #16

    Join Date
    Sep 2008
    Posts
    12

    tax is not the issue here as I've consulted with a tax professional best is to pay HK tax and be non -resident Aus.

    Split pay will make it quite complicated.

    True HK pays interest here, but the more $ I have left in my AUD bank account the less interest I am paying since mortgage rate is 9%.


    tx everyone for their replies. I think I will go with HKD and just take the rate negotiated then. It gives me 10% more..

    The AUD is still freefalling today!!


  7. #17

    Join Date
    Sep 2008
    Posts
    9

    I would say it depends how big a chunk of your income is taken up with the mortgage. I would, on the whole, forget predictions about which way the currencies will go because they are always based on a lot of assumptions which may not hold true.

    If a big chunk of the income goes on the mortgage and you live relatively cheaply in HK then I'd go for pay in AUD as that at least will be a predictable amount each month and you can adjust your other spending to compensate.

    If the mortgage is a smaller chunk of your income and the larger part will be spent in HK then I'd go for pay in HKD, as the fluctuation in your mortgage will be relatively less important.

    Worst case if paid in HKD: the HKD nose dives and your mortgage is greater than your pay.

    Worst case if paid in AUD: the AUD nose dives and you can't afford to pay the rent in HK.

    Between two stable currencies neither scenario is likely, but degrees of them will happen over time.


  8. #18

    Join Date
    May 2006
    Location
    Siu Sai Wan
    Posts
    1,660

    Actually, if you are going to get a conversion rate of 7.4, it seems to be very beneficial to get paid in HKD. Yes, the rates may move, but will they go (much) higher than 7.4? Unlikely. If the rate drops to 6.0, you are going to be significantly better off.

    You may want to get something in your contract that reviews the exchange rate half way through your contract. This may be a possible safe guard for you.