Package Advice coming from Australia

[lewisph]

Hi All,

I'm in the final rounds of negotiating my package for the move to HK. I'm on $150k, inc super, in Australia and I'm not sure how the package on offer compares.

I've been offered HK$60k a month with 20k a month housing, an 8k living allowance and 3k for flight backs etc. In total it's about 90k a month before tax which I know is a lot less than in Australia.

Is that comparable to what others have seen when coming across from a similar salary?

[virago]

That's less than what you are earning now. Do you mean $150k AUD in Australia annually you are earning?

[lewisph]

Yeah, 150k AUD inc super in Australia currently

[virago]

Yeah, 150k AUD inc super in Australia currently

OK so that's about $138k in the hand before tax.

Forgot to ask, are you single, family, kids going to school?

So the offer is similar to what you are getting in Australia in $ terms. Yes you will get more from the lower tax but you have to work out if you will be a non resident from the ATO. If you don't intend to be back to Aust. for a while then become a non resident but best to get your accountant to advise on that.

Doesn't sound too good especially if you add in kids then forget about it. Also check out HR firms and their salary range reports. Might be beneficial.

[lewisph]

Forgot to ask, are you single, family, kids going to school?

Coming over with my wife, but no kids. Hopefully she'll be able to get some work too, she certainly wants to continue what she's doing in software testing. I guess if it's all sounding a little low, it's time to go back and push for more. ATO can consider me a non resident as looking to head over for 2 years so that helps i guess... but not sounding like a great story

[virago]

I would try and get 30% above what you are getting now. Your company can say 'oh but the tax is good in HK so a similar package should be fine for you' but that is not their concern as you pay tax not them.

You can also refer them to the many different surveys on how expensive cities are. HK is No. 8 from a recent survey. Sydney is 24 and Melbourne 33. This is the 2010 survey. The 2011 is not so favourable to Australia because of the rising dollar.

[lewisph]

30% above the 60k a month base or the 90k total with benefits?

[virago]

I'm thinking total package but then it's how the contract is structured. I would rather have cash in the hand than messy allowances.

For a nice place in HK figure around $25-$30k but obviously you can get less than this.

[lewisph]

Cheers Virago. I owe you a beer/wine when I arrive.