Making the move down under

23-Jan-2008

Deciding to move to Australia involves not only a great deal of thought regarding your job and career, but a lot of preparation in organising the bureaucratic necessities. Leah Larkin gives a brief summary of the main areas to consider

"The Australian recruitment market is one of the fastest growing industries in Australia and is continuing to grow and to abound with opportunities," says Elaine Penketh, director of recruitment consultancy McCall International. "The market is highly competitive, fee-driven and becoming increasingly candidate-short, hence why UK recruiters suit it so well."

Anne Marie Butts, a senior consultant with the recruitment consultancy JPA, says the recruitment market in Australia is "quite juvenile… not well marketed and not widely heard of". Thus it is rich with opportunity for those from the UK where the market is well established. Penketh notes that UK recruiters have the right mentality, methodology, style of work, mind set and energy which make them in demand in Australia.

Making the move
To fill the demand, many UK recruiters head off to seize the opportunity for a new job in attractive surroundings. "In Sydney there is a massive number of recruiters from the UK — at least 50%," says Nigel Hunt, from the Australian consultancy Your Network.

Last February, Janine Runaghan left her recruitment job in Nottingham with Barker Ross and made the big move down under to work as a recruitment consultant in Sydney. "I have no regrets whatsoever," she says.

Louisa Kirk left her recruitment job in Bristol five months ago and is now happily employed as a senior consultant with Porterallen Hendren in Sydney, enjoying "the weather and quality of life".

Lots to consider
It's a big decision — and not always easy to make the transition. Finding the right job, getting a visa, organising the move, dealing with Australian taxes, health insurance and pension plans can be a challenge.

There are numerous ways to track down job openings in Australia: the internet, recruitment-to-recruitment consultancies, newspaper and magazine ads, and friends already working in the country. Runaghan's friend and former manager had moved to Australia and suggested that she would love the country as well as the company she was working for. "She was right," says Runaghan.

Kirk found her job from a rec-to-rec consultant, while Sharpe responded to a newspaper ad. Some just take off for Australia and look for a job upon arrival.

Salary terms
Those who have made the move urge caution in selecting the right job. Benefits and salary structures can vary drastically.

"Be careful when they quote a salary," says Kirk. "Look for a base salary plus superannuation." The latter is a minimum of 9% of a salary which everyone in Australia must pay. It's the Australian pension plan and will be refunded when — and if — the employee leaves Australia. For example, if you are offered a salary of AUS$60,000 (£26,000), but that includes superannuation, you will only net $54,600 or less.

Commissions or OTE (on target earnings) are another matter that varies from company to company. In an ad for a recruitment consultant in Melbourne, Your Network states 'a realistic OTE in excess of $200,000 for top performers'. According to Hunt: "Recruiters — good ones — are some of the highest paid people in this country."

Most say their salary in Australia is comparable to what they earned in the UK, with the cost of living about the same. Lisa Norris, director of Norris and Partners, a rec-to-rec consultancy in Sydney, says average starting salaries are between $55,000 and $70,000.

Sharpe says his new company matched his UK earnings, while Runaghan's base package is a little lower than in the UK, but the commission is excellent — "a whopping 33% of everything we bill above threshold, so all in all I am much better off financially and personally than I was at home." She finds rent in Sydney higher than in the UK, with the exception of London. Restaurants, she says, are varied, with some offering great value and others where you pay top dollar. "All in all it is comparable, although the quality of life is much higher," she adds.

Benefits offered by companies also differ. Some pay for the flight to Australia, temporary accommodation for a specified time period and container shipment. Some offer incentive holidays. "Some pay nothing. You must get here yourself. Check out what is offered," advises Penketh.

If you have to pay for household goods' shipment yourself, expect to pay about £3,500 for a full container which holds the contents of an average two-bedroom residence, says John Moynes of Excess International Movers, which makes 40,000 shipments each year to Australia. "I'm quite shocked by the numbers going," adds Moynes.

Getting entry
Those moving to Australia can apply for different types of visas. The application process while still in the UK may be lengthy, from three to four months or longer. You can apply for the visa yourself, or use a migration agency which will charge a fee.

The Temporary Business Long Stay — Standard Business Sponsorship visa 457 is the most common with UK recruiters. It is valid for four years. If the visa holder wishes to stay in Australia longer, he or she must apply for a new visa. To remain permanently in the country, you need to apply for company-sponsored residency, which can take up to a year to obtain.

The 457 visa is for skilled workers. To qualify, recruiters must have a degree and working experience in the field, pass health and character checks, have been offered a full-time job which is available for at least two years, be under 45 years of age, be offered a job with a minimum salary, and provide their own health insurance. In lieu of a degree, longer working experience may be acceptable. With the 457, the visa holder is entitled to bring a spouse/partner, as well as dependents, to Australia.

For those who do not yet have a job but want to investigate working in Australia, the Working Holiday visa 417 is an option. It is available online and applies to those aged 18-30 interested in a working holiday of up to 12 months in Australia. If the 417 visa holder finds a job in the skilled worker category and meets the qualifications, they can convert the 417 to the 457, which offers a longer stay.

The Visitor visa is another option. It can be applied for on-line and is generally for a stay of up to three months. Again, if the visitor finds a job he or she may convert to the visa offering a longer stay.

Norris says her consultancy in Sydney, deals primarily with those who come to Australia to apply for jobs. "It's always better to have a face-to-face interview," she says. "Our clients prefer this even with video conferencing." Getting the 457 once in Australia is not that difficult, she adds, and not that costly. You can do it yourself for about $190 or pay an agency which should charge between $600 and $1,200. "It can take from a couple of days to six weeks, but it's not like the US where it takes up to a year," she says. "The paper work is a bit involved, about 10 pages, but people have been doing it for years."

Healthy living
Those employed in Australia are covered by Medicare, the Australian national health insurance. But this is not like National Health Service in the UK, where all services are provided out of general taxation. Emily Wheeldon, divisional manager for Beaumont Consulting in Sydney, who has been working in Australia for two years, recommends private health insurance, which costs about $50 per month in addition to Medicare.

Other differences in Australia include holiday and sick leave. Full-time employment consists of a 37.5 hour work week with four weeks of annual leave plus public holidays. Sick leave is limited to 10 days per year.

Taxing matters
Those working in Australia must pay income tax. Before beginning employment, you need a Tax File Number (TFN) which can be applied for on line (www.ato.gov.au) at the Australian government taxation website. A valid passport is required for application. In addition to tax purposes, the TFN is used for dealing with other government agencies and investment bodies, such as opening a bank account.

Non-residents are taxed at a higher rate and are not entitled to a tax-free threshold. However, non-residents are also entitled to the Living Away from Home Allowance (LAFHA), a tax benefit provided by the government for those living away from their usual residence for work purposes. LAFHA is available to those with a 457 visa who have a job before arriving in Australia and intend to return to the UK at the end of the working period. "This means you get huge tax relief and actually end up paying fairly minimal tax depending on the amount of rent you pay, as this is how they calculate your individual allowance," says Wheeldon.

Those who get a job after arriving in Australia can use the website mentioned in the top box (www.ato.gov.au) to calculate their tax. Employers automatically deduct tax from salary every pay period

Once in Australia, you may opt for the services of a relocation agency, which some companies may pay for. The agencies help find temporary as well as permanent housing, schools and may provide additional relocation assistance.

Julie Hanley of the Australian company Relocation Specialists says: "It is rare that people see the value in the service unless the company is paying."

The most common needs her firm helps with are school and house searches. For the latter, the company books private appointments at properties and accompanies the client for the viewing. "Sydney is currently experiencing a rental crisis and so what we do is take away the 'Saturday open for inspection' by taking the client during the week. Sometimes this enables the client to find a property prior to going on the open market," she explains. "Saturday viewings are very difficult as there are always a large number of applicants for one property, particularly in the lower price range."

Cautionary note
A move to the other side of the world is a major undertaking. "Don't think it will be a doddle," cautions Penketh. "It takes time to settle and start all over again in what is a very competitive industry. The first year will be exciting, but also a big challenge." However, obviously one that's worth taking!

Louise Kirk, senior consultant, contract and temp division, Porterallen Hendren in Sydney

The good news — and the bad

Consultant Janine Runaghan, who moved to Sydney last February, sums life up as a recruiter working down under:

PROS 

• Living in a fantastic location with great beaches and breathtaking scenery 
• Like-minded individuals and a great social scene 
• Better work-life balance. Less stress 
• Higher earning potential 
• Australians — they are very laid back and a lot of fun 
• The great outdoors and the emphasis on activities such as sport and dancing 
• Nightlife and eclectic pockets of communities within Sydney — each has something different to offer 
• Vast expanse of places to visit. No need to leave the country to explore due to the varied climates and landscapes, ie. rainforest or the Great Barrier Reef 
• Really fresh produce. Bar and café food is cheap, yummy and plentiful

CONS

• A long way from family and friends. Flights to the UK are expensive

Helpful Web sites

Australian Tax office: www.ato.gov.au
Information on Medicare: www.health.gov.au
Information on visas: www.immi.gov.au
Information on the education system in Australia: www.dest.gov.au

Moving to Australia

• Be certain you want to relocate half way around the world. It's a major commitment and a lengthy process. 
• Research cost of living and rental costs in different areas of the country. 
• Find a job. Consult the internet, ads in magazines, newspapers, rec-to-rec consultancies. You can do this while in the UK or, if funds permit, go to Australia for your search! 
• Budget for setting up a new home. 
• Check out the various websites (see above) for information on immigration, the different types of visas, as well as taxes, healthcare, etc. Make sure you have the necessary qualifications for a visa before embarking on lengthy research. 
• When offered a job, carefully consider the salary — what it includes and does not include, plus the benefits offered. Some salaries do not include mandatory contributions to the government pension plan which can make a big difference in earnings.

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