Reply to: Contracting in Australia

[Devlin]

When I was in Oz I met a few Indian and Chinese IT dudes who migrated but could not find work. No wonder - all the IT jobs are being outsourced to India and China anyway. I don't know why they bothered, I guess they must have wanted to get citizenship.

This is rife, alsmot every cab driver I chatted to when I was in Melbourne last was in this situation!

[beaker]

Think it might of been a wind up !

I was on $100 an hour 10 years ago in Sydney but last time I was there it was a struggle to get $80 regardless of which hat I put on. I would suggest the $120 an hour in Adelaide is a government job for the boys and not the market rate. I have seen some real slave labour rates and salaries in Oz and they seem to be able to get away with it. I think lots of IT people on visas hanging around to get their Oz citizenship is the reason supply outweighs demand.

When I was in Oz I met a few Indian and Chinese IT dudes who migrated but could not find work. No wonder - all the IT jobs are being outsourced to India and China anyway. I don't know why they bothered, I guess they must have wanted to get citizenship.

[rootsnall]

The taxes that affect contractors in the UK
1. Small Companies Tax: last budget upped it from 19% - 22% - 16% tax increase

2. Capital Gain Taper Relief: from 10% - 18% = 80% tax increase.


That's why is it commonly said that tax is rising.

Not to mention the endless stealth taxes, eg: IR35.

Man where have you been?!!?

Think it might of been a wind up !

I was on $100 an hour 10 years ago in Sydney but last time I was there it was a struggle to get $80 regardless of which hat I put on. I would suggest the $120 an hour in Adelaide is a government job for the boys and not the market rate. I have seen some real slave labour rates and salaries in Oz and they seem to be able to get away with it. I think lots of IT people on visas hanging around to get their Oz citizenship is the reason supply outweighs demand.

[max]

I wonder why British commonly say that the tax is rising or very high. In fact the personal tax in UK has been decreasing since the mid 70s and UK has one of the lower level of taxation in the developed worlds.

You guys need to get your fact straight

The taxes that affect contractors in the UK
1. Small Companies Tax: last budget upped it from 19% - 22% - 16% tax increase

2. Capital Gain Taper Relief: from 10% - 18% = 80% tax increase.


That's why is it commonly said that tax is rising.

Not to mention the endless stealth taxes, eg: IR35.

Man where have you been?!!?

[vhadiant]

Surely, better than no tax cut? In the UK we also have inflation, on top of tax rises!

I wonder why British commonly say that the tax is rising or very high. In fact the personal tax in UK has been decreasing since the mid 70s and UK has one of the lower level of taxation in the developed worlds.

You guys need to get your fact straight

[beaker]

What is their skillset? That is a huge rate for Adelaide!!

Most guys - project management (nothing exciting though - just IT systems implementation) and one guy with specialist knowledge of radio systems ($120/h a few years ago).

Contracts are few and far between though and you need to be well connected to people in government...

[vhadiant]

I would have thought it wouldn't be too hard to get $100 p/hour in Sydney? I have mates in Adelaide who make that...

No, it's very hard to make that money even in Sydney.

You'll earn less in Sydney but you have a much much higher standard of living. Even if you're on $80K - $100K as a permanent you'll live very comfortable.

[Devlin]

I would have thought it wouldn't be too hard to get $100 p/hour in Sydney? I have mates in Adelaide who make that...

What is their skillset? That is a huge rate for Adelaide!!

[beaker]

I would have thought it wouldn't be too hard to get $100 p/hour in Sydney? I have mates in Adelaide who make that...

[rootsnall]

In my opinion you are not likely to earn $200k in Sydney if you earn £80k in London. From what I can see with mates the ratio is often 2 to 1 or less, i.e. if you could earn £80k in London you'd be lucky to get $160k in Sydney. Often Sydney costs of living can be almost as high as London these days too!

In my game rates in Sydney would be only two thirds of the UK rate, if you are lucky ! When I used to work over there I just looked at breaking even and then coming back to the UK if I wanted to save some cash. The good thing about Sydney was the good and cheap flat rental market but I think that is getting a lot pricier for good locations.

[Captain Kangaroo]

In my opinion you are not likely to earn $200k in Sydney if you earn £80k in London. From what I can see with mates the ratio is often 2 to 1 or less, i.e. if you could earn £80k in London you'd be lucky to get $160k in Sydney. Often Sydney costs of living can be almost as high as London these days too!

I agree - $600/day == $140k - getting $200K would be hard unless you were a super-dude in someting relatively rare. And I reckon the cost of living in Sydney is maybe 20% less than London - but only that.

In my situation I estimate due to being an ltd and getting paid as a UK contractor + the exchange rate means I have double the (leftover) dosh I would have in Sydney. Plus all the usual travel things...

[Devlin]

I tend to agree (supported by the fact I'm living here!) but if you earn the same in Sydney as in London, I don't think there's much in it.

For argument's sake lets say you earn £80K gross here, you keep 70% so that's £56K net.

If you earn $200K in Sydney, that's $130K net (£52K) if you go PAYE before you do anything clever.

So you're £4K better off in London, but that would get eaten up pretty quickly by much higher accomodation costs. You can rent a flat in, say Paddington for $300p/w, whereas in Notting Hill it's more like £300 p/w.

Let me know if I'm talking out of my ar$e here.

At the end of the day it's more about being happy with where you live. I've loved living in London but I'm itching to go to Sydney for the lifestyle while still being able to do the same kind of work. I think the pay is enough to justify it.

In my opinion you are not likely to earn $200k in Sydney if you earn £80k in London. From what I can see with mates the ratio is often 2 to 1 or less, i.e. if you could earn £80k in London you'd be lucky to get $160k in Sydney. Often Sydney costs of living can be almost as high as London these days too!

[beaker]

Higher contracting rates and being able to operate through a limited company still makes the maths look much more attractive in the UK vs. Oz.

I tend to agree (supported by the fact I'm living here!) but if you earn the same in Sydney as in London, I don't think there's much in it.

For argument's sake lets say you earn £80K gross here, you keep 70% so that's £56K net.

If you earn $200K in Sydney, that's $130K net (£52K) if you go PAYE before you do anything clever.

So you're £4K better off in London, but that would get eaten up pretty quickly by much higher accomodation costs. You can rent a flat in, say Paddington for $300p/w, whereas in Notting Hill it's more like £300 p/w.

Let me know if I'm talking out of my ar$e here.

At the end of the day it's more about being happy with where you live. I've loved living in London but I'm itching to go to Sydney for the lifestyle while still being able to do the same kind of work. I think the pay is enough to justify it.

[Devlin]

Surely, better than no tax cut? In the UK we also have inflation, on top of tax rises!

Not to mention inflation is irrelevant. Inflation is offset/balanced by wage increases.

You do the maths.

Higher contracting rates and being able to operate through a limited company still makes the maths look much more attractive in the UK vs. Oz.

[max]

Yeah, excepy by 2010 when they actually come in inflation will have wiped out any real gains. Very cunning!

Surely, better than no tax cut? In the UK we also have inflation, on top of tax rises!

Not to mention inflation is irrelevant. Inflation is offset/balanced by wage increases.

You do the maths.