Living and working in Australia
It has long been attractive to UK lawyers to make the trip Down Under, and it remains one of the easiest options for an adventurous soul wanting to experience living and working overseas.
The lifestyle advantages are well-documented. In the capital cities it is easy and affordable to live close to work and the beach, a two hour car journey will be rewarded with beauty and seclusion, and if it is entertainment you crave the cultural and sporting timetable is second to none. There is little need to even mention the weather!
Less well-known is the professional life to be had. The cultural, social and economic similarities with the UK mean that the working environment and career structures are closely aligned. In fact many of the partners in the leading Aussie firms are from the UK or have spent a significant amount of time working in London.
The quality of work is consistently high and, particularly in the top tier, the client base consists of predominantly global organisations with a regional presence in Australia or Asia Pacific. A key difference is in the size of the firms, which are smaller, reflecting the smaller local market. Many find this attractive as it leads to broader work and a more hands-on experience, even at a junior level.
The following is a quick reference guide to those considering a move to Australia, covering most of the main considerations and providing information for further enquiry.
The Living Bit
One of the best features of Australia is that it's size means it is incredibly diverse and the main legal and commercial centres each have their own charms. The following websites will give you an insight into what they have to offer.
The Working Bit
There are four ways for someone without Australian citizenship to gain working rights in Australia.
The good old Working Holiday Visa (s.417) is valid for one year and allows the holder to work for that entire period. The main restriction however is that you are only able to work for the same organisation for a maximum of three months. On occasion law firms are happy to take someone on for three months, but in reality this is rare and the s.417 visa is really only suitable for those taking time out to travel and happy with paralegal work to fund their progress.
Sponsorship or a Business Visa (s.457 Temporary Residency) is the more common way for law firms in Australia to engage UK lawyers. The visa is usually valid for four years and in most cases the cost of obtaining the visa is carried by the firm. It is probably only the top ten or so firms who offer sponsorship.
A De Facto Visa is issued in conjunction with a business visa where a dependent relationship can be demonstrated with the visa holder. An obvious relationship would be spousal, but unmarried couples and same sex partners can also gain rights on a de facto basis. Evidence of living together for the previous twelve months is required and can include joint bank accounts or household expenses among other things.
Permanent Residency is similar to the UK's Right to Abode. It gives the holder the right to live and work in Australia indefinitely and ultimately to apply for citizenship. An application for PR can be made from the UK in advance and is based on a points system, with points values given for factors like age, profession, education etc. It is subject to frequent change and can be a long process, generally a minimum of fifteen to eighteen months. PR can also be applied for after two years on a sponsored visa. The criteria are similar, but the process can be quicker if the application is supported by the employer.
The requirements and obligations are subject to frequent change so for up-to-date details about all these arrangements refer to the Department of Immigration, Multicultural and Indigenous Affairs website www.immi.gov.au.
Living Away from Home Allowance (LAFHA)
The purpose of LAFHA is to support employees who will be living away from their usual address in the course of their employment. It was originally designed to encourage Australians to move from the larger cities and seek work in the thriving mining towns and primary industries, often based in remote parts of the country. Another group that benefits are overseas recruits on a temporary visa.
LAFHA has an accommodation and food component and essentially means that you are not liable to pay tax on your rental costs up to a certain limit or a portion of your salary deemed reasonable for food costs. With traditionally high tax rates in Australia this can amount to a significant saving.
LAFHA applies for the duration of your temporary visa and can be administered at the discretion of the employer. It can only apply for the duration of the first sponsored visa and ceases as soon as PR is applied for. It is worth noting that LAFHA is under constant review by the Australian Taxation Office and so it is wise to obtain up-to-date advice at the time of your job offer.
Re-qualifying in Australia
The process of re-qualifying in Australia is relatively straight-forward and is similar to the QLTT for lawyers going the other way. Being admitted in Australia is seldom a requirement before securing a position, but in general firms will expect you to re-qualify as soon as is practicable after you arrive. They will assist with this process.
There are four admission dates each year and lawyers from England & Wales usually only need to complete an exam in Australian Constitutional Law, although Equity and Real Property may be required depending on an individual's route to qualification.
More details about re-qualification can be found at www.lawlink.nsw.gov.au.
Superannuation
Australian superannuation schemes are similar to pension schemes, with the key difference that superannuation contributions are mandatory and the responsibility of the employer. Currently the legislation requires a 9% contribution and pending changes mean that from July 1st 2005 employees will be able to nominate the scheme (at the moment employers nominate the scheme).
Firms differ in how they express the remuneration packages they offer. Some will be inclusive of the superannuation element (eg. $100,000 incl.) others will be exclusive of super (eg. $100,000 excl. effectively meaning a package of $109,000). It is a small but importance distinction.
Taxation
It is often the case that UK lawyers are earning income in Australia and at home, but under an agreement between the two governments paying double tax is avoided. Once your tax return is completed for the UK you can simply submit that with your Australian tax return and the tax you have already paid will be taken into account. For more information visit www.ato.gov.au.
Relocation Expenses
In most cases the larger firms will contribute to relocation expenses and the amount varies depending on the firm and the circumstances of each individual. Costs intended to be covered are economy flights, some shipping and short-term accommodation on arrival in Australia. In general these are payable on production of receipts up to a maximum amount. It is worth remembering that in general accommodation in Australia is unfurnished, even without white goods.
How long will the process take?
Obviously this varies depending on individual notice periods and the logistics of relocating across the world. The visa application process takes between two and three months so most of this can take place within the average three month notice period. Firms are realistic about the moving process and time frames of up to six months are not unusual.
Contact Details
Catherine Lewis
Team Manager - Legal
Hays Globalink - Australia & New Zealand
E cathy.lewis@hays.com
