3. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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I am delighted to provide the opening
comments for this well compiled and
much needed guide to the complexities,
opportunities and challenges faced by
migrants, Australian expatriates and
foreign nationals as they consider their
options for investing in Australia. Stacey
Martin has done an amazing job in
assembling a diverse group of
professionals from her Expat Advisors
Community, providing a comprehensive
guide to professional services in all the
relevant areas.
As a financial planner myself in Hong
Kong in the 1980s and 1990s, I have
seen first-hand the challenges faced by
many foreigners as they sought to
understand Australia's tax,
superannuation and social security
systems. It can be hard enough for
Australian residents to navigate without
considering the difficulties faced by
foreigners and expatriates to make
sensible investment decisions to
enhance their long term wealth and
financial security.
Foreword
Since moving to
Australia almost
twenty years ago,
there have been
many changes but
none as marked as
the last five years.
We live in the Asian
Century and as
Australia opens up
to more foreign investment and
migration over the next decade, we will
undoubtedly see further movement of
people, capital and trade between Asia
and Australia.
As a clean, safe and well regulated
environment, Australia has an important
role to play as an attractive destination
for lifestyle and business opportunities.
This guide serves as an ideal starting
point with relevant information and
insights for future investors, migrants
and returning expatriates to consider as
they contemplate their future in
Australia.
Author: David Thomas is the founder of Think Global Consulting which
facilitates business and investment between Asia and Australia.
For more information go to http://bricandchina.com/
or email davidthomas@thinkglobal.com.au
5. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Part I
Obtaining the VISA
Migration Agent - prepare, lodge and
manage SIV Applications 07
Migrant Banking - open an Australian
bank account prior to arrival 09
Wealth and Investment Advice -
provide advice on SIV Complying
investment portfolios 11
Managed Funds - structure for SIV
Complying investments 13
Tax Compliance - Australian tax file
number & annual tax returns 15
Estate Succession - what powers of
attorney and transfer on death 19
Interpreters and Translation -
understand advice and documentation
for non-English speakers 21
Part II
Investing in Australia
Buying a home - where and what to
look for 23
Banking Facilities - relationship
manager for personalised banking and
funding needs 25
Tax Compliance and Business
Advisory - business advice, tax
planning and furtherinvestments
27
Legal Advice - Commercial, property,
and cross jurisdictional 29
Buying a Business - How to go about
purchasing business 31
Valuers - for buying property or
businesses 33
CONTENTS
Part III
Moving to Australia
Relocation Services - Concierge to
arrange housing, removals and other
personal services 35
Health Insurance - for Australian
medical expenses 37
Private Schools - options for children's
education 39
Family Law - Marriage and divorce laws
in Australia 41
Culture - Appreciating Australia's
multicultural society 43
About the Founder 45
Acknowledgements and Disclaimer 47
7. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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The Significant Investor Visa (SIV) is designed to
attract wealthy individuals to contribute to
Australia’s economic prosperity. Investment and
innovation visas have been around for some
time, including the US, Canada, Hong Kong,
New Zealand and some European countries. It
was introduced in Australia on 24th November,
2012.
With good climate and a relaxed lifestyle,
Australia is an enviable place to live and work.
It’s highly regulated and compliant financial
services sector provides comfort for business
owners and investors. For those considering
their future options, the SIV program provides a
pathway to gain Australian residency with no
language requirement, relaxed age and other
criteria.
The SIV nominations are state based, and once
the applicant is invited they must invest
AUD5,000,000 into SIV Compliant investments
for 4 years. At the end of this period permanent
residency is granted, or the temporary Visa can
be extended for a further two years twice.
As at 31 December 2014, there had been 2001
expressions of interest lodged, 1721 invitations
for State nomination, 1462 primary applications
issued and 595 primary visas granted. The
applications are coming predominantly from
China, 90%, Hong Kong, 3%, with some from
South Africa, Malaysia, Taiwan, Japan and the
UK. Half of the applications have been going to
Victoria, one third to NSW and the balance to
Queensland, Western Australia and South
Australia.
What is the Significant Investor Visa?
In looking to migrate to Australia there are a
multitude of considerations as to the most
appropriate pathway based on personal
circumstances, family and business objectives.
The aim of this booklet is to provide a guide to
navigate the local market and legislative
framework. From the initial SIV Application
process involving migration agents, banking,
investment and tax compliance, to future
opportunities to purchase a home, other
properties and business interests, and settling
into the Australian way of life. It is essential that
SIV Applicants obtain the right advice, from the
right professionals at the right time.
Stop Press: The government has recently announced
changes to the investment framework to align the
criteria for eligible investments with the Government's
na onal investment priori es. The changes are
designed to a ract investment into more dynamic
areas of the economy, including innova on and high-
growth companies such as venture capital and small
emerging companies. Note any changes to the current
framework, which includes government bonds and
funds inves ng in cash and term deposits, will not
come into effect un l 1 July, 2015.
A new category, Premium Investor Visa (PIV), would
require a minimum investment of $15 million with an
accelerated 12-month pathway to ci zenship. It will
be more flexible in terms of investment class, looking
to a ract excep onal business people to Australia,
including high-calibre entrepreneurs.
For more information go to the Department of
Immigration and Border Protection – Significant
investor Visa:
http://www.immi.gov.au/visas/pages/188.aspx
Author: Stacey Martin is Senior Wealth Advisor with NAB Private Wealth,
and specialises in providing personal financial advice to Australian
expatriates and Significant Investor Visa applicants.
More information on http://privatewealth.nab.com.au/nabprivate
or contact Stacey on +61 (0) 2 8220 5110
or stacey.martin@nab.com.au
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What is the role of a Registered Migration Agent
(RMA)?
There are over 160 different visas that a non-
Australian citizen may apply for. It is the role of the
Registered Migration Agent to determine which visa
is most appropriate for the applicants individual
circumstances.
The Significant Investor Visa (SIV) is a new visa
category which sounds simple but in practice can
be quite complex. An RMA will ensure that the
candidate meets all the prescribed regulations for
the approval of the visa application and maximise
the likely success of the application.
What is the SIV Application process?
There are two stages to the Business Innovation
and Investment VISA process:
• Stage 1: Temporary Visa - (Provisional) - subclass
188
This is a temporary residency visa which is valid for
four years from the date it is granted and requires
the following:
- Invitation: from the Minister to apply for SIV
- Nomination: by a State or Territory ment agency
- Investment:AUD5,000,000, into complying
investments
The applicant must also have a genuine and
realistic commitment to, reside in the nominated
state, live in Australia for at least 160 days over four
years during the provisional visa period and
continue their business and investment activity in
Australia after the complying investment matures.
Part I – Obtaining the Visa Application
Migration Agent
• Stage 2: Permanent Visa (Permanent) - subclass
888
This is a permanent visa and applicant must meet
the residency requirements.
What are SIV Complying Investments?
The AUD 5,000,000 must be legally acquired,
unencumbered, and used to make the complying
investment in Australia for at least four years in the
following asset classes:
1. Direct investment into a qualifying private
Australian companies, where the applicant has an
ownership interest
2. Commonwealth, state or territory government
bonds
3. Eligible managed funds in Australian assets
including infrastructure, cash, bonds, equity,
hybrids or and listed corporate debt or term
deposits issued by Australian financial institutions
4. Real property in Australia
5. Australian agribusiness
6. Annuities issued by an Australian registered life
company
Use of derivatives for portfolio management is
limited to 20% of the fund value.
Regulations and Compliance
An RMA is a person who is registered with the
OMARA (Office of the Migration Agents
Registration Authority),has studied Migration Law
and is obligated to ensure that their knowledge is
up to date through Continuing Professional
Development through an industry body such as
Migration Alliance. Migration agents charge a fee
which will be quoted prior to commencement of
work on the application.
Author: Liana Allan is the founder of the Migration Alliance industry
body for migration agents in Australia.
To find a registered migration agent go to:
http://migrationalliance.com.au/find/rma/
or contact Liana on liana@visacorp.com.au
11. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why do you need a bank in Australia?
Looking to get set up in a new country, one of the
first things to get orgnised is a bank account as a
gateway to other financial and lifestyle services.
What can you do before arrival?
A number of financial institutions offer account
opening up to 12 months prior to arrival. Some will
not require an Australian address and you can
simply apply on line.
How do you start operating the account?
When you arrive in Australia, upon presenting
appropriate identification documents, you can start
using your account for withdrawals and other
transactions. Your financial institution may also offer
you credit and ATM cards that they will organise
before you arrive. You may want to ask whether
your financial institution offers migrant bankers,
personal, private or business bankers. Specialists will
connect you with other business and lifestyle
services.
Migrant Banking
Regulations and Compliance
Banks and other financial institutions in Australia
are regulated by the Australian Prudential
Regulation Authority (APRA).
When opening a bank account, identification
documents such as passport, Australian Drivers
license or other forms of photo ID, translated into
English, are required. Australia has strict
requirements under Anti-Monetary Laundering
(AML) and Australian Transaction Reports and
Analysis Centre (AUSTRAC).
Author: Paul Bailey Director - Migrant, Expatriate and International Student
Banking Australia NAB Private Wealth.
For more information about pre arrival banking services,
please visit www.nabgroup.com/migrantbanking
13. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why do you need a Wealth Advisor?
A wealth advisor can assist you to access financial
products and investments to achieve your financial
goals.
What does a Wealth Advisor do?
A wealth advisor works with individuals to
understand their personal goals and lifestyle
objectives, and develops a wealth strategy to
enable them to make smart financial decisions to
achieve those objectives.
Areas of advice include cashflow planning, debt
management, asset allocation, investment portfolio
management, superannuation and personal
insurances.
Working with accountants and lawyers. Wealth
advisors also provide assistance on structures such
as family trusts, estate and succession planning.
How is the portfolio constructed for an SIV
Applicant?
As the objective of the SIV program is to invest in
Australia, asset classes are limited to Australian
cash, bonds, shares and property.
These investments must be held in a managed
investment fund. Other compliant investments
Wealth and Investment Advice
include state government bonds and some active
business interests.
Whilst the range of assets is limited and some
states have specific requirements, it is still
important the applicant undergoes a risk profile
assessment to assist in constructing an appropriate
portfolio in line with their risk appetite and
objectives.
The investment solution is designed taking these
into account, cognizant of the SIV scheme
requirements, and implemented once the VISA is
granted. The portfolio is then monitored on an
ongoing basis to ensure it continues to remain SIV
compliant, and takes into account market
conditions and the applicant's investment
objectives.
Regulations and Compliance
Wealth advisors are authorised by Australian
Financials Services Licensees (AFSL) and will provide
you with a Financial Services Guide (FSG). A fee is
charge for preparation of the Statement of Advice
(SoA) and ongoing service. Details of investment
manager fees and administration costs are set out
in the SoA.
Wealth advisors generally have an Approved
Products List (APL) from which to select funds that
have undergone due-diligence including ratings by
specialist Research houses.
Author: Stacey Martin is Senior Wealth Advisor with NAB Private Wealth,
and specialises in providing personal financial advice to Australian
expatriates and Significant Investor Visa applicants.
More information on http://privatewealth.nab.com.au/nabprivate
or contact Stacey on +61 (0) 2 8220 5110
or stacey.martin@nab.com.au
15. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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What is a managed fund?
Managed funds pool investors’ money to provide
professional investment expertise in a chosen
market. The owner of the underlying assets is the
fund manager and the investor owns a number of
units in the fund. Units are issued via a Product
Disclosure Statement (PDS). The funds unit price is
valued regularly by the fund manager, who divides
the net value of the assets by the number of issued
units.
How does a managed fund invest?
Investments can be in a particular asset class, such
as Australian shares, fixed interest or property, or
diversified across a number of sectors.
Within a sector such as Australian shares, the
manager may target large or small companies,
shares with high dividends or track a specific
market index.
An active managed fund aims to outperform the
market through buying and selling securities that
they think are going to do better than others. They
suit investors that want to focus on certain sections
of the market or want more control over the assets
they invest in.
Passive managed funds simply buy a portfolio of
assets that replicate an index, such as the All
Ordinaries for Australian shares. They are a low cost
alternative to an actively managed fund.
Managed Funds
What are the potential returns from managed
funds?
The returns on managed funds to investors reflect
movements in the underlying assets. Defensive
assets such as cash and bonds generally provide
the lowest returns, while growth assets such as
shares and property provide potentially higher
returns over the longer term, but with volatility or
variation in returns over shorter time periods.
Income - for cash this is the interest rate, and for
bonds the coupon which can be set at the outset
or vary with the general level of market interest
rates. Shares pay out a portion of the underlying
company profits in the form of dividends, whilst
property distributions reflect rental income net of
costs.
Capital Gains - shares, property and bond funds
can go up and down as they are re-valued on a
regular basis. The investors gain or loss in value is
crystalised when the asset is sold. Active funds may
distribute realised gains at the end of the financial
year as part of the regular distributions.
Regulations and Compliance
Australia is regarded as one of the most stringent
regulatory regimes in the world. Managed funds are
regulated by the Australian Securities and
Investment Commission (ASIC) and the Australian
Prudential Regulatory Authority (APRA) for
superannuation. The fund manager or 'responsible
entity' must be a registered Australian public
company and hold an Australian financial services
(AFS) licence. The responsible entity is regulated by
the Corporations Act.
Author: Stacey Martin is Senior Wealth Advisor with NAB Private Wealth,
and specialises in providing personal financial advice to Australian
expatriates and Significant Investor Visa applicants.
More information on http://privatewealth.nab.com.au/nabprivate
or contact Stacey on +61 (0) 2 8220 5110
or stacey.martin@nab.com.au
17. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Are SIV Applicants liable for tax in Australia?
Australian resident individuals and companies are
required to pay tax on their worldwide income to
the Australian Tax Office (ATO). However, individuals
holding a temporary resident visa such as the SIV
are only required to pay tax on income from
Australian investments and worldwide employment
income. They are not obligated to report or pay tax
in Australia on investments outside Australia.
Ideally temporary resident visa applicants should
meet early in the process with an Australian Tax
Agent who has cross jurisdictional experience, and
understands the scope of taxation for temporary
residents.
Tax Compliance
How much tax is payable?
If you are an Australian resident for income tax
purposes, the resident tax rates apply- see below
for tax rates to 30 June 2015. In addition you may
be liable to an additional 2% Medicare Levy and
possibly a Medicare Levy Surcharge.
Holders of a temporary resident visa who are also
considered to be a resident of Australia for income
tax purposes are taxed in Australia on Australian
sourced investment income plus worldwide
employment income.
Taxable income AU$ Resident Tax Rates
$0 - $18,200 Nil (pro-rated if less than 1 year)
$18,201 - $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000
The above rates do not include the Medicare Levy, currently 2% of taxable income. Some temporary
residents may be exempt from paying the Medicare Levy if they are from a country which does not
have a Reciprocal Health Care Agreement with Australia. Source:
https://www.ato.gov.au/individuals/income-and-deductions/how-much-income-tax-you-
pay/individualincome-tax-rates/
Taxable income AU$ Non-Resident Tax Rates(Property)
$0 - $80,000 32.5c for each $1
$80,001 - $180,000 $26,000 plus 37c for each $1 over $80,000
$180,001 and over $63,000 plus 45c for each $1 over $180,000
Temporary resident visa holders who are not present in Australia for sufficient time to be considered a
resident of Australia for income tax purposes will be considered a non-tax resident of Australia.
Withholding tax applies to most Australian sourced passive income (e.g. bank interest and dividends)
of non-residents, typically 10% for interest or 15-30% for dividend income. However in the case of
Australian taxable property, the above scale applies.
19. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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When is tax paid?
Australia’s financial year ends on 30th June with tax
lodgment due by 31st October. However, by using a
Registered Tax Agent to prepare and lodge the
annual tax return, not only will you ensure you
meet your Australian tax obligations and obtain all
relevant concessions and deductions, the lodgment
date can also be extended up to May of the
following year.
What happens when permanent residency is
granted?
On grant of permanent residency, a taxpayer is
deemed “to acquire” their worldwide assets for
market value at that date. It is generally
recommended that a formal valuation of assets be
obtained at that time for Australian Capital Gains
Tax (CGT) purposes. When a temporary resident visa
holder applies for permanent residency of Australia,
they are subject to Medicare Levy and Medicare
Levy Surcharge (as applicable) from that date. From
the date that a temporary resident is granted
permanent residency, they are taxed in Australia on
their worldwide income and gains.
Tax Compliance
How are Australian tax agents regulated?
Registered Tax Agents must be registered with the
Tax Practitioners Board (TPB) and are subject to
strict regulations. Accounting firms must adhere to
certain standards as regulated by the Australian
Accounting Standards Board (AASB). Accounting
firms and tax agents will generally charge fees on a
time-cost basis, and a quote can be requested prior
to the preparation of the return. The cost of
managing your tax affairs is generally tax
deductible.
Author: Alison Wood is a Principal in the Private Clients team at Pitcher
Partners Sydney with over 20 years’ experience in assisting
internationally mobile executives and families manage, en-hance and
protect their personal wealth. Go to the Pitcher Partners Sydney
website at www.pitcher.com.au or contact Alison on
+61 (0) 2 9228 2416 or awood@pitcher-nsw.com.au.
21. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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If something happens to you, have you
considered what would happen to your SIV
investment portfolio in Australia?
The Chinese are well known for their strong family
values and high regard for peace and harmony
within a family. It is therefore surprising that many
do not consider Estate Planning.
Estate Planning refers to the implications and
treatment of your Australian assets if you become
unable to manage your affairs through loss of
physical or mental capacity or die. Australian assets
could include bank accounts, managed funds,
property and business interests in your personal
name, and the passing of your control in structures
such as a Trust or Company.
Who looks after your portfolio if you are sick or
injured?
You can appoint an “Attorney” to manage your
Australian financial and legal affairs by signing an
Australian Enduring Power of Attorney. This person
will have the legal right to act on your behalf if you
lose capacity.
If there is no Enduring Power of Attorney in place,
your family will need to make an application to an
Australian Government body to become your
"Financial Manager". This could take many months
to finalise, leading to: a) potential economic loss if
unable to make decisions on business dealings and
investments, or b) a dispute between your family as
to whom in the family should be appointed.
Estate Succession
What happens when you pass away?
Leaving a valid Will - ensures your Estate Planning
intentions are followed, providing certainty for you
and your beneficiaries. It is wise to make a Will in
each jurisdiction in which you hold assets.
If you don’t have a valid will - depending on the
type of Australian asset, then either the law of:
a) your nationality;
b) your domicile;
c) your habitual residence; or
d) the jurisdiction in which the asset is located will
determine:
- who has the right to administer your Australian
Estate?
- who becomes the beneficiaries of your Australian
Estate?
- tax implications, if any, for either your Estate or
your beneficiaries?
How can you get appropriate documents drafted
in Australia?
You should obtain specialist Estate planning advice
and put in place Australian Estate Planning
documents. Such documents are subject to strict
legal requirements which if not met, can deem a
document invalid. It is therefore imperative that you
obtain legal advice from an appropriately qualified
lawyer.
If you do not have a suitable representative to
nominate as your Attorney or Executor for your
Will, you can appoint an independent Trustee
company, such as National Australia Trustees
Limited.
Author: Kate Gould is a Senior Associate Estate Planning Lawyer at
National Australia Trustees Limited (“NAT”), a subsidiary Trustee
company of the National Australia Bank. Please see the NAT website at
http://www.nab.com.au/personal/investments/national-australia-trustees
or contact Kate on +61 (0) 2 8908 6126
or kate.gould@nab.com.au
23. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why do you need language capabilities?
For SIV Applicants there is no requirement to speak
English, therefore for many applicants interpretation
and translation services will be required. This
ensures they are able to understand the
information provided by the various professionals,
ask questions and make informed decisions.
What is the difference between interpretation
and translation?
An Interpreter – deals with the spoken word.
Having a third party in meetings and telephone
conversations provides immediate translation of the
conversation for each participant. The two types are
Consecutive interpreter (CI) and Simultaneous
interpreters (SI). CI is the interpreter speaks after
the source language speaker has finished speaking
and SI is the interpreter renders the message in the
target language while the source language speaker
continuously speaks. CI is widely used in small to
mid-sized meetings while SI is often used in big
conferences. The accuracy of CI is usually higher
than SI, while SI due to its nature saves 50% time
than CI.
A translator – deals with the written word. There
are many documents provided from initial
engagement, to provision of written advice,
research and reports to ongoing dialogue via
written form. It is important when reviewing or
signing any document that it is explained in the
client’s native language to ensure complete
understanding. People refer to the documents as
reference communication proof, most of the time
translation requires much more accuracy and
importance on phraseology than interpretation.
Language – Interpreters and Translators
How should you access these skills?
Ÿ Bring your own – many SIV Applicants are
happy to bring along a trusted friend or family
member. However, they may not be familiar
with the process, legal or financial terms.
Ÿ Have a colleague come along – a professional
colleague who also understands the financial or
legal environment can be useful, particular
where different professionals are working
together such as a migrant or private banking
manager translating for a wealth advisor as
they have an appreciation of the process and
financial advice being provided.
Ÿ Hire a professional – this provides a level of
independence for both parties and relieves
pressure on family members or colleagues.
However it is still important that they have
some level of understanding of financial terms
to minimis the risk of misunderstandings.
Regulations and Compliance
Translators and interpreters should be appropriately
qualified and a member of the National Accredited
Authority for Translators and Interpreters Limited
(NAATI) in Australia. While in China this market is
not as well regulated as in Australia, there are a few
authoritative certificates that different professionals
hold including CATTI (China Accreditation Test for
Translators and Interpreters), NAETI (National
Accreditation Examinations for Translators and
Interpreters), Certificate of Shanghai Interpretation
Accreditation Test and Test for English Majors.
Author: Janey Lee, China Manager at NIHAO GLOBAL provides tailored
solutions for companies across the globe entering the Chinese market.
Services include: Interpretation, Translation, Research, Personal Assistants,
contractors and local boutique Tourism Services.
For more information go to: http://www.nihaoglobal.com/
25. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
23
Australian housing is among the most expensive in
the world. Sydney has the most costly, with the
median house price pushing through the A$840,000
barrier in 2014, more than 15% above the national
median house price, while apartment median prices
passed $570,000. The expectation of capital growth
is one of the main reasons foreign buyers choose
Australia as the country in which to invest in
property.
Can an SIV Applicant buy property in Australia?
A holder of a temporary visa can buy a home to
live in. All applications from must be reviewed by
the Foreign Investment Review Board (FIRB), and
approval is usually granted if the buyer is residing
in Australia and wants the property to live in. FIRB
approval is also required for commercial and non-
residential property purchases of A$5million or
more. Off-the-plan apartment and townhouse can
be sold to foreign investors without FIRB approval
as long as the property developer applies in
advance for FIRB permission.
Note that under the Significant Investor Visa
regulations, investments in property are not
considered complying investments that will count
towards visa approval.
10 Steps To Buying Property in Australia
1. Finance - get approvals in place including 10%
deposit
Part II – Investing in Australia
Buying a Home
2. Research - preferred areas to suit family lifestyle,
education and work
3. Search - sales in preferred suburbs via
domain.com.au or realestate.com.au. A buyer's
agents can find the property and save time and
money
4. FIRB Approval - must be granted before the
purchase can go ahead
5. Contract of Sale - includes title search, plans,
any covenants, zoning certificate from the Land
Titles office and local council
6. Building Inspections - building and pest
inspections typically conducted before signing
7. Sale by auction - requires the buyer or their
agent to bid for the property
8. Offer and acceptance- purchaser signs contract
and pays a deposit
9. Pre-settlement- inspection of the property
carried out
10. Settlement - usually six weeks after contracts
are exchanged.
What costs are involved?
Ÿ Stamp Duty - depends on the property's value
and follows a sliding scale. For example in NSW,
stamp duty on a A$ 1 million property is
approximately A$40,000.00
Ÿ Registration Fee - paid to the Land Titles
Office for the transfer of ownership.
Ÿ Conveyance Fee - paid to solicitor or
conveyancer for the documentation necessary
for a property purchase.
Author: Anne McGoverne, BA, BSc (Architecture), MA (Heritage
Conservation) is a licensed Buyer's Agent with Relocate East which
specialises in harbourside and beach property in Sydney's
eastern suburbs. Contact Anne on anne@relocate-east.com.au
or go to www.relocate-east.com.au
27. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why do you need a bank in Australia?
If you are investing or planning to buy assets in
Australia you need a local financial institution to
facilitate transactions and the various payments.
Look for a bank that will offer you the right options
and help you to make informed decisions based on
a detailed understanding of your financial situation,
objectives and risk appetite.
It is important to build a relationship with the most
appropriate specialist for your needs, from private
banking, business lending or agribusiness specialists
before setting up any borrowing facilities.
What are the types of Banking Facilities?
1) Deposits- banks have different account options
for deposit taking purposes ranging from
transaction accounts, to savings accounts and
investment accounts. Different accounts attract
different fees and pay different interest on
savings(some accounts will not pay any interest).
More importantly, you’ll need to consider the
different ways that the accounts work.
2) Transaction accounts - flexible day-to-day
banking and transactions, interest may or may be
not been paid.
3) Saving accounts - transactional savings accounts
that may have cheque and card facilities and
usually pay interest. Access via ATM, internet
banking, telephone, banking, EFTPOS or any branch.
4) Term deposits – pay a fixed interest rate for
Banking Facilities
terms ranging from 30 days to 5 years with limited
access to funds.
5) Consumer Lending - choosing the right loan to
suit your property investment will help you to
achieve the best results without placing
unnecessary constraints on your finances.
The different types of loans available are:
- Principal and interest: each loan installment will
include interest plus a payment toward reduction of
the principal loan amount, with a choice of term
(often up to 25 years).
- Interest only: generally used by investors where
the interest is tax-deductible, with a choice of terms
(often up to 5 years).
- Line of credit: a credit facility secured against a
property where you may withdraw funds up to your
limit anytime. Interest is charged on the amount of
funds used rather than the total credit limit.
Lenders may offer fixed or variable interest rates.
Regulations and Compliance
Australian Securities and Investments Commission
(ASIC) is the national regulator for consumer credit
and leases under the national credit legislation. The
National Credit Code contains requirements in
relation to terms and enforcement of credit
contracts and consumer leases. The National Credit
Act contains requirements for credit providers to be
licensed and to comply with responsible lending
requirements.
Author: Shannon Kong, Director Asia Strategy with NAB Private Wealth.
Go to NAB Private Wealth at http://privatewealth.nab.com.au/nabprivate
or contact Shannon on +61 (0) 477 331 892
or Email: shannon.p.kong@nab.com.au
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Tax Planning
As outlined in the section on tax compliance,
Australian resident individuals and companies are
required to pay tax on their worldwide income. As
such, it is critical to make sure an applicant is
paying the right amount of tax in the optimal way,
whilst ensuring income distribution and wealth
protection strategies are in place.
Obtaining professional tax structuring advice
upfront is essential. A tax structuring expert will
help:
1. Define your objectives
2. Understand your income earning potential
3. Clarify your worldwide asset base
4. Define your income distribution options
5. Understand the various structures available
according to the key points above, which may
include:
· Trusts (discretionary/unit)
· Companies
· Other suitable structures
6. Outline your ongoing record keeping and
management accounting requirements
Following this, the structure will be created and all
relevant documents lodged to enable ongoing tax
compliance to take place.
Tax Planning and Business Advisory
Business Advisory
Once settled, it is quite possible the applicant will
look to expand their investment portfolio by
making further investments in Australia.
These investments may take the form of:
Ÿ Indirect investment (through managed funds,
property trusts etc.)
Ÿ Direct investment (in shares etc.)
Ÿ Buying an existing business, starting a new
business or expanding an existing business
To ensure goals are obtained, ongoing specialist
investment and taxation advice should be sought.
In the event that an applicant wishes to expand
their portfolio through direct investment in a
business (existing or new) it is important to seek
professional help from advisers who can give
guidance with regard to legislative requirements,
competitive issues and industry dynamics in
Australia.
Ÿ Business structuring
Ÿ Business strategy and planning
Ÿ Market and industry research
Ÿ Deal selection
Ÿ Idea feasibility studies
Ÿ Pre and post deal advisory, including due
diligence
Author: Dan Pironti of Shine Wing Australia helps Chinese businesses
in Australia. Shine Wing is the largest independent accounting firm
in China. For more information go to: http://www.shinewing.com.au/
or email: dan.pironti@shinewing.com.au
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SIV investors and anyone looking to invest in
Australia obtains Australian legal advice. The
Australian legal system is complex and there are
specific and complex rules relating to foreign
investment.
An Australian lawyer can help SIV and other
investors to identify and set up the most
appropriate legal structure for their investment and
ensure this complies with Australian legal
requirements. If an investment does not have the
correct legal structure from the outset, it may be
difficult and costly to unwind and rectify this.
Australian legal requirements that foreign
investors should know about
Foreign investment rules - Foreign investment in
Australia is regulated by the Foreign Acquisitions
and Takeovers Act 1975 (Cth). Foreign investors
require approval prior to making certain
investments in Australia. Approvals are handled by
the Federal Treasurer who is advised by the Foreign
Investment Review Board (FIRB). Applications which
are deemed as being inconsistent with the national
interest may be blocked, or approved only subject
to conditions. You should obtain advice on these
restrictions, and assistance with liaising with FIRB to
obtain the necessary approvals.
Buying real estate-real estate in Australia is
governed by multiple state acts (for example, the
Real Property Act 1900 (NSW) and the
Conveyancing Act 1919 (NSW)). Land interests
should be properly registered. There are a number
of regulatory procedures and requirements which
must be carefully navigated to enable correct
registration of interests in the land register and
ensuring all agreements involving interests in real
Legal Advice
property are made in writing.
Setting up a business in Australia - Businesses in
Australia can be conducted through a range of
legal structures (e.g., sole traders, corporations,
partnerships, trusts, and an Australian branch of a
foreign company). Investors should obtain advice
on the optimal business structure, assistance with
setting up these structures, help to ensure proper
compliance with the relevant laws (such as the
Corporations Act), and help to ensure any structure
takes into account that investor’s tax planning
needs. A new business may need to obtain an
Australian business number, register business
names and any relevant trademarks, obtain
business licenses permits and attend to tax
registrations.
Asset protection - For high net worth individuals
and families, asset protection for their worldwide
assets is often one of the most important
considerations when setting up their investment or
business in Australia. There are a number of
protective legal structures and strategies that can
be used, which may also be effective tax planning
tools.
Contracts and agreements
In Australia, it is important for all commercial
dealings to be formalised by written legal contracts,
which are properly drafted and negotiated by
Australian lawyers. A properly drafted contract
which clearly sets out the parties’ rights and
obligations is more likely to safeguard the foreign
investor against future disputes and unnecessary
costs.
Author: Jennifer Yeo is a Special Counsel in the Private Advisory practice at
Mills Oakley Lawyers. Jennifer is experienced in advising high net worth
individuals and families, both in Australia and those coming to Australia,
on the legal and tax requirements of investing, or carrying on business in Australia.
For more information, go to www.millsoakley.com.au
or contact Jennifer on +61 2 8289 5881 or jyeo@millsoakley.com.au
33. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why consider investing in an Australian
business?
Australia has a very diverse and stable economy,
reflecting the quality of its businesses on the world
stage. Foreign nationals who qualify for a
Significant Investor Visa can avail themselves of any
portion of their minimum investment in either
established or new businesses (with some
restrictions).
What is the business landscape in Australia?
According to the Australian Bureau of Statistics
there are 2.1 million businesses in Australia,
concentrated across New South Wales, Victoria and
Queensland. Around 6,000 businesses or less than
1% employ more than 200 people, and of the rest:
Ÿ 60% do not employ
Ÿ 25% employ 1 to 4 people
Ÿ 11% employ 5 – 19 people
Ÿ 4% employ 20 to 199 people
How can a potential buyer obtain access to
Australian businesses?
Business Brokers - professionals with state licenses
to act as business agents in transferring businesses
to investors. Generally will act as agents for small
and medium sized businesses.
Boutique corporate advisers - can also help
investors obtain access to businesses seeking to
Buying a Business
raise capital.
Some foreign investors seek to purchase part of a
small or medium size business in Australia, and in
doing so, negotiate an employment arrangement,
satisfy the Significant Investor Visa requirements
and bring contacts and knowledge of external
markets to the business. Migration agents will often
be able to provide visa applicants with references
to business brokers and boutique corporate
advisers.
Australia has a sophisticated securities exchange
system. The Australian Securities Exchange (ASX) is
the primary entity with which companies may list
publicly. Traditionally, share trades on the ASX were
handled manually by stockbrokers, but with the rise
of electronic trading, trades now overwhelmingly
take place on the internet via electronic brokers.
Regulations and Compliance
Foreign investor acquiring a substantial interest in a
business, valued above $248 million (as of
November 2014), is required to notify the Foreign
Investment Review Board (FIRB).
Author: Craig West runs Succession Plus, Australia's largest succession
planning specialist and manages exit plans end- to-end for businesses.
For more information go to: http://www.successionplus.com.au/
or contact: cwest@successionplus.com.au
35. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why do you need a Valuation?
When buying an asset such as a property, business
or even artwork obtaining an independent valuation
ensures you know the real value of the asset and
that the price paid is appropriate.
A formal property valuation differs from an
estimate or appraisal provided by the selling agent
as it determines the actual value of a property from
an independent and impartial point of view.
What is a valuation used for?
Tax - many assets in Australia are subject to stamp
duty on the purchase price, and any increase in
value may incur capital gains tax when the asset is
sold. Having a formal valuation ensures appropriate
taxes are paid in line with government regulations.
Insurance – by taking our insurance for
replacement costs, in the event of fire, theft or
other risks, the property may be returned to its
original condition.
Valuations
Lending - banks generally require a valuation when
lending for property purchases, although
sometimes they will use“drive by”values instead of a
full formal valuation.
How is the asset value determined?
The valuer visits the property, and then applies
specific methodologies to come up with a final
value. The written valuation report not only
provides detail of the asset, but other associated
components such as building infrastructure, as well
as providing analysis of comparable assets and
highlights anything you should be aware of so you
can make informed decisions.
Regulations and Compliance
A formal valuation can only be provided by a
licenced valuer who has undertaken the necessary
education and training. In NSW the Department of
Fair Trading is responsible for registration of valuers.
A written report will be produced, and a fee
charged. Be aware of valuers who also act as selling
agents to avoid any conflict of interests.
Author: Ian Hyman is CEO of Hymans valuers who have a team of over 100
consultants around Australia and New Zealand. They provide all types of
business, property, plant and equipment valuations.
To contact Ian Hyman call +61 (0) 416 151 597
Email ianhyman@hymans.com.au or go to http://www.hymans.com.au/
37. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why use a Relocation Service?
Destination service providers can do all the
research and background checks using knowledge
of local areas, real estate, schooling, communities,
networking groups and other services. This provides
valuable support and insights on the ground for
those looking to relocate. The benefit is to make
the move as stress free as possible and enable
individuals and families to get settled more
efficiently.
When should you engage a relocation service?
You should consider engaging a relocation service
once you are considering a move to assist you with
your pre-relocation visit. The consultant can take
you on a ‘look/see’ or orientation so that you get
an idea of where and what will be most appropriate
for your personal family situation.
How can they help?
There are a range of services available to assist with
Part III – Moving to Australia
Relocation
a smooth settlement:
Ÿ Housing - whether renting or buying, based on
your requirements, suitable properties can be
sourced, appointments made with agents, and
accompany you to each viewing to assist with
the whole process
Ÿ Schooling - source and make appointments
with appropriate schools in areas that match
your housing needs. Assist in the whole
enrolment process including removalist to
appointments.
Ÿ Manage the move - arrange for most
appropriate revival firm for your needs sourcing
competitive quotes and working through the
entire process.
Ÿ Concierge services - temporary
accommodation, setting up the home,
assistance with cars, drivers licence, white
goods, Medicare and other useful advice and
guidance.
What are the costs?
Relocation services are charged as a fee for service
basis based on the allocated number of hours for
the project.
Author: Julie Hanley is Principal, Relocation Specialists and has a team
of consultants ready to assist you with your move.
To contact Julie please email to julieh@relocationspecialsits.com.au
or go to: www.relocationspecialsits.com.au
39. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Should you take out health insurance in
Australia?
The Australian Government encourages all pro-
spective visitors and residents to have adequate
health insurance cover while staying in Australia. In
addition to meeting the health requirements of
your visa application, certain temporary visas might
also require evidence of adequate health insurance
for the duration of your stay in Australia.
The Australian Government has agreements with
certain countries, called Reciprocal Health Care
Agreements (RHCA). These agreements enable
residents of those countries to receive Medicare
benefits when visiting or working in Australia. There
are no agreements currently in place with countries
in Asia.
Can you apply for private health insurance
before arriving in Australia?
You can take out overseas visitors cover before
arriving in Australia. The cover will start from the
date you provide as your arrival date, with any
waiting periods commencing when you get here.
Health Insurance
How do you choose an insurer?
A number of private health and general insurers
provide health cover for overseas visitors. Benefits
available, membership costs and eligibility can vary
between insurers.
Bupa is a leading healthcare organisation and has a
wide range of affordable, high quality private health
insurance products, and is committed to helping
international clients understand the Australian
healthcare system and choose the appropriate
cover to meet their personal circumstances.
Regulations and Compliance
Private Health Insurance in Australia is governed by
the Private Health Insurance Act 2007. For more
information on the requirements for visa applicants
go to: http://www.immi.gov.au/all-forms/health-
requirements/
Author: Fernando Tostado is the Migration Channel Manager
at Bupa Australia.
Check out www.bupa.com.au/overseas,
contact Fernando at Fernando.tostado@bupa.com.au
or call Bupa directly on +61 (0) 134 135 or +61 (0) 3 9487 6400
from outside Australia.
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Why study in Australia?
Australia is a popular secondary education
destination for international students. In addition to
providing high- quality, internationally recognised
education, Australia also provides a safe,
comfortable and multicultural environment. An
Australian education aims to provide students with
the skills for future study and employment
anywhere in the world.
Example of a leading secondary school
Wesley College was in 2013 the top International
Baccalaureate (IB) School in Victoria and the top
coeducational IB school in Australia. It has three
campuses in Melbourne, Elsternwick, Glen Waverley
and St Kilda Road, which have enriched the lives of
thousands of young people in its 149-year history.
Past students include two Prime Ministers, 21
politicians, 35 Olympic athletes, 13 Rhodes Scholars,
five Supreme Court judges, plus many other
prominent Australian figures.
The college offers a broad curriculum, balanced
approach to learning, a concern for the whole
student and the provision of opportunities for all
Private Schools
young people to know, to do, to live with, to be
within an innovative and caring environment.
International students from all backgrounds,
countries, religions and cultures study at Wesley
because of its excellent educational reputation,
facilities and student support.
Many graduates from the College continue their
studies at major Australian universities and others
choose international universities including Oxford,
Cambridge and Harvard. Student Support Services
include International Student Coordinators at each
campus carefully selected and monitored home stay
accommodation and English language preparation
program.
What are the requirements to study in Australia?
To study in Australia you need to have a student
visa, offer letter from the educational institution,
and financial means to meet fees which vary widely.
Further details on
http://www.studyinaustralia.gov.au/global/apply-to-
study
Author: Carolyn Roney is International Admissions
Manager at Wesley College.
Check out www.wesleycollege.net
or contact Carolyn +61 (0) 3 8102 6617
or carolyn.roney@wesleycollege.net
43. SMOOTH ROAD TO TRAVEL CHINA TO AUSTRALIA
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Why you need to know about Australian family
law?
Relocating countries can place family relationships
under strain. An unfortunate and unintended
consequence of your move to Australia could be
that any divorce or relationship breakdown is
determined by Australian family law.
The rights and responsibilities arising under
Australian law concerning divorce and separation
surprise many people already resident in Australia.
For example, you don’t need to be married to have
a “spouse” under Australian family law.
What can you do?
Asset planning including from a family law
perspective is a prudent way to understand your
rights and obligations as well as minimise the stress
and costs of any financial claims that may arise
under Australian family law.
How does it work?
In the event of the breakdown of a marriage or de
facto relationship the Family Court of Australia
and/or the Federal Circuit Court of Australia can
determine various legal matters arising as a
Family Law
consequence of the relationship breakdown. These
legal matters include: care arrangements for
children; divorce (legal end of the marriage
contract); the redistribution of capital assets
(property settlement); and providing for ongoing
periodic payments from income for children and/or
former spouses (child support and spouse
maintenance). The powers of the Australian family
law courts are broad and include the power to
make whatever order is just and equitable in the
particular circumstances of each case. However, the
discretion of the courts is guided by the Family Law
Act.
Worldwide assets and income are taken into
account by the Australian family law courts. An
Order made by an Australian court about family law
matters may be enforceable against assets and or
income in places other than Australia.
Rules and regulations and compliance
The Family Law Act is a legislative provision of the
federal government of Australia. As such the law
about family breakdown is the same in all states of
Australia. The Family Court of Australia and the
Federal Circuit Court of Australia are national courts
albeit registries exist in all capital cities and many
regional centres of Australia.
Author: David Barry is an accredited specialist in family law and
a director of Gordon & Barry Lawyers Pty Ltd.
To learn more about Australian family law
visit www.gordonbarrylaw.com.au
To contact David, call +61 (0) 2 8239 5100
or email him at dbarry@gordonbarrylaw.com.au
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One of the first things many notice when visiting or
moving to Australia, is that people come from
many different cultural backgrounds, especially East
Asia, South Asia, Middle-East and Europe. 43% of
the population was either born overseas (25%) or
have one parent who was born in another country.
This diversity is what many people enjoy about
living in Australia.
Dealing with different Cultures
As you are working and living in Australia, at some
stage you will find yourself interacting with people
from different cultural backgrounds, at work and in
the community. The importance of accepting
people from different cultural backgrounds and
respecting others can be a challenge for many who
are new to Australia, where they don’t have much
experience with this in their home country.
The Cultural Differences
Many people assume that Australian culture is a
mix of English and American styles – but this is not
true. Australia is a combination of many cultures
that have migrated and been living in Australia
since the 1800s. If you have stereotypes of what
Australian people do, or think, then you will face
numerous challenges in your daily life. Australia is a
very tolerant society, and openly accepts many
cultures and provides freedom for people to
Cross-Cultural Awareness In Australia
express their ideas, celebrate their customs as they
would back home, and which is often not possible
in many countries around the world.
Managing Culture in Business
If you are working in Australia, as an employee,
manager or even own the business, it is important
to learn how to adapt your communication style
and people skills to be more effective. In Australia,
you may need to have several ways of dealing with
people, depending on where they come from, their
age, and learn when to adjust your style to be
more successful.
This is an important part of management skills in
business, but also with business negotiations,
conducting meetings, how you ask staff or
colleagues for help, and even just the way you
communicate with others.
Many immigrants have lived in Australia for quite a
number of years and have already adapted to the
Australian lifestyle and culture, such as not working
excessive hours and preferring to spend the
evenings and weekends with their own family,
relaxing and enjoying the Australian lifestyle.
Cultural Advice
If you can learn to appreciate the different parts of
the multi-cultural society in Australia, adapt your
own style a little bit for other people and in various
situations, then your life and career in Australia will
be much more successful and enjoyable.
Author: Rohan Baker is the Managing Director of Berlitz Australia.
Founded in 1878, Berlitz is the world's largest language and cultural
education provider with over 550 branches in 75 countries.
Over 400 of the Fortune 500 companies use Berlitz to train their
employees and managers when working with other cultures.
For more information go to: http://www.berlitz.com.au/
or contact Rohan on rohan.baker@berlitz.com.au
