Career Mobility Case Studies

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Secondment within the UK

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The Facts

After a successful few years, ‘London Data Secure’ has decided to expand into new territories by opening a satellite office in Manchester to serve the North West of England.

The office will initially consist of five people - a general manager, a sales manager and 3 IT technicians. In order to get off the ground quickly, London Data Secure decide the new office should be headed up by someone who is already part of the business in London.

It is decided Chris will be seconded from London to be the GM for the new Manchester office, where he will remain for at least 12 months.

The Figures

Based on Chris’s salary of £40,000, with Career Mobility applied, he will benefit with an extra £2,232 take home pay per annum without his employer paying him any increase in salary, and London Data Secure will also benefit by £1,481 per annum.

This makes the secondment much more appealing to Chris, giving him the opportunity to advance his career, go out and make the most of his new lifestyle and also recoup the costs of his move.

The Results

Employee Advantages

• Increases take home pay with secondment
• Recoups travel and accommodation costs associated with secondment
• Is happier at work with additional Career Mobility benefits
• Is committed to fulfilling contract and performing at his best
• Does not change employment status

Employer Advantages

• Saves on costs relating to Chris’s secondment
• Pays no extra salary or super
• Retains satisfied, motivated personnel
• Has no reportable FBT liability (with Career Mobility applied correctly)
• Sees no change in employees' employment status

Relocation within the UK

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The Facts

'London Data' has decided to expand into new territories, and are opening a satellite office in Manchester. The office has a General Manager but needs a Sales Manager with specific knowledge of the contract IT support market.

The company place an advert in The Press. After interviews, a guy called Hamish is identified as strongest candidate. He is currently a Sales executive for another IT Support company based in Glasgow and is looking to progress his career. London Data offer him the position of Sales Manager, which he accepts.

He will be based in Manchester, and therefore needs to relocate from his rented flat in Glasgow, where he has lived for the last 3 years.

The Figures

When Hamish is offered the job, he asks for an extra £4k on top of the initial offered basic salary. London Data do not have the budget to stretch that, but are able to use the Career Mobility Relocation offering to ensure Hamish gets tax relief on his relocation costs, without increasing his salary, meaning everyone is happy.

Based on his £40,000 salary, Hamish will receive an extra £1,880 per annum take home pay with Career Mobility applied and London Data will also save £1,242 per annum.

The Results

Employee Advantages

• Increases take home pay
• Recoups a reasonable proportion of the cost of relocation and out of pocket expenses
• Is happier at work with additional Career Mobility benefits to remain loyal to employer
• Is committed to fulfilling contract and performing at his best
• Does not change employment status

Employer Advantages

• Saves on costs relating to Hamish’s appointment
• Pays no extra salary amounts, including super or cost
• Has no reportable FBT liability if applied correctly
• Gains satisfied, motivated personnel
• Sees no change in employees' employment status

NB. All figures provided are representative of 09/10 taxation guidelines, and are estimates against individual circumstance.

Australian Relocates to the UK

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The Facts

Rachel decides to embark on her OE to the UK, and visits a myOE seminar in Brisbane. myOE set her up a meeting with the London office, during which her UK account manager runs her through the salary packaging services.

Rachel is in Digital Marketing, and sets out on her search for a contract. Unfortunately, all the roles Rachel is offered are permanent positions, meaning she cannot take advantage of myOE’s salary packaging services, so her account manager refers her to the Career Mobility team.

Rachel learns about Career Mobility, and in turn introduces them to her employer’s HR manager.

The Figures

Rachel’s new employer is a London-based marketing agency, who could apply the relocation benefits of Career Mobility when employing Rachel. This means that based on a salary of £40,000, Rachel will benefit by £1,880 per annum, and her employer will benefit by £1,242 per annum.

These savings include the relocation of Rachel’s belongings to the UK, transport costs related to her relocation, accommodation and domestic goods for her new residence. This allows her to happily take on a permanent role and kickstart her OE on a high.

The Results

Employee Advantages

• Increases take home pay
• Recoups a reasonable proportion of the cost of relocation and out of pocket expenses
• Is motivated and happier at work with additional Career Mobility benefits
• Is committed to fulfilling contract and performing at her best
• Does not change employment or visa status

Employer Advantages

• Saves on costs relating to Rachel’s relocation and appointment
• Pays no extra salary amounts, including super or cost
• Has no reportable FBT liability if applied correctly
• Improves recruitment and retention and gains satisfied new employee
• Sees no change in employees' employment or visa status

NB. All figures provided are representative of 09/10 taxation guidelines, and are estimates against individual circumstance.

Australian Relocates Interstate

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The Facts

Joe is a 30 year old BA from Melbourne working in a large organisation in the insurance and finance sector.

Colleague Jill, in a similar role in the Brisbane office, is about to take 12 months maternity leave, and Joe is asked if he would move up to sunny Queensland to cover her role.

He weighs up the added experience he will gain and the better weather and decides to go for it.

The Figures

Joe's annual salary of $105,000 gives him $75,425 after tax. It costs him $2000 to move all his things, and after three weeks in short term accommodation when he first arrives, he rents a unit at Kangaroo Point for $400 per week.

Without his employer paying him any increase in salary, the LAFHA tax allowance means he gets an extra $10,401 take home (after tax) pay. This not only covers Joe's move and initial relocation but also gives him a chance to go out and make the most of his new lifestyle.

The Results

Employee Advantages

• Increases take home pay
• Recoups most of the cost of relocation and other out of pocket expenses
• Is motivated and happier at work with additional LAFHA benefits
• Improves work experience with new role and remains loyal to employer rather than moving on
• Does not change employment status

Employer Advantages

• Pays no extra salary or super
• Has no reportable FBT liability (with LAFHA applied correctly)
• Retains satisfied, motivated personnel, becoming an Employer of Choice
• Improves recruitment and retention and builds staff loyalty
• Sees no change in employees' employment status

Immigration to Australia (457 Visa)

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The Facts

Patrick is a 33 year old Systems Engineer from Dublin who decides to immigrate to Australia with his family.

He finds a job with a large retail head office in Sydney, and his employer sponsors him on a schedule A 457 Visa for four years.

He has brought with him to Sydney his wife and two children, aged 4 and 8.

The Figures

Patrick's salary of $95,000, exclusive of super, gives him $69,575 take home pay after tax. It costs him $5000 in airfares and additional moving costs, over and above the relocation reimbursement provided by his employer.

They move into a two bedroom unit in Randwick which they rent for $400 per week, and they pay $4000 per year in school fees. When LAFHA is applied, without his employer increasing his salary, Patrick's take home (after tax) pay increases by $13,247 in the first year, and $10,412 for the subsequent 3 years.

This allows him and his family to enjoy a good standard of living and take advantage of their new outdoor lifestyle.

The Results

Employee Advantages

• Increases take home pay
• Recoups a reasonable proportion of the cost of relocation and out of pocket expenses
• Is motivated and happier at work with additional LAFHA benefits to remain loyal to employer
• Is committed to fulfilling contract and performs at his best
• Does not change employment or visa status

Employer Advantages

• Pays no extra salary amounts, including super or cost
• Has no reportable FBT liability if applied correctly
• Retains satisfied, motivated personnel and becomes known at Employer of Choice
• Improves recruitment and retention of key staff who remain loyal to the company
• Sees no change in employees' employment or Visa status

NB. All figures provided are representative of 09/10 taxation guidelines, and are estimates against individual circumstance.