5 Reasons Australian Expats in Singapore Consider Working With a Financial Adviser

By Jarrad Brown

Relocating from Australia to Singapore is a popular choice, and it is easy to see why. The language is familiar, the lifestyle is comfortable, and career opportunities are strong. However, moving abroad also means your finances are now shaped by two different systems, each with its own rules.

Many expats find that questions start to build up. How are my earnings taxed? What should I do with my super? Is it sensible to keep my Australian property? Below are five common reasons Australians in Singapore consider seeking professional guidance.

1. Two tax systems apply to your situation

Singapore operates a territorial tax system, which means income earned in Singapore is generally the main focus, and there is no capital gains tax. Australia, by contrast, bases its approach on tax residency. Many Australians working in Singapore are treated as non-residents for Australian tax purposes, but this is not automatic, and the outcome can differ from person to person.

Your residency status matters because it influences how your salary, investments and Australian assets are treated. Australia and Singapore have an agreement in place to help prevent the same income being taxed twice, although applying it correctly requires care. A Financial Adviser who understands both countries could help you clarify your position and may suggest involving a tax specialist where needed. Since most other financial decisions build on this foundation, it is often the best place to begin.

2. Retirement savings need ongoing attention

Superannuation is easy to overlook when you are living overseas, yet it is often one of an expat’s most valuable assets. Some people stop contributing while abroad, while others continue making voluntary contributions. Either approach could be appropriate, depending on your goals. It is worth understanding contribution caps, fund fees and any restrictions that apply to non-residents before deciding.

Many expats also hold several super accounts from previous jobs. Each account may carry its own fees and insurance, so consolidating them could be worth considering as a way to simplify things.

Singapore adds a further layer. The Central Provident Fund (CPF) is designed mainly for citizens and permanent residents. If you work in Singapore on an Employment Pass, you are generally not required to contribute, which can mean a higher take-home income. On the other hand, it also means your retirement planning largely rests with you. Super and CPF cannot be transferred into one another, so they need to be thought about separately. Some expats explore options such as the Supplementary Retirement Scheme, and an adviser could help you assess whether something like this might suit you.

3. Your Australian property deserves a clear strategy

For many Australians, the family home or an investment property is a significant part of their wealth. When you move abroad, you face a choice. You could rent it out, sell it, or hold it for a possible return.

The tax rules for non-residents can be different from what people expect. For example, the main residence exemption may not apply when a non-resident sells a property that was once their home. Capital gains tax could therefore become a real consideration. In some cases, a portion of the sale price may also be withheld at settlement. Rental income is taxable in Australia, and once you account for loan repayments, management fees and tax, the remaining cash flow may be lower than anticipated.

Currency is another factor. Your property is valued in Australian dollars, while your income is probably in Singapore dollars, so exchange rate movements could affect both your costs and your returns.

An adviser could help you weigh these points alongside your wider plans, including how long you expect to stay in Singapore. That can make the decision feel more considered and less rushed.

4. Investing abroad with a possible return in mind

Singapore’s tax environment is often seen as supportive of building wealth. Many expats take advantage of this by investing while they are here. The key point to remember is that an investment that works well for you in Singapore could be treated very differently if you later return to Australia and become a tax resident again.

For instance, some Australian-based funds may add complexity while you are a non-resident. Certain offshore investment products can also carry high fees or be difficult to understand. It may be worth reviewing the charges, structure and tax treatment of anything you hold, and considering how it might fit your plans in the long run.

Exchange rates and money transfers are part of this picture too. Moving funds between Australia and Singapore through a bank may be more costly than using a specialist foreign exchange provider, so it could be worth comparing your options.

Many expats assume they can sort out their investments after returning home. By that stage, however, some opportunities may no longer be available. Planning ahead could give you more flexibility. A cross-border adviser can help you think through how your portfolio might look in several years, whichever country you are living in.

5. Protecting your family and your long-term plans

Protection and estate planning rarely feel urgent, which is why they are often postponed. Yet they can make an important difference if circumstances change.

Insurance is a good example. Cover that came with your Australian super fund may not continue while you live abroad, and some life, income protection and health policies have restrictions for people living overseas. Checking that your current cover is still valid, and that it suits your family’s needs, could help you avoid unpleasant surprises.

A few other basics are worth considering:

• An emergency fund. Setting aside enough to cover a few months of expenses could give you a useful buffer if work or personal circumstances shift unexpectedly.
• A current will. If your assets are spread across two countries, different inheritance rules may apply. A will that reflects your wishes could help make things clearer for your loved ones.
• A retirement location in mind. Retiring in Australia, in Singapore or elsewhere each has different tax, healthcare and visa implications. Thinking about this early gives you more room to prepare.
  

A Financial Adviser could help you bring these elements together into one coherent plan, rather than handling them as separate tasks.

What to look for in an adviser

Expat financial planning is a specialised field, and not every adviser has experience in it. When comparing options, you could ask:

• Are they properly licensed, and can you verify this on an official register?
• Does their firm permit them to advise Australians living overseas?
• How often do they work with expat clients?
• How frequently will you hear from them? Rules and personal circumstances change, so regular reviews could be more useful than a yearly catch-up.
  

Final thoughts

You do not need to have everything figured out before speaking with a professional. For many expats, simply understanding where they stand financially can bring a sense of relief.

When you’re ready, feel free to schedule a complimentary conversation, and we can discuss your cross-border financial planning needs and the steps you can consider to get there.

Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian professionals in Singapore.

Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3

To learn more about how we may be able to help you, please contact us:

📞 8282 5702

✉ jarrad.brown@gfcadvice.com

💻https://singapore.feebasedfinancialadvice.com

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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.

*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.