Just Got a Promotion in Singapore? 5 Financial Moves Australian Expats Should Consider
Global Financial Consultants
By Jarrad Brown
You got the promotion. The email landed, the new title is official, and you’ve probably already told your family back home. Congratulations, truly.
Then, somewhere between the celebratory dinner and the first look at your new contract, a quieter thought arrives: what do I do with the extra income?
That’s the part nobody puts in the congratulations card. A promotion in Singapore often means a higher salary, a bigger bonus and sometimes a better benefits package. For Australian expats in Singapore, it also means bigger decisions spread across two tax systems, two currencies and two retirement setups. A pay rise can make small financial choices matter a lot more, because they can compound over the years.
The good news is that you don’t need to do everything at once. Here are five moves worth considering now that your income has stepped up.
1. Check your tax residency before your new salary kicks in
A bigger salary makes this one more important than ever. Plenty of Australians assume that moving to Singapore automatically makes them a non-resident for Australian tax purposes. In reality, Australian tax residency is about your ties to the country.
A home you keep available in Australia, long stretches spent back home, or ongoing work for an Australian employer can all keep you in the Australian tax net. That could mean your new Singapore salary and bonus could also be assessed for tax in Australia, which could come as an unpleasant surprise in a letter from the ATO.
Worth considering: Documenting your tax residency circumstances and speaking with an adviser who understands both tax systems while the details of your new remuneration package are still fresh in your mind.
2. Make the most of your higher income, with Australia in mind
A higher salary in Singapore can mean more money in your pocket each month. With generally lower personal income tax rates than Australia, you may have more room to save, invest or enjoy your new lifestyle.
But before upgrading your car, moving into a bigger condo or increasing your monthly spending, consider where that extra income could make the biggest difference.
For example, could you use part of your bonus to build an emergency fund covering six months of expenses? Set aside money for your children’s education? Or increase your retirement savings while you’re earning more?
If returning to Australia is part of your long-term plan, currency exchange rates, future living costs and potential tax implications are also worth keeping in mind.
Worth considering: Setting aside a portion of every pay rise or bonus towards specific financial goals, rather than allowing your everyday expenses to grow alongside your income.
3. Don’t let your super fall behind your career
Your career has just taken a step forward. But what about your super?
For Australian expats in Singapore, moving overseas can mean missing out on the regular super contributions you once received from your employer. Over several years, that could leave a noticeable gap in your retirement savings.
The good news? You can generally still make voluntary contributions to your Australian super, subject to certain rules and limits. It’s also worth checking whether you have multiple super accounts, what fees you’re paying and whether your existing insurance cover remains active.
In Singapore, Employment Pass holders who aren’t Permanent Residents don’t contribute to CPF. However, eligible foreigners can consider the Supplementary Retirement Scheme (SRS), which allows annual contributions of up to S$35,700 and offers potential tax benefits. Keep in mind that withdrawal rules apply.
Worth considering: Reviewing your existing super, checking your contribution options and exploring how you could continue building your retirement savings while working in Singapore.
4. Mind the currency and the property back home
Many Australians in Singapore earn in Singapore dollars but dream in Australian dollars: a home deposit, a move back home or a retirement beach house.
A promotion can bring those goals closer, but if exchange rates move against you just before you transfer your savings, years of hard work could be worth less than expected.
You could consider transferring money in stages rather than all at once. It’s also worth comparing foreign exchange providers instead of automatically using your bank, as fees and exchange rates can vary considerably.
If you own property in Australia, the tax rules may also change when you become a non-resident for Australian tax purposes. Selling your former home while living overseas could mean losing access to the main residence capital gains tax exemption.
Worth considering: Treating property as part of the wider plan, not just an emotional link to home.
5. Protect your income and plan for what comes next
A promotion is a great time to look beyond the pay rise and ask two slightly less exciting questions: is my new income protected, and what would my plan be if I had to leave Singapore sooner than expected?
Protection is a good place to start. You could consider whether your life, disability or income protection policies still work while you live overseas, and whether the amounts suit your higher salary. Health cover is worth a look too. Some employers include it in your package and others don’t, and Singapore’s public schemes mostly serve citizens and permanent residents rather than Employment Pass holders. If you hold assets in more than one country, a valid will for each can spare your loved ones a lot of stress.
Then there’s the part many expats put off: the way home. Most people eventually return to Australia or move somewhere new, and once you become an Australian tax resident again, your global income can be taxed there. Investments that are tax-free in Singapore may be taxed once you’re back in Australia.
The most useful planning often happens before you leave, while Singapore’s tax settings are still working in your favour. You might consider reviewing how your investments are structured, when any property sales could make sense, and how and when to convert savings back into Australian dollars.
Worth considering: Writing down a rough “return home” timeline, even a loose one, and reviewing it with an adviser every couple of years. It’s much easier to adjust a plan you’ve already sketched than to build one in a hurry.
A gentle final thought
You don’t need to tackle all five moves this weekend. Pick the one that feels most pressing, perhaps tax residency or super, and start there. Small steps taken early tend to add up, especially when they begin right as your income grows.
A financial adviser who understands both Australian and Singaporean rules can help you see the full picture. When you’re ready, feel free to schedule a complimentary
consultation to discuss how to work towards a more secure financial future in both countries. Your promotion is a big step, and a little planning now could help turn it into lasting financial security.
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:
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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.