At Astra Worldwide, we specialize in helping expats of all nationalities—including Australian expats—manage and take full advantage of their expatriate status. Often, when individuals move abroad, they give little thought to the most effective structures for holding their investments while overseas—structures that could not only enhance their financial position while abroad but also provide valuable tax benefits upon returning home to Australia or elsewhere.

This article is particularly geared at Australian expats and highlights the opportunities for them when managing their finances while abroad. It also highlights certain structures that not only work while they are abroad but also offer tax planning opportunities when you return to Australia. 

Potential mistakes Australian expats make while working abroad: 

Expats who move abroad generally open local bank accounts in the country where they now work. These banks will then encourage their new client to also make investments and save money with them.  

On the face of it this will seem like a good option as it keeps your assets outside of Australia in one place making them easier to manage. Expat locations often don’t tax the expat client making it seem even more appealing.  

The local institution or bank will also probably have a good spread of international investments for the client to choose from, and it will be easy to manage on a straightforward platform. 

So, what are the disadvantages of these solutions: 

Without exception, you must close any investments you’ve made in the country where you’re working once your employment ends.

If you also have pension arrangements, you will likely need to encash and cancel them as well.

The Australian government offers certain tax concessions to various offshore insurance policies, annuities and trusts which provide tax benefits for that individual while they work and live abroad outside of Australia. 

Benefits of selecting ‘approved schemes’ which provide tax concessions when you return to Australia: 

These schemes give you the option to grow and protect your savings and wealth while you work abroad—particularly beneficial for Australian expats—often free of tax.

They are open architecture which allows you to invest into almost any asset class from funds to shares and includes Gold and Crypto as well as cash and alternative assets. 

You can appoint a ‘fund manager’ to manage your assets in these approved schemes while you remain abroad allowing you to focus on your work and enjoying life. 

With these schemes being ‘offshore’ you are protected from creditors or greedy employers who could seize your assets if they stay in the country where you work.  

The schemes allow you access to your funds generally at any time for important events like house purchase, school fees and retirement. 

Another key advantage of these schemes is they avoid the need for probate and lawyers if you die in your new country. Often when this happens ‘local assets’ are frozen which creates a headache and unwanted costs and time wasting when the family and beneficiaries can least afford it. 

These ‘approved schemes’ are like a ‘trust’ so in the event of your death the benefits in the scheme can be immediately paid out to beneficiaries without the involvement of a Will or Lawyers and will in most circumstances be free of death taxes. 

These schemes are also simple to set up and manage, allow you to track your investments daily through an online platform and use different currencies. 

Returning to Australia: 

With these schemes being approved in Australia there is often very little need to do anything. The schemes remain in place while you return to Australia and the funds roll up free of tax even when you are tax resident back in Australia. 

You retain control of your investments and the ability to also access funds and in some instances may even be able to contribute to them.  

Once you decide to take income or capital, you can coordinate with your tax accountant or advisor to determine the most tax-efficient way to withdraw funds—taking advantage of the scheme’s approval in Australia.

Nearly all countries around the world are cutting the tax exemptions they offer to people with pensions and investments, and Australia is no exception. 

These schemes offer a tried and trusted way for Australian expats to save and accumulate capital while they work abroad which will minimise their tax liability when they return home. 

These structures also protect you and your family while you live and work abroad from creditors and unscrupulous employers who might take advantage of your situation. 

They also offer the opportunity for long term planning by wrapping your assets in a ‘trust structure’ which negates the need for a Will as benefits can be paid out quickly on the event of death to your beneficiaries.  

 SUMMARY

✅ DO: Use Approved Offshore Investment Schemes

• Choose approved schemes that offer tax concessions for Australians living abroad.

• These allow for global diversification—including funds, shares, gold, crypto, cash, and alternative assets.

• Benefit from asset protection, easy access to funds for life events, and flexible currency options.

• Appoint a professional fund manager so your investments grow while you focus on your career and life abroad.

• These schemes are often exempt from probate, allowing your beneficiaries to receive funds without delays, legal fees, or death taxes.

❌ DON’T: Rely Solely on Local Banks and Investment Platforms

• While convenient, local banks require you to close investments when your employment ends.

• You may also be forced to encash pension plans, losing long-term growth and benefits.

• Local investments can be exposed to seizure from creditors or employers in some jurisdictions.

• In the event of death, local assets are often frozen, creating delays and financial stress for your family.

If you are an Australian expat working abroad take the time to understand your financial situation and make an appointment with us so we can help you prepare for all eventualities.  

The easiest and cheapest solution is rarely the one that will work the best for you and often means you are creating more costs and issues with tax later down the line.  

Drop us a line so we can help you create the ideal solution that not only works for you today but also takes care of yours and your families future.

Email : [email protected]

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