Australian expats rake in high salaries, invest in local property: Study

Australian expatriates working overseas are among the highest earners in the world, with average salaries topping $200,000, according to a new study.

The study by global banking giant HSBC, which involved a survey of 4,100 expat workers from 100 counties, found Australian expats are the fourth-highest earning nationality in the world, with 27% earning over $200,000.

However, expats from other countries working in Australia are not doing as well. While 23% of expats working in Australia managed to earn over $US200,000, the report ranked Australia as the 14th highest income country out of 25.

The best places for Australian workers planning on heading overseas to target is Russia, where 36% of those surveyed are earning over $US250,000, followed by Bermuda (32% of expats earning over $US250,000) and Singapore (27%).

Despite the fact that Australia’s expat workers are contributing directly to the local economy, they are still sharing some of their new-found wealth.

HSBC says a large amount of wealth continues to be repatriated into Australia, with the most common local investments for expat workers being property (42%), savings (36%) and equities (23%).

Australian expats also make considerable investments in the new country of residence too, with savings (54%) and property (20%) the most popular options.

Graham Heunis, head of personal financial services for HSBC Bank Australia, says Australian expat workers are enjoying a much better standard of living compared to when they lived in Australia, with 67% earning more than they did at home and 61% saving more money.

“They have more disposable income than they did in Australia and they’re spending more, but their high salaries allow them to save and invest more while still managing to reduce debt. It’s certainly a good time to be an Aussie expat.”

While Australia’s low ranking as a destination of choice for foreign workers might not thrill employers hoping to meet skill shortages with overseas staff, it does appear that overseas workers are enjoying some benefits they cannot get at home – such as job security.

Just over 40% say the Australian economy has improved since 2009 and 96% intend to stay.

“In Australia, expats continue to report lower salaries than their overseas counterparts but despite this, two-fifths of expats reported an improvement in the economic environment here, double the global average, and nearly all of them want to stay in Australia. This suggests that employment security, by virtue of a strong economic environment, is more important than a high salary,” Heunis said.

One looming issue for Australian companies employing overseas workers is a concern about rising living costs; one quarter of all foreign nationals working in Australia felt there had been an increase in the costs of everyday items, healthcare and tax.