Where is your organisation at in its Global Mobility policy journey?

This session was primarily a roundtable discussion on the Global Mobility function becoming more human centric. The need for organisations to consider their global mobility policies and their relevance for 2020 and beyond.

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Deloitte Tax Update included:

[1] Review of CGT Main Residence and Foreign Residents - on 23 October 2019, the Australian government reintroduced legislation to deny the main residence capital gains tax (CGT) exemption if the owner is a foreign resident on the sale date.

If enacted, the CGT exemption will only apply if, broadly:

• you are resident at sale, or

• you are foreign resident at sale but

• you have been foreign resident for less than six years at sale; and

• you sold the property due to terminal illness/death of spouse/child or divorce/etc.

There are similar changes to the Main Residence exemption rules for deceased estates of foreign residents, too.

Grandfathering only for main residences owned before 7:30pm ACT time on 9 May 2017 (but only until 30 June 2020 – a 12 month extension from the 2017 announcement).

So most clients will lose 100% of the exemption if they sell while foreign resident.

Recent residency ruling Harding v commissioner of taxation was also discussed.

[2] Superannuation Amnesty that was reintroduced on the 18 September 2019 (more details can be found on the ATO website)

Immigration Update included:

Temporary skilled shortage visa streams

-Short-term; Mediam term and Labour Agreement terms discussed

-Challenges associated with the TSS visa discussed

-Brief review of skilled occupation lists

-Benefits of the New Regional Visas discussed

-Global Talent Scheme – reducing barriers to business entry

The Human Capital Trends 2019 Deloitte Global Human Capital Trends Report – Leading the social enterprise: Reinvent with a human focus was discussed at length.

Talent mobility: Winning the war on the home front:

–       46% told us their managers resist internal mobility.

–       56% told us it was easier for people to find a new job at an outside organisation than within their current organisation

Mobility policy framework trends:

Development of multiple assignment types (Developed to Developed, Developed to Developing, Global)

Some key challenges

1 Identifying and tracking the individuals

2 Defining what non-traditional Mobility is and managing intra-regional mobility

3 Balancing the needs of the employee, business requirements and risk management

Policy Flexibility:

1: How much flexibility is right?

2: Who gets to choose?

3: What kind of flexibility works best?

4: Which provisions to flex on?

Increasing impact of immigration compliance on mobility policies.

Deloitte then kindly shared their slide deck with participants.

Aysegul Kayahan

Director, Relocation Specialists

Aysegul Kayahan, managing director of Relocation Specialists in Queensland and Victoria has been in the global mobility industry since 1993. Aysegul started the Forum for Expatriate Management community in Australia in early 2012, with chapters in Brisbane, Sydney, Melbourne and Perth. From February 2015 to January 2017, Aysegul was appointed to the role of global chair of Chapter Leads for the Forum for Expatriate Management.