# Relocation package tax implications



## SunnyBreeze (Jul 11, 2009)

Hi! I'm new to this forum, but have been reading a lot of the older threads and find the information extremely helpful!

I'm currently a Vancouverite and am in the midst of receiving an offer from my company for relocating to Sydney. Although I haven't seen the full offer yet (it's really frustrating how secretive and long it's taking), I've been asked whether I want my relocation "bonus" as a lump sum or to be re-paid to me after I submit my expenses. I'm told that shipping and things like phone connections, banking fees, etc. would be covered. The difference is that if I take it as a lump sum, I'm taxed heavily on it, whereas if I expense the costs afterwards, I'd receive the full amount being offered because it'd be tax free. 

However, I'm not planning to ship too much stuff, mostly just some clothes and personal items. My plan is to buy basic furniture and appliances once I get to Sydney. I'm concerned that if I take the expensing option, I won't be able to 'use up' the full amount...but if I take the lump sum, I'm losing out on the high taxes. Part of the problem is that I'm not sure exactly what would be covered if I were to expense all the costs. Does anybody have any advice?

Thanks!


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## anj1976 (Apr 24, 2008)

HI

welcome to the forum.

I am still to get my VISA so cant help much but relocation would mean not just shipping charges but buying new stuff there as well. its your choice if you bring the old or buy new there.. isnt it? I dunno if I am making much sense but this is how it works here. The amount is normally used in moving/buying/setting up a new place etc etc.


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## SunnyBreeze (Jul 11, 2009)

Thanks anj1976,

That's what I assume as well. I'm trying to get more clarification on exactly what can be 'expensed'. At this point, I'm leaning towards taking the expense option. I think that return visits home and family visits to the new location may be expensed at 50% too. If that's indeed the case, I'd definitely use up the entire amount.


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## mtyler (Jun 11, 2009)

I was offered expenses up to $10k for relocation. I was able to include costs of setting up the new home, in addition to flights, shipping, medicals etc.

You will be amazed at how much stuff you need to buy, especially as lots of houses out here are not furnished at all, so you'll need to buy fridges, beds, etc.

Find out the values involved and that should help you decide.


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