Will the UK leaving the EU have any affect on expats in Australia?
When the UK voted to leave the EU on the 23rd of June 2016, shockwaves were felt around the globe.
Whilst the effects of the vote are hard to predict as the final details are being fleshed out over the next couple of years, a huge number of Brits wanting to reside in Australia must be wondering, ‘What happens next?’
Short-Term Good News for UK Expats
The good news is that in the short-term, the economic effects have been declared ‘very limited’ according to Australian Treasurer Scott Morrison, who released a detailed brief by the Council of Financial Regulators.
It stated that:
The effect on global activity is expected to be small, Australian trade is oriented more towards Asia than Europe, and Australian banks have limited direct exposure to the UK and Europe and are well-placed to handle disruptions to funding markets.
What about Long-Term?
The long-term prospects, however, would very much be dependent upon how orderly the negotiations were between the EU and the UK.
The brief also noted that:
The implications of Brexit for the Australian economy are not likely to be significant, but will depend upon the nature and length of the transition to new arrangements. Australia has proved resilient during past periods of financial market volatility and remains well placed to manage the economic and financial market response from the UK referendum outcome.
It also noted that whilst Australia has a small direct trade exposure to both the UK and the rest of the EU, some of its major trading partners, are heavily involved in these markets.
This could have a sharp impact on those living and working in Australia as a whole.
For example, it says:
The EU (including the UK) accounts for 15.6 per cent of China’s goods exports and 18.2 per cent of the US’s goods exports. A sharp slowdown in the EU economies with spillovers into other major economies would place downward pressure on the demand for Australia’s exports.
Other Areas of Living in Australia Impacted by Brexit.
Brexit could too have an impact on other areas of Australian life for UK expats including property, visas and the job market. It was noted that after the Brexit vote those looking to emigrate to Australia, peaked at 6.30pm on June 24th, the day the result was confirmed.
Property could be positively affected by Asian investors looking to Australia, instead of the UK to make purchases. Australian website Real Estate, argued that the country was seen as “increasingly safe, particularly compared to this volatile environment.”
Good news for investors, but maybe not such good news for those wishing to relocate to Sydney.
The city has recently been declared to have Australia’s most unaffordable housing market and is the second most expensive city in the world (Hong Kong came first). Post-Brexit, maybe only the seriously wealthy will be able to purchase homes there.
Freedom of movement, and the ability of UK and Australian citizens to travel easily between the two countries, has also been touted in recent months. In theory, this could mean that wannabe Sydney residents can emigrate without having to meet the same points based system that is currently in place.
Closer Ties Between Australia and the UK
CANZUK International has argued for closer ties between Australia and the United Kingdom (as well as Canada and New Zealand). This could, in turn, mean freedom of movement between the four countries. Alexander Downer, Australia’s high commissioner to the UK, has hinted that this would have to go hand in hand with a free trade deal with Canberra.
CANZUK have said:
Where the free movement of goods and services exists, it is commonplace to adopt the free movement of people to encourage transferability of skills and capital across nations, thereby promoting innovation, investment, and economic growth.
Will Brexit Stop Those Moving to Australia from the UK?
We can only wait to see what effects Brexit has on those moving to Australia. For many, the lure of sandy beaches (Sydney has over 100) sunny days in both summer and winter and active lifestyle choices will be enough to keep Brits flocking Down Under. Brexit, or no Brexit.
The team at PSS Removals in the UK provided Sydney Moving Guide the content for this post.
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