Managing your Relocation Expenses and Budget

Listed below is a Policy on “Relocation Expenses and Managing Your Relocation Budget” which The Western Australian University uses for all staff they relocate.

I thought it was quite interesting and for those of you that are currently negotiating your relocation packages and expenses, it may be of use. If you have never relocated for work before, it can be quite challenging.

Often candidates don’t know what to ask for with regards to their relocation package. This policy on “Managing your Relocation Expenses and Budget” provides a great guide. I hope you find it useful.

Purpose of the Relocation Expenses and Budget Policy

This policy outlines the relocation assistance given to new appointees who are required to relocate to take up their appointment. It includes details of travel and removal entitlements and eligibility criteria for the assistance.
Definitions

Dependent Child – A child under 21 years old who is not a student or a student under 25 who is studying full time at school, college or university.
Adult dependents – An adult dependant with a disability may also be included as dependants for the purpose of this policy.
Partner – A partner is a person who is a spouse, de facto or same sex partner.

Policy statement Relocation Process Map

In line with the University of Western Australia’s vision to “Achieve International Excellence”, it aims to recruit the highest calibre staff from both around the world and within Australia. For those new staff members that need to relocate to take up their appointment at UWA, The University provides a range of relocation assistance services.

1 Relocation Eligibility

1.1 New appointees, who are required to relocate to take up their appointment at UWA, are eligible for assistance with relocation expenses if they meet the following criteria:

• they hold an administrative, professional or technical position at HEE Level 6 or above OR they hold an academic position, and

• uplift address is further than 100km from the University

1.2 Appointees who believe their particular circumstances would cause them to be seriously disadvantaged by the limits imposed may make application to the Director, Human Resources for special consideration to have their removal expenses increased.

1.3 Any relocation expenses which are not provided for in this policy may be negotiated with the relevant School / Faculty / Centre for payment.

1.4 An employee may salary package the actual costs associated with relocation, or the difference between the amount provided by the Relocation Expenses policy and the total relocation expenses.

Examples of eligible costs include: removal and storage of household effects, certain costs associated with the sale or acquisition of a dwelling as a result of the relocation; stamp duty (Australian residents only) and costs associated with the connection and reconnection of certain utilities.

2 Summary of Relocation Entitlements

The actual assistance provided is set out under the various categories of appointment listed below. Fixed term appointment 1-2 years

From Australia – Airfares only
From overseas no dependants – Fixed allowance up to $5,411 to spend on airfares, accommodation or removals etc.
From overseas with dependants – Up to $10,822 to spend on airfares, accommodation or removals etc

Fixed term appt less than 1 year

Relocation expenses for appointments for less than on year will be at the discretion of the Director, Human Resources.

Research Funded Appointments

Some research funded appointments are given a discretionary amount to assist with their relocation. This may be used to pay for airfares, accommodation, or removal expenses. Appointees must present original receipts to the work area for reimbursement

3 Airfares/Travel Expenses

3.1 New appointees, whose relocation assistance includes airfares, are entitled to the actual cost of one-way economy class airfares for themselves, their partner and any dependants from the place of engagement to Perth (or other work location such as Albany or Geraldton). All flights must be by the most direct and economical route available (normally Standard Economy Class Fare).

3.2 Bookings are to be made directly with one of the University appointed travel service providers, eliminating the need to outlay money and subsequently seek reimbursement.

3.3 Travel expenses (e.g. taxi or bus) to and from airports will also be reimbursed upon presentation of original receipts.

3.4 Appointees from within Australia may choose to travel by the most direct route by rail or road:

3.4.1 Rail –

The University will reimburse on presentation of receipts, up to the equivalent of the cost of Economy Class airfares for the appointee, their partner and any dependants. Acceptable expenses include rail tickets, food, drinks and incidentals purchased during the journey, and the cost of public transport used to get to Train Station.

3.4.2 Road –

The University will reimburse on presentation of receipts, reasonable expenses incurred during the course of the journey, up to the equivalent of the cost of Economy class airfares for the appointee, their partner and any dependants. Reasonable expenses include petrol, overnight accommodation, food, drinks and incidentals purchased as part of the journey.

4 Removal Expenses

4.1 The University has entered into a Service Agreement to handle all inbound moves for new appointees.

4.2 Where relocation assistance includes removal expenses, The University of Western Australia will pay the costs (up to the limits specified below) for the packing, transportation, transit insurance, destination charges, delivery to residence and unpacking of household goods and personal effects, from the place of engagement to Perth (or other work location such as Albany or Geraldton).

4.3 Volume Allowance: Single Person: allowable limit 15 cubic metres Appointee with 1 dependant: allowable limit 25 cubic metres Appointee with 2 dependants: allowable limit 30 cubic metres Appointee with 3 or more dependants: allowable limit 35 cubic metres

4.4 The payment of costs will not exceed the quotation for the allowable volume. If the consignment is larger than the allowable limit the appointee will be responsible for the cost of the additional volume.

4.5 Essential professional items required for immediate use on commencement of duty may be transported as air freight at the time of travel. If the value of any such item is in excess of $2,500, please advise the removalist.

4.6 Removal expenses cannot be converted to a settling-in allowance or to a monetary value.

4.7 The cost of transporting family pets is included in Settlement Services, see clause 7.3.6 below.

4.8 If household goods and personal effects are required to be stored, the University will pay:

• 100% of storage costs for the first four weeks and 50% of storage costs for a further four weeks, or • 100% of storage costs for six weeks.

4.9 Motor vehicles – For domestic moves only, the University will pay the cost of the premium for transportation and insurance of one family motor vehicle.

5 Transit Insurance

5.1 Transit (Marine) Insurance cover is provided for both sea and air freight. Should you have fragile or valuable items (i.e. valued at over $2,500) please ensure that you advise the removalist.

5.2 In the event of a claim for loss or damage, the employee is responsible for payment of any excess.

5.3 Insurance Entitlements Volume Allowance Notional Insurance

6 Temporary Accommodation in Perth

6.1 Where relocation assistance includes temporary accommodation, the University will pay 100% of accommodation costs for four weeks and 50% of accommodation for another four weeks, or 100% of accommodation costs for six weeks.

6.2 The removalist will contact the appointee and arrange accommodation bookings on behalf of the University. Temporary accommodation may be in one of the University Colleges, serviced apartments, hotel or motel. University fully furnished transit accommodation units for short term stays are also available.

6.3 Due to Fringe Benefits Tax (FBT) implications there are restrictions as to when the accommodation can be claimed.

6.3.1 At Home Location Prior to Travel

• Following uplift of furniture and personal items, the University will pay the cost of up to 3 weeks (21 days) accommodation up to and including the date of commencement at UWA, plus a further period in Perth up to a maximum of 8 weeks (comprised of 4 weeks fully paid and 4 weeks at 50% paid; or 6 weeks fully paid.

• The employee is responsible for the cost of any accommodation used prior to 21 days before commencing at UWA.

6.3.2 Upon Arrival in Perth

• The University will pay the cost of up to 1 week (7 days) accommodation prior to commencement at UWA, plus a further period up to a maximum of 8 weeks (comprised of 4 weeks fully paid plus 4 weeks @ 50% paid; or 6 weeks fully paid.)

• The employee is responsible for any accommodation costs incurred prior to 7 days before commencing at UWA.

7 Settlement Services

7.1 Where relocation assistance includes settlement services, The University of Western Australia will pay the costs of the chosen service(s) (up to the limits specified

7.2 The Settlement Service Allowance cannot be converted to a cash payment.

7.3 Settlement Services include:

7.3.1 Meet and Greet Programme Met at the airport by driver and private car and driven to accommodation

7.3.2 Destination / Information pack which includes:

• Local street directory, city map, Local events booklet

• Living in Perth booklet, Public Transport maps

• Banking information, Utilities information etc.

7.3.3 Orientation Tour

• Personal consultant collects appointee and conducts an orientation based on pre-analysed needs

• Overview of real estate, inspections of properties/schools

• Other information may include:

• Recreational activities

• Local lifestyle etc.

• Comprehensive information pack on city is provided

7.3.4 Home Search (Rental Property Sourcing)

• Choice of 16 hours, 24 hours or 32 hours options

• Appointees needs are analysed by personal consultant

• Research and a short-list of suitable properties compiled

• Appointee is accompanied on inspection of selected properties

• Assistance with rental application and lease signing or purchase process

• Assistance with Utility connections (television, internet, electricity etc.)

• Appointee can choose duration depending on needs and requirements

7.3.5 School Search

• Choice of 4 hour and 8 hour options

• Personal consultant is briefed on needs and is introduced to family

• Consultant provides information and advice on suitable schools

• Written information/brochures/websites provided

• Drive past or directions provided to visit school (depending on time)

7.3.6 The cost of transporting pets

8 Fixed Dollar Allowances

8.1 Appointees for more than 1 year but less than 2 years, whose relocation allowance is stipulated as a fixed dollar amount, may use these funds for return airfares and/or inbound or outbound removal of some personal effects.

8.2 The appointee will be responsible for any costs exceeding the fixed dollar allowance.

8.3 Unused portions of fixed dollar allowances are not available as cash payments.

8.4 Airfares can be arranged through the University appointed travel service providers.

9 Requirement to Repay

Fixed Term for 2 years or more and Ongoing/Tenurable Appointments

9.1 When an employee resigns within the first two years of their appointment, they may be required, as a condition of release, to repay to the University the travelling and/or appointment expenses paid on taking up the appointment.

9.2 For Research or Externally funded appointments, the Faculty/School will determine if there will be a requirement to repay. If they wish to recover part of the relocation allowance, the Faculty/School will raise an invoice through Financial Services for recovery.

9.3 To calculate the amount required to be repaid, the following formula will apply:

Total relocation Allowance multiplied by the number of uncompleted months divided by total number of months required (i.e. 24).

For example: $12,000 was paid for the relocation of an appointee who resigns after 18 months after commencing. Therefore, they have 6 months uncompleted service.

The calculation would be $12,000 x 6 / 24 = $3,000. Therefore, the appointee would be required to repay $3,000.

Show procedure RELOCATION EXPENSES BREAKDOWN OF RESPONSIBILITIES

Position Responsibility New Appointee

• Notify HR of acceptance of offer.

• Advise HR of details (including citizenship) of persons travelling.

• Contact one of the Preferred Travel Suppliers to arrange flight plan. Human Resources Officer

• Identify appropriate relocation allowance.

• Contact the removalist with details of new appointee and available relocation allowances.

• Provide nominated travel supplier with details of new appointee, extent of travel allowance and BU/PG for costs.

• Check and arrange payment of invoice from Preferred Provider for removals.

• Contact new appointee and assess needs based on allowances.

• Manage all aspects of household move (if applicable).

• Provide UWA Insurance and Risk Management Officer with a copy of the Packing Inventory.

• Arrange temporary accommodation (if necessary).

• Provide required settlement services (if applicable).

• Liaise with client and HR Officers as necessary.

• Invoice UWA as appropriate. University Appointed Travel Service Provider

• Discuss travel plans with new appointee.

• Arrange appropriate flight bookings having regard for travel allowances.

• Prepare and communicate itinerary.

• Charge costs directly to UWA (as appropriate).