One of the main issues you need to prepare is to live in Australia once you have issued a visa for that country. Before leaving your home country, you are not the only one who has been calculating numbers, because there are many warnings about the cost of living in Australia. To help you plan, please consider the following cost elements when making cost estimates in Australia.
Australia’s tax rate is very high, similar to the UK. Most taxes in Australia are withheld from sources of income. The system is progressive, with a basic tax rate of 40%, and when personal income exceeds A$180,000, the tax rate will rise to 45%. However, the high tax cost is worth it because the country’s public services are first-rate. Since the system is up and running, taxes greatly affect your overall financial capabilities.
Australia’s public health system is funded by a mandatory tax of 1.5% of the population. Therefore, many people began to choose private medical insurance to reduce overall medical expenses. Due to the high cost of healthcare in Australia, you need to include the cost of private insurance and handling fees in your overall calculation of the cost of living in Australia.
Food and Drinks
Compared with other countries, Australia’s food and beverage costs are relatively cheap. If you are used to living in Australia, the total cost savings will be greater when you are addicted to the “Australian lifestyle”. One of the secrets is to stay away from high-end restaurants and eating places in highly urbanized areas such as Melbourne, Sydney, Perth and Adelaide. These areas will of course charge higher fees, but the overall cost of living in Australia depends to a large extent on a person’s tastes and preferences while living in Australia.
When calculating the cost of living in Australia, Australia’s huge land puts a heavy burden on transportation costs. Although the Australian Federal Government has made huge investments in transportation, the huge scale still accounts for a large part of a person’s daily expenses in the country. When travelling across the country, there is also a huge airport network and other means of transportation available to many people. However, compared to owning and maintaining a car, using public transport in Australia can bring more benefits.
In recent years, the cost of education has been increasing steadily. This is due to the increase in the number of private schools and immigration schools in the country. Although the state government’s cost of education from kindergarten to grade 12 is A$93,000, the cost of Catholic schools is twice that of the latter, while the cost of private schools is four times that of the latter. If your funds are tight enough, the public school system is still the most profitable due to the high standards of the school curriculum.
The above factors are some of the key points when calculating the cost of living in Australia. These cost individuals a large part of their money, and despite the high total cost, Australia is still the favourite destination of many immigrants. As the cost of living rises, the Australian Forum predicts that “increased living standards, job prospects and overall economic growth will partially offset this growth”.