Contents

3 Introduction

4-5 Australian Money

6-7 Currency Exchange

8 - 11 Salaries and Tax

12 - 13 Tax Benefits

14 - 15 Property

16 - 19 Cost of Living

20 Conclusion

2
Introduction
How will this guide help with my move to Australia?

Emigrating to Australia is an exciting, yet complicated process. There

are numerous cultural and legal differences, requiring a much greater
understanding of Australian society than you could pick up from a
Neighbours omnibus.

Australian culture might seem fairly straightforward to other English

speakers, but there are many differences to be aware of and then, of
course, there are the different laws, regulations and infrastructures to
get your head around.

From sorting out your money and immigration status to securing work,
accommodation and paying your way, theres lots to think about other
than where the nearest beach is and whether koalas can be kept as pets
(thats a no, by the way).

This guide will walk you through some of the basics of moving to
Australia, helping you keep track of the important things you need to
know in order to make the move.

Youll even find weve squeezed in some less essential information, like
the fact an old law states its illegal to possess over 50kg of potatoes in
Western Australia.

That rumour that you cant dress up as Batman is false, though, so

swap some of the potatoes in your suitcase for a cape and youll be fine.

Once youve read through this youll have a good understanding of

some of the key financial issues and requirements facing you as you
prepare to move.

It will help you avoid a lot of the pitfalls of moving, such as paying
too much tax, getting caught out by rental costs, or angering the local
populace by thinking Sydney is the capital city (its actually Canberra).

3
Australian Money
Denominations of notes and coins

As soon as you land in Australia youll have to start getting to grips

with the nations domestic currency.

Australian Dollar notes come in five denominations; $5, $10, $20, $50
and $100. Each note has a unique overall colour. Five Dollar notes are
purple; ten Dollar notes are blue; twenty Dollar notes are red; fifty Dollar
notes are yellow and 100 Dollar notes are green.

Coins in circulation come in denominations of one, two, five, ten, twenty

and fifty cents and one or two Dollars.

The Reserve Bank of Australia (RBA) led the way in terms of innovating
money, introducing the worlds first polymer banknotes way back in
1988.

Australias central bank is now on its fourth iteration of the polymer

banknotes; New Zealand cottoned on to the idea (if youll excuse the
money-based pun) in 1999 and the Bank of England (BoE) released its
first polymer note, the Fiver, in 2016. The US continues to use cotton-
based paper money.

There isnt currently a timetable for the release of the next Australian
polymer notes, so dont be surprised if the money suddenly changes
while you are there.

At the same time, while you acclimatise, it may be worth double-

checking with a respectable source should you find a note you dont
recognise to make sure youre not being conned.

4
There are numerous security features on the new notes to make them
harder to counterfeit. Polymer notes have a distinctive feel and are
much smoother than paper money.

According to the RBA a genuine Aussie banknote should return to

shape after being scrunched up, although fans of crisp money might
not want to try it; these are plastic notes that will melt under intense
heat, so you cant iron them back to perfection.

The notes feature a clear window that is part of the note, rather than
being attached as a separate piece; a three dimensional image; a
holographic bird image that flaps its wings when the note is tilted; and
a separate bird image whose colours change when tilted. Be aware that
real Australian birds get annoyed when you try to tilt them.

The different denominations of Australian banknotes have plenty

of nicknames to get your head around. The $20 note is often called
the lobster or red lobster, while the $50 is called the Pineapple or
Banana. So theres no need to run and get a bucket of saltwater if you
are waiting for change and the cashier says Weve only got lobsters,
is that OK? The nicknames are usually a very obvious reference to
the notes colour, so its not that hard to discern which one someone is
talking about.

When it comes to understanding how Australian Dollars compare to

your domestic currency in terms of purchasing power, youll need to get
to grips with exchange rates and currency transfers. You can find more
information about this in our Currency Exchange section.

5
Currency Exchange
Getting the most from your money

So, you know how Australian money works, but do you know how to
get your hands on it?

At some point anyone making a move to Australia needs to consider

how they plan to transfer their funds into Australian Dollars. However,
many people dont realise they could actually save money by thinking
about this sooner rather than later.

While using a money transfer provider other than a bank may not
have occurred to you, using a bank could seriously limit the amount of
money you receive.

For starters, many charge transfer fees and most dont offer the best
exchange rates available.

A lot of people arent aware that currency works like many other
products they buy, in that banks and large firms buy it for a wholesale
price and sell it on at a slightly marked-up price.

The mark up a company applies to each currency transfer will dictate

the exchange rate they can offer you. Banks tend to apply a bigger mark
up, making their exchange rates less competitive and meaning you get
less for your money.

Even a small discrepancy in the exchange rate you secure can mean
the difference of thousands on larger transfers, a difference which
could really broaden your options when it comes to buying Australian
property or substantially improve the size your savings pot.

6
By using Working In Money Transfers, powered by TorFX, you get
access to highly competitive exchange rates and fee-free transfers.

On top of excellent exchange rates, there are lots of other benefits to

using Working In Money Transfers to send your funds to Australia, or to
repatriate your money if youre a native with funds abroad.

As weve previously mentioned, you wont get charged transfer fees,

meaning you get to keep all of your money.

Additionally, a dedicated Account Manager can help you make your

transactions at an opportune time and provide guidance regarding the
different trading options, while an online trading platform allows you to
transfer money on the go 24/7.

Regular market updates from specialist currency analysts keep you

in the know about the latest developments, helping you identify good
times to transfer money and reduce the chance you choose to trade
when the markets have moved against you.

Working In Money Transfers also give you access to a wide range of

specialist services, including risk management options such as stop
loss orders and limit orders, forward contracts and Regular Overseas
Payments.

A forward contract could prove particularly useful for anyone planning

to emigrate to Australia as it gives you the ability to fix an exchange
rate for up to two years ahead of needing to make a transfer meaning
you can budget effectively and protect your funds from any negative
shifts in the currency market.

Meanwhile, if you know youre going to need to move money abroad

every month or quarter to meet mortgage payments, transfer wages
or access a pension, a Regular Overseas Payments account will ensure
these transfers are made automatically on a date of your choosing.

Whatever your currency needs, Working In Money Transfers have got

you covered.

7
Salaries and Tax
Current tax rates for the 2016-17 financial year

The current tax rates for the 2016-17 financial year can be found below.
Remember that these are subject to change, as announced in the
annual federal budget by the Treasurer.

As with any country, when looking at tax changes think about the
other benefits that may be added or taken away, rather than simply
differences in the flat rate of tax.

Remember that these tax rates do not include the 2% levy for Medicare,
the state-funded healthcare package.

Tax Rates for Australian Residents

Taxable Income Tax on this Income

0 $18,200 Nil

$18,201 $37,000 19c for each $1 over $18,200

$37,001 $80,000 $3,572 plus 32.5c for each $1 over $37,000

$80,001 $180,000 $17,547 plus 37c for each $1 over $80,000

$180,001 and over $54,547 plus 45c for each $1 over $180,000

If you were to earn over $180,000 you would also be liable for the
2% Temporary Budget Repair Levy; a short-term tax levied by the
Australian government to help it deal with its deficits.

8
The current tax rates for the 2016-17 financial year can be found below.
Remember that these are subject to change, as announced in the
annual federal budget by the Treasurer.

As with any country, when looking at tax changes think about the
other benefits that may be added or taken away, rather than simply
differences in the flat rate of tax.

Tax Rates for Foreign Residents

Taxable Income Tax on this Income

0 $80,000 32.5c for each $1

$80,001 $180,000 $26,000 plus 37c for each $1 over $80,000

$180,001 and over $63,000 plus 45c for each $1 over $180,000

If youre planning to work in Australia you should apply for a Tax File
Number (TFN); its free and, while you dont need one, you will end up
paying more tax if you dont have one.

Your employer will need this number once you start working for them,
but the Australian government warns that you should never disclose
your TFN as part of a job application or over the internet to prospective
employers.

Your employer automatically deducts tax and pays it to the

government. In Australia this is called pay as you go withholding
(PAYG withholding). Salaries can be paid into your bank account or
directly to you in cash.

If you are receiving cash payments, your employer must still deduct
tax money and provide you with payslips to show how much has been
taken.

The Australian tax year ends on the 30th of June. Everyone is required
to file an annual tax return using the information supplied on your
monthly payment summaries. The government will ensure you have
paid the correct amount of tax and issue a refund if you have overpaid.

9
Super Payments

The Australian pension scheme is known as a superannuation, or

super for short. Your employer is obligated to make payments into
a super fund for you; this must be done at least quarterly and is
equivalent to at least 9.5% of your ordinary time earnings.

Superannuation contributions are paid on top of your standard salary

- these are not deductions. You can also choose to enter into salary
sacrifice arrangements. This isnt actually as painful as it sounds; it just
means you volunteer a part of your wage to top up your super.

You can also make contributions yourself and are able to choose which
super fund your payments go into; there are numerous choices ranging
from highly secure, but low-returning funds to risky, high-yield funds.

Its important to know about supers even if you arent planning on living
in Australia until retirement as you may be entitled to claim any money
paid into your super back when you leave the country again. This is not
an automatic process and the government will tax it.

10
Continued on the next page...

11
Tax Benefits
Maternity, child care and government pensions

Depending upon your age, income and residential status you may be
able to access a number of state benefits. The benefits you can access
will depend upon how long you have resided in Australia; for instance,
out of work benefits will not be paid until you have been a resident for
two years.

Parental Leave Pay

You will be eligible for Parental Leave Pay on the birth or adoption of
your child providing you have worked for 10 of the 13 months prior to
the arrival of your child, putting in at least 330 hours during that time
and having no more than an eight week gap. You must also be earning
below $150,000.

Parental Leave Pay is currently $672.60 per week and can be paid for
a maximum of 18 weeks, assuming you are qualified to take parental
leave. This can be paid by your employer if you intend to return to work,
or to you directly from the government.

Child Care Benefit

You may be able to receive Child Care Benefit (CCB) if you meet the
required income criteria, are sending your child to an approved care
provider and your child is sufficiently immunised.

You can get up to 24 hours of CCB per child for non-work related
commitments; if you work, train or study for at least 15 hours per week
or 30 hours per fortnight you may be eligible for up to 50 hours of CCB.

12
Age Pension

On top of your superannuation, those resident in Australia for more

than ten years and meeting the age or circumstance requirements can
claim Age Pension payments.

These are separate to your superannuation and are designed as a

safety net for those without sufficient savings or other sources of
income to get by in retirement.

Basic Age Pension Rates

Pension Rates Single Couple Couple Couple

(fortnightly) (each) (combined) (separated)

Max Basic Rate $797.90 $601.50 $1,203.00 $797.90

Max Pension Supplement $65.10 $49.10 $98.20 $65.10

Energy Supplement $14.10 $10.60 $21.20 $14.10

TOTAL $877.10 $661.20 $1,322.40 $877.10

13
Property
Fees and costs when renting or buying in Australia

As soon as you land in Australia youll have to start getting to grips

with the nations domestic currency. Australian Dollar notes come in
five denominations; $5, $10, $20, $50 and $100.

Each note has a unique overall colour. Five Dollar notes are purple; ten
Dollar notes are blue; twenty Dollar notes are red; fifty Dollar notes
are yellow and 100 Dollar notes are green. Coins in circulation come in
denominations of one, two, five, ten, twenty and fifty cents and one or
two Dollars.

The Reserve Bank of Australia (RBA) led the way in terms of innovating
money, introducing the worlds first polymer banknotes back in 1988.

Australias central bank is now on its fourth iteration of the polymer

banknotes; New Zealand cottoned on to the idea (if youll excuse the
money-based pun) in 1999 and the Bank of England (BoE) released its
first polymer note, the Fiver, in 2016. The US continues to use cotton-
based paper money. There isnt currently a timetable for the release of
the next Australian polymer notes, so dont be surprised if the money
suddenly changes while you are there.

At the same time, while you acclimatise, it may be worth double-

checking with a respectable source should you find a note you dont
recognise to make sure youre not being conned.

There are numerous security features on the new notes to make them
harder to counterfeit. Polymer notes have a distinctive feel and are
much smoother than paper money.

14
According to the RBA a genuine Aussie banknote should return to
shape after being scrunched up, although fans of crisp money might
not want to try it; these are plastic notes that will melt under intense
heat, so you cant iron them back to perfection.

The notes feature a clear window that is part of the note, rather than
being attached as a separate piece; a three dimensional image; a
holographic bird image that flaps its wings when the note is tilted; and
a separate bird image whose colours change when tilted. Be aware that
real Australian birds get annoyed when you try to tilt them.

The different denominations of Australian banknotes have plenty

of nicknames to get your head around. The $20 note is often called
the lobster or red lobster, while the $50 is called the Pineapple or
Banana. So theres no need to run and get a bucket of saltwater if you
are waiting for change and the cashier says Weve only got lobsters,
is that OK? The nicknames are usually a very obvious reference to
the notes colour, so its not that hard to discern which one someone is
talking about.

When it comes to understanding how Australian Dollars compare to

your domestic currency in terms of purchasing power, youll need to get
to grips with exchange rates and currency transfers. You can find more
information about this in our Currency Exchange section.

15
Cost of Living
How much does it cost to live in Australia?

Australia has been known as an expensive place to live, but living

costs in its most expensive cities are quickly becoming more and more
affordable.

The 2016 Mercer Cost of Living Rankings showed that Sydney had
dropped -11 places down the global rankings since 2015, coming in at
42nd place, while Perth had fallen -21 spots to 69th. Melbourne, last
year more expensive than Perth in 47th place, was ranked 71st in the
latest study. Brisbane just makes the top 100 at 96th place.

For comparison, London was the 12th most expensive city in the world
in 2015 and the 17th most expensive in 2016. According to 2015s index,
New York came in at 16th, Los Angeles at 36th and San Francisco at
37th, while Auckland was in the 61st spot. Over the past year New York
has climbed four places, Los Angeles 9 spots and San Francisco has
risen 11 ranks.

Meanwhile, Auckland is no longer one of the top five most expensive

cities in the Pacific region.

On a countrywide basis, however, Australia generally has a higher cost

of living, with a few notable exceptions. According to data supplied
in October 2016, groceries and the cost of dining out are significantly
higher in Australia than in the UK, while groceries, utilities and car
purchases are much cheaper than in the US.

Australia is more expensive than New Zealand in many ways, although

transportation and utilities costs are significantly cheaper.

16
Medical Insurance

The UK and New Zealand both have a Reciprocal Health Care

Agreement (RHCA) with Australia, meaning UK and Kiwi expats in
the country are entitled to receive free public hospital in-patient or
outpatient treatment, subsidised medicines and doctor-provided
medical treatment at surgeries or community health centres.

However, these entitlements depend upon your immigration status

- if you are a permanent resident you will be covered, but expats on
temporary visas may still be liable for their medical bills.

This can be a serious concern considering how quickly medical costs

can rack up. A trip to the emergency room, excluding additional tests,
is likely to cost upwards of $700, while a broken leg can cost around
$7,000 to heal. The only bright side is that the price tag might take your
mind off the pain.

Australias healthcare system is a synergy of government-funded,

NHS-style services and privatised services. Therefore even if you are
eligible for the governments Medicare benefits, it is a good idea to take
out private healthcare anyway if you are a UK or New Zealand national
and vital if you are from the US.

Prices vary considerably depending upon the level of care and extras
you choose, who is being covered by the policy, and the region of
Australia in which you will be living.

Cost of Owning a Car

Petrol is significantly cheaper in Australia than it is in the UK and New

Zealand, but noticeably more expensive than in the US. UK and Kiwi
drivers will notice the difference because of the vastly lower rate of tax;
whereas the fixed $0.395 per litre Australian fuel duty makes up 30%
of 2016s average fuel prices, around 70% of the price paid for petrol
and diesel in the UK is accounted for by tax.

Fuel duty in New Zealand is around double that of Australia at $0.672

per litre. While the rate of tax paid on petrol in the UK has been steadily
increasing since the mid-90s, Australian fuel excise has changed by
little more than a cent since 2001.

17
The costs of insuring your car will vary dramatically depending upon a
number of factors including the state you live in, your age, gender and
how old your car is. Data from early 2016 suggests average insurance
premiums range from around $500 to $2,600 per annum, with the
lowest costs being for a woman or man in their late 20s driving an old
car in Queensland and the highest being for a man under 25 driving a
new car in New South Wales.

Higher Costs, Higher Wages

While living costs are much higher, it is worth remembering that

Australian salaries give on average around a third more disposable
income than those in the UK, 20% more than wages in New Zealand
and marginally more than in the US. In terms of disposable income,
Australia ranks 8th on the global list, with the United States in 10th,
New Zealand 16th and the United Kingdom in 24th place.

If you are planning on finding employment in Australia, the higher rate

of pay will help to offset the increased expenditure. Its worth noting
however that, as an expat, you may have to accept a lower salaried
position than a native might secure in order to get your foot on the
career ladder.

18
Conclusion
Find out more on the Working In Australia website

Moving to Australia to work becomes a much simpler process if you

carry out a little research and planning.

This guide has highlighted some of the key points to consider, so you
will have helped yourself avoid some of the major pitfalls that come
from emigrating unprepared simply by reading it. Well done you!

Relocating can be a stressful process, but with the big things taken care
of its much easier to handle the small stuff. From finding housing to
setting up a money transfer, youll probably have noticed by now that
the best thing to do is to plan well in advance (hopefully youre not
reading this on the plane over).

As well as leaving plenty of time, make sure youve got all the bases
covered - including contingency plans - and then stay calm.

The Working In Australia website is packed full of further information

on topics such as jobs, visas, settling in and money, so make sure to
check it out.

Most of all, remember that the stress is all part of the experience; youll
quickly forget about it once youve landed.

19
 Working In Money Transfers are powered by

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