How income tax in Australia works for foreigners (UK guide)
Find out how income tax in Australia works for foreigners in our handy guide for UK expats, overseas workers and digital nomads.
If you’re thinking about starting a new life in Australia, it’s important to weigh all factors before you make a decision. The climate is far sunnier than in the UK and English is the official language, but you may not enjoy the extreme heat or the country’s remoteness.
We’ve created a list of pros and cons of living in Australia vs the UK to help you make an informed choice. We’ll also include important information on safety in Australia and highlight some of the best places to live.
And if you want an easy way to manage your money in Australian dollars, check out the Wise account from the money services provider Wise. It’s not a bank account but offers some similar features, and your money is safeguarded.
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Here’s a quick list of the pros and cons of living in Australia vs the UK:
Pros | Cons |
---|---|
Good healthcare | High cost of living |
Warm weather | Far away from other countries |
Outdoor lifestyle | Extreme weather |
Large expat community | Big cities are spread far apart |
Easy to open a bank account as a foreigner | Dangerous wildlife |
There are many upsides to living in Australia. Let’s go through some pros of life Down Under.
One of the most important aspects of life in any country is the healthcare system and its quality. According to some sources, Australia ranks among the top five countries in terms of healthcare.¹
Australia’s public healthcare system, known as Medicare, provides all essential medical appointments and hospital treatments either free of charge or at a low cost, along with necessary medicines. Services that are not covered, such as dentistry and physiotherapy, can be accessed through high quality private health insurance.²
Australia also has a reciprocal healthcare agreement with the United Kingdom, meaning you can still receive care until you become a resident.²
Australia’s warm climate is one of the main reasons both visitors and expats are attracted to the country. The weather supports a wide range of outdoor activities, including swimming and surfing. As Australia is in the southern hemisphere, the seasons are the opposite of those in the United Kingdom, although there are still four distinct seasons.
During the summer months, temperatures in Australia typically range from 20℃ to 37℃. Winters are milder than in the UK, with temperatures ranging from 11℃ to 30℃, depending on the region.³
Speaking of outdoor activities, the weather and lifestyle of Australian locals allow for plenty of time spent outside. Whether it is on one of the many beaches or in the country’s lush green parks, you will have the opportunity to enjoy the surroundings and reconnect with nature. In fact, Australia has more national parks than any other country, with close to 700 in total!⁴
Australia has a large expat community, with over 30% of its residents born overseas.⁵ Thanks to various visa options, such as the Skills in Demand visa scheme, many foreigners have made Australia their home. The number of temporary residents is even higher, including those on the Working Holiday visa. And since there’s no language barrier, it’s easier to meet new people and make friends.
Opening a bank account in Australia is quite straightforward and simple. Expats can open accounts after providing proof of an Australian residential address and some form of ID, such as your passport or birth certificate. Some banks in Australia even allow newcomers to open an account online.⁶
You can also check out non-bank alternatives, like the Wise account, to manage your money in Australia.
Australia offers high salaries and has one of the highest gross national incomes (GNI) per capita in the world. On average, the GNI per person exceeds $63,000. Although earnings vary depending on profession and location, Australia still ranks as the 12th highest earning country globally, above the Netherlands, Sweden and Hong Kong, to name a few.⁷
Although Australia might be the perfect destination for many, there are some drawbacks to living there. Here are some of them.
Although Australia boasts high salaries, it can be a more expensive place to live than the United Kingdom. According to Numbeo’s Cost of living by country index, Australia is the 15th most expensive country in the world. For comparison, the UK is at 19th place.⁸
According to this list, groceries cost more in Australia compared to the UK and the cost of living plus rent index is bigger. Although the local purchasing power is greater, it’s important to take all factors of the cost of living in Australia into consideration.⁸
Due to its geographical location, it can be hard for your family and friends from the UK to travel to Australia, as well as for you to visit other countries. As Australia is quite far away from Europe, you’ll need to take very long flights and possibly have multiple layovers in order to reach your destination. Although Oceania and parts of Asia are easy to reach, other areas aren’t, so this might be an issue if your lifestyle requires frequent travel.
Australia’s warm summers and mild winters can be a wonderful change from the UK’s weather, but some parts of the country are prone to quite extreme climate events. In fact, scientists warn that long heatwaves and heavy rainfall may become the new normal in the near future.⁹
In case this trend continues, flash floods and bushfires could pose significant risks for Australian infrastructure, wildlife and, most importantly, human lives.
Australia has five cities with populations over one million, and a number of others with populations in the hundreds of thousands.¹⁰ However, these cities are widely spaced. Also, if you choose to live in one of those smaller cities, accessing the amenities of a major metropolis can be challenging.
For example, the distance between Perth and Melbourne is over 2,700 km, while Sydney and Melbourne are 713 km apart. You’ll need to travel 1,375 km from Melbourne to Brisbane and 654 km from Adelaide and Melbourne.¹¹
Various dangerous animals go hand in hand with Australia’s diverse landscapes and warm climate. Although you might never come across them, the country is home to numerous venomous spiders, snakes and marine creatures.
Here’s a quick glimpse of life in Australia through some facts and statistics.
💰 Currency | Australian Dollar (AUD) |
---|---|
🗣️ Language | English |
👥 Population | 26,931,198¹² |
📊 % of expats⁵ | 31.5% |
🇬🇧 Number of British nationals | over 1.1 million¹³ |
☁️ Weather | A large range of climate zones (tropics in the north, arid in the interior, temperate in the south), with daily temperatures varying by region |
One of the biggest decisions when moving to Australia is choosing where to live. The five largest cities are Sydney, Melbourne, Brisbane, Perth, and Adelaide, with many smaller cities and towns to consider.
If you’d like to spend more time in nature, you might like Cairns, Hobart, or the Gold Coast. All cities allow a break from the bustling city noise with plenty of outdoor activities and a stronger sense of community.
A good compromise between these two lifestyles might be Canberra, the Australian capital. While it’s not a densely populated metropolis, it still offers a range of career and educational opportunities.
Yes, Australia is generally safe. Sydney and Melbourne rank among the world’s top 10 safest cities, according to the Economist Intelligence Unit’s Safe Cities Index. However, caution is advised when exploring the Australian wilderness, as these areas can be unpredictable.¹⁴
Sources used:
Sources last checked on date: 02-May-2025
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