Five finance tips for Brits moving to Australia

Moving to Australia? Emma Lunn, personal finance expert and former Brit-in-Australia, shares the tricks and tips that'll get you on a firm financial footing. From money tranfers to understanding tax, these are her 5 top tips.

Wanted Down Under and Home & Away may make life in Australia appear to be a succession of surf lessons and BBQs, but there’s more to moving to the other side of the world than just packing your boardies and abbreviating every other word you say.

Take it from someone who’s got the T-shirt: Australia isn’t cheap. I lived there for 2 years and was routinely horrified at the high cost of everything from rent or a supermarket shop to gym membership.

On the flip side, the free stuff is great. There are literally hundreds of beaches, some amazing national parks, and the weather is generally awesome.

If you are planning to move to Australia for a job, an exciting foreign lover, or simply in search of a change, you need to get your finances sorted.

Here are 5 tips to get you started.

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1. You need a visa

You can’t just show up in Australia, hit the beach and start a new life – you need a visa if you want to live there permanently, or work, and don’t have an Australian passport.

There are various visas on offer such as a working holiday visa (if you’re under 30), a skilled migration visa (if you have a certain skillset), or an employer-sponsored visa (if you have a job in Australia). You might also be able to get a partner visa if you have an Australian partner (but you don’t need to be married).

There’s more visa information on the Australian government website. Visas don’t come cheap – a partner visa costs more than AU$7,000. Who says love don’t cost a thing?

A visa is the first step to Australian residency and, eventually, citizenship.

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2. How to open an Australian bank account

Australia’s four biggest banks are Commbank, ANZ, National Australia Bank, and Westpac.

You can normally open a bank account with one of these before you arrive using your UK identity documents and address. Once you arrive in Australia, you’ll need to visit a branch to show your documents and update your address with your new Australian one.

If you wait until you’re in Australia to open a bank account, you’ll need to show ID such as your passport (with appropriate visa), an Australian driving licence (easy to get), or a Medicare card (Australia’s state health system).

Australian debit cards work on contactless payments just like in the UK, albeit with a higher transaction limit of $100 (about £53). Contactless payment is referred to as Visa payWave or MasterCard PayPass.

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3. Moving money between countries

At some point you’ll want to exchange British pounds into Australian dollars.

When doing so, it’s important to look at both the exchange rate and any fees. Using your bank might be convenient but it almost certainly won’t be the cheapest option.

A Transferwise borderless account might be the answer. It allows customers to quickly and conveniently switch between multiple currencies for a fair price, and comes with a snazzy green Mastercard debit card which means you can easily spend abroad in different currencies.

You’ll get local bank account details for both the UK and Australia (plus the US, Europe and New Zealand) – so you can get your Australian salary paid into your Transferwise account if you want to.

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4. Start building a credit record

As a Brit, you might find it difficult to borrow money in Australia.

Your credit score doesn’t transfer internationally so Australian banks will have no way of knowing whether you’re a good bet for paying money back.

You can build your credit history in Australia in the same way you do in the UK. For example, you should aim to have a mobile phone contract or utility bill in your name, and pay your bills and any debts on time. If you apply for credit, try not to make too many credit applications in a short space of time.

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5. Get a tax file number (TFN)

If you’re working in Australia, and have a relevant visa, you’ll need a tax file number (TFN).

A TFN is useful for all sorts of reasons – it will help you pay the right amount of tax on your income and savings interest, and apply for state benefits. You’ll also need it if you plan to set up a business in Australia.

You can apply for a TFN online once you’re in Australia at the Australian Taxation Office website. You’ll need your passport, visa, and a postal address in Australia.

Australia has a double-taxation agreement with various countries including the UK. This means you shouldn’t be taxed twice on any income from abroad.

And, remember, tax advice varies immensely for each individual's working situation, so it's crucial that you consult with a professional and make sure that your personal tax requirements are fulfilled.

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Brit in Australia? Wise can help you manage your money across borders more cheaply and easily. Join our 6 million customers at wise.com, or download our Android or iOS app.