Five Things You Need To Know About Living Costs In Australia

One of the primary concerns you should be preparing for are the living costs in Australia once your visa to the country has been issued. You are not the only one that have been crunching the numbers before even leaving their home country, as there are many differing advisories regarding the living costs in Australia. To help you in this forward planning, here are some items of costs that need to be factored in when projecting your costs in Australia.

Taxes. Taxes in Australia are quite high, similar to the levels in the United Kingdom. Most of the taxes in Australia are withheld at the source, meaning at the source of income. The system is progressive, with 40% at base rate while moving up to 45% when individuals earn more than Aus$180,000. The high cost of taxes though is well worth the cost as the public services in the country are top-notch. As the system is in place, taxes figure heavily in your overall financial capacity.

Healthcare. The public health care system in Australia is funded by a mandatory 1.5% levy from the population. With this, many have started to opt for private health insurance in order to lower the overall costs of health care. Since health care costs are quite steep in Australia, you need to factor in the costs of the levy and private insurance premiums into your overall computation of living costs in Australia.

Food and Drinks. Compared to other countries, the cost of food and drinks in Australia is relatively cheaper. This general cost savings when you have imbibed the Australian way of living would be greater as you get used to living in the country. One tip is keeping away from high end restaurants and dining places in the highly urbanized areas of Melbourne, Sydney, Perth and Adelaide. These areas would certainly charge more but the overall living costs in Australia would be largely dependent on an individuals taste and preferences when living in Australia.

Transportation. The enormity of the country makes transport costs quite a burden when computing for the living costs in Australia. Despite the heavy investments in transportation undertaken by the Australian Federal Government, the sheer size makes for a sizeable chunk of daily costs for an individual in the country. There is also a vast network of airports and other means of transportation available to many when traveling all across the country. Compared to owning and maintaining a car though, using public transportation in Australia is much more cost effective.

Education. The costs of education have been steadily increasing in the past few years. This is due to the increased number of private schools as well as immigrants into the country. Though the state finances the costs of education from kindergarten to grade 12 at Aus$93,000, catholic schools cost twice that while private school costs four times as much. If your finances are quite tight, the public school system is still the most cost effective because of the high standards in the school curriculum.

The identified factors above are some of the critical points when computing for living costs in Australia. These eat up a major chunk of finances for an individual and despite their high costs overall Australia is still a favored destination for many immigrants. As the living costs increase, as Australia Forum projects that this will be partly offset by an increase in the standard of living, employment prospects and economic growth as a whole.