Moving across the world to Australia now costs an average of $71,000 including visas, according to research undertaken by global money transfer giant Wise.
Newcomers face repeated bill shock months after settling, driven by unexpectedly high rents, bonds, and fluctuating fuel prices. These costs are exacerbated by difficulties finding employment, nine.com.au reported.
“I think you get compensated at a higher salary at a higher rate in that cost of living, and I found that really the salaries aren’t as high in Australia in general,” Aimee Chimera told nine.com.au.
Chimera, a 31-year-old from New York City, spent about $10,000 moving to Melbourne with her partner in August. “Surprisingly, the cost of clothing is higher here.” Aimee Chimera, a 31-year-old from New York City, said her savings were blown out by shipping fees, airline tickets, and the massive expense of furnishing a home.
Visa Fees and Rent Shock
Ania Majdan, 34, spent tens of thousands of dollars on visas, immigration lawyer fees, English lessons, and health insurance after moving from Poland to Melbourne following the COVID-19 pandemic.
Majdan was particularly shocked by local rental prices.
“When I saw the rent price, I was like, ‘Oh, that’s probably for a month.’ But it was actually for a week,” she told nine.com.au.
Irish citizen Eva Watters, 26, said that visa conditions inflated her moving costs by thousands of dollars. Watters initially moved to Melbourne before relocating to Far North Queensland to fulfill work visa requirements.
“A lot of the places are unfurnished. So finding beds, fridges, things that you wouldn’t think you’d need, as you don’t know how long you’re going to be here for,” Watters told nine.com.au.
Caoimhe Daly, who moved from Ireland in 2023, said that expenses continued to snowball beyond initial flights and visas. “I didn't realise how [almost] every apartment in Sydney or Melbourne came unfurnished,” Caoimhe Daly, who moved from Ireland in 2023, said, while fully furnished units commanded a premium price.
Financial Stress in Victoria
Wise data identified Victoria as the financial stress capital in Australia for expats. Nearly 60 percent of surveyed individuals experienced moderate to extreme financial stress.
Among those interviewed, 46 percent cut back on regional road trips, 36 percent reduced pub visits, 24 percent trimmed dating expenses, and 33 percent compromised on housing quality to afford living in Melbourne.
Wise product expert Holly Bowe said everyday expenses produced the most unexpected blows to the wallet.
“In the data we saw people are actually cutting back on things, like travelling back to see their family, or switching out groceries for cheaper items,” Bowe told nine.com.au.
Wise opened a physical pop-up branch in Melbourne to assist expats with cross-border finances and introduced a new Everyday Account allowing currency exchanges alongside local transfers.
Housing and living costs vary by location
Housing remains the largest expense for people settling in Australia, particularly in major urban centers like Sydney and Canberra.
Public transportation is generally efficient in major cities with reasonable fares, while car ownership adds expenses through fuel and insurance. In New South Wales, drivers must maintain Compulsory Third Party Green Slip coverage from providers like NRMA Insurance.
Medicare helps offset medical costs for residents, while utilities and groceries vary significantly depending on location.
Why expats face higher costs and financial stress
Why do expats face higher costs after arriving in Australia?
Expats frequently encounter unexpected expenses due to unfurnished rental properties, bond payments, high utility bills, and fluctuating fuel prices combined with initial employment delays, according to nine.com.au.
Which region reports the highest financial stress for newcomers?
Victoria emerged as the financial stress capital in Australia, with nearly 60 percent of surveyed expats experiencing moderate to extreme financial stress, Wise data showed.
What specific lifestyle cuts do newcomers make to save money?
Survey data revealed that 46 percent of expats cut back on regional road trips, 36 percent reduced pub visits, 24 percent cut dating costs, and 33 percent compromised on housing quality.
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