When immigrants think of relocating to another country, they need to do their homework first. Immigrants usually gather information about precisely how much money they’ll need to save aside from visas, medicals, English exams, skills evaluations, agent fees, flights, and shipping. This is not wrong. These items are the most prevalent expenditures involved with migrating to another country.
But what about the hidden fees of relocating? What if there are things that you had no idea you needed to budget for?
In this article, we want to tell you about some of the hidden costs of migrating to Australia so you can prepare in advance and budget for them ahead of time.
Estate Agent Fees
Purchasing a property in Australia is costly because buyers have to pay stamp duty, conveyance, and legal costs, in addition to the large deposit necessary.
Buyer’s agents work for clients and immigrants to discover a suitable home based on their brief, and they frequently bargain the purchase on the buyer’s behalf.
Based on the service required, buyer’s agents may charge a flat price, starting as little as $100 to attend an auction on your behalf. up to 3% of the property’s sale price plus GST, for a comprehensive search, evaluation, and negotiating service.
Exchange Rates
Due to the impact of exchange rates on the value of money transfers, devaluing the host country’s currency has detrimental effects on both present and prospective migrants, whereas appreciating it increases the degree of migration pressure on the host country.
Currency rates are where you frequently lose money. But, unfortunately, there’s no getting out of it. Even if you use your usual bank to exchange currencies, you can be certain that the price will not be lower, and there may be some hidden fees as well.
If you plan to preserve as much of your hard-earned cash as feasible, go to a reliable firm to help you transfer money.
Bank Transfer Fees
In addition to losing a little money on the exchange rate, most Australian banks will charge you extra to transfer and deposit money into your Australian bank account. This extra fee can be different from $5 to $25, and sometimes it’s more. Some Australian banks decide their fee based on the amount received, while others impose a flat cost regardless of the amount.
Before doing any money transaction, check with your bank to see how much it will cost for you to transfer your funds from outside the country.
Driver’s License
When you enter the country and settle in Australia, you will very certainly have to exchange your present driver’s license and get a new one suitable for Australia. Foreigners can normally change their foreign driver’s license to an Australian one within 3 months of arrival in the country.
However, there are two exceptions. In Tasmania, drivers must register for an Australian driver’s license within three months of receiving their visa. On the other hand, in Victoria, drivers must register within 6 months of entering Australia or receiving their visa. Drivers who have a full license from an ineligible country must take a driving test in Australia during their first 3 months.
You can go to the transport department in each state. The transport department is responsible for issuing driving licenses in Australia.
Before taking a practical exam to get a license, candidates must take a Hazard Perception Test and pass it. This test assesses their ability to identify potentially dangerous and risky circumstances. Most states require young drivers under the age of 25 to complete between 50 and 120 hours of driving training under the supervision of an instructor or someone with a driver’s license. The amount of driving hours necessary varies by state and territory.
Car Rego and Car Insurance
You’re almost certainly going to buy a vehicle when you arrive in Australia. Most individuals prepare a budget for a car or aim to obtain credit quickly after arrival in order to obtain a car loan. But don’t forget that owning a car entails purchasing car insurance and registering it (in Australia, it is called a rego).
These days, registration and insurance are horrendously overpriced. For example, a rego bill can be up to $792 over a 12-month period. That’s a significant sum of money, and if you haven’t prepared for it, you will need to recalculate your expenditures because your car insurance might be a drain on your funds.
A Rego now includes third-party insurance, but it only compensates the other driver’s personal injury claims if you’re in a crash, or it will cover your claims if no other car driver is at fault. In addition, it is totally lacking any vehicle-related content. Find out everything about what’s included and what’s not here.
Mobile Phone Costs
If you need to buy a new cellphone or smartphone when you enter Australia, consider your phone’s expense when you are planning the migrating budget to Australia from the start. This is especially important if your phone is locked or very old. If your phone is locked, attempt to have it unlocked before you move to Australia because it’ll be far less expensive than buying a new phone.
Even if you don’t require a new phone, you will require a new local sim card as well as phone minutes and data.
Sim cards may be purchased for as low as $2 apiece, and varying amounts can be purchased at the same time. For example, $30 may provide you with a set number of minutes, free national messages, and 30 days of data.
Some of the sim cards enable you to carry over the remaining minutes/data from one month to the next, while others do not. So before choosing a phone service, read the tiny print to ensure that you’ll get the most out of whichever choice you choose.
Your First Proper Food Shop
You might find your first grocery store experience a bit disturbing. You might go to a store, buy two bags of groceries, and leave the store even poorer.
If you have no idea what you are doing and go into a store, you might become sidetracked by all the new items you have never seen before, become a bit greedy, and fill your basket with all the new sparkling stuff.
Here are suggestions for making the grocery trip a bit less stressful:
- The greatest time to shop is late at night because there will be less rivalry for aisle space and fewer people in the checkout queue. On the other hand, the busiest time to go shopping is usually Saturday am, so avoid going at that time.
- Make a list of your options. Shopping with a list has two advantages: you can get whatever you need and hurry out if you know what you need. A list is also a useful money-saving technique; making and following a list ensures that you only buy what you truly require.
- Another useful money-saving strategy is to shop according to promotions. Before you go shopping, go through your supermarket’s catalog to see what’s on sale. Shopping by special offers is incredibly beneficial if you live in areas with more than one supermarket. You will end up saving you a lot of money in the long run.
- Save time by getting a shop guide. Â Most stores include written product guides that lead you to the proper aisle to help you discover things efficiently.
- If you can’t locate a product, ask a staff member because most of the time, they’ll know just where to seek what you’re looking for and will be delighted to assist.
- Bring a basket rather than a cart if you simply need a few items. A trolley is larger and simpler to fill. In addition, you must carry a basket around the store, which implies that you are less likely to make unplanned buys.
Health Insurance
Once you migrate to Australia, you have one year to determine whether or not to get private health insurance. If you do not use it during the first year and later choose to purchase private health insurance, you will be charged an additional price known as the Lifetime Health Cover loading.
The Lifetime Health Cover loading is applied to all Australians who do not obtain private health insurance by the first of July after the become 31. It also relates to immigrants over the age of 31 who do not obtain private health insurance within 12 months of their arrival in the country.
The precise cost of the Lifetime Health Cover loading is determined by your age when you get private health insurance. The cost of health insurance will vary based on your family’s composition, medical records, and the amount of coverage necessary.
School Costs
If you have children and you recently moved to Australia, it is a good idea to get into school as soon as feasible. However, this will not be cheap. They’ll require clothes and equipment, and depending on the school. You may be required to pay tuition as well.
If you know where you will be living, start to figure out what local school you want to send your children to, and contact the school about their possible tuition and price of things children need. That way, these costs may be factored into your strategy, and you’ll be ready for them when they arrive.
First Home Costs
There may be certain expenditures associated with transitioning from temporary to permanent housing. For example, if you’ve gathered a lot of possessions since your arrival, you may need to employ a removal service. For example, some utilities may also charge a connection fee on your first statement, so ensure you have a budget for this. Internet service companies frequently do the same, and they also lock you into a 12- to 24-month contract.
If you wish to obtain pay-TV, there may be set-up fees, so assure you bargain with the salesperson to get a reasonable price. Renting a place also entails paying a week or two of rent in advance, as well as a bond of 2-4 weeks rent. You might also consider purchasing contents insurance to cover all of your things. Again, search for the correct coverage and a decent cost.
Let’s Sum Up …
This article tried to inform you of what exactly you need to have a budget for. You need to have a plan and prevent the hidden costs of relocating to Australia to deter you. Prepare yourself for them, and there won’t be any significant surprises along the way.
If you want to relocate to Australia for studying or work, read our articles about Australian visas. You can access them by the menu at the top of the page.
