Moving to Australia from the UK: the financial plan
An Australian salary looks generous next to a UK one, and superannuation makes it look better still. What decides whether the move works is the gap between take-home pay and housing in the specific city you land in. Here is how to price the whole move before you accept an offer.
Compare take-home, not headline pay
UK gross pay already has employer pension and National Insurance baked into a familiar payslip. In Australia, the advertised figure usually excludes 11.5% employer superannuation, and there is a 2% Medicare levy plus a surcharge if you earn above the threshold without private hospital cover. Convert both sides into one currency, subtract tax, then subtract rent in the actual metro — that is the number worth deciding on.
- • Add employer super on top of the Australian offer before comparing.
- • Subtract the Medicare levy and any private health cover you choose to hold.
- • Price rent in Sydney, Melbourne or Brisbane separately — they are not interchangeable.
- • Put visa, shipping and bond costs in year one, not in a footnote.
London
Sydney
Melbourne
London vs Sydney vs Melbourne — cost of living side by side
London figures converted at ~£1 = A$1.95 so every column reads in Australian dollars. FX moves — treat the converted column as directional.
| Metric | London (GBP) | London (AUD) | Sydney (AUD) | Melbourne (AUD) |
|---|---|---|---|---|
| Median rent (monthly) | £2,400 | A$4,680 | A$3,400 | A$2,500 |
| Median home price | £565K | A$1M | A$1M | A$900K |
| Median salary | £55,000 | A$107,250 | A$105,000 | A$95,000 |
| Effective tax rate | 33.5% | — | 31.8% | 31.0% |
| Mortgage burden | 42.0% | — | 48.0% | 38.0% |
| Childcare (monthly) | £1,600 | A$3,120 | A$2,400 | A$2,100 |
| Overall score (0–100) | 72 | — | 72 | 74 |
The pattern most UK movers hit: Sydney trades a strong job market for housing costs that feel familiar to a Londoner, while Melbourne gives back a meaningful chunk of rent and purchase price for a slightly smaller salary pool. If affordability is the priority, London → Melbourne is usually the stronger financial trade.
The eight financial moves that matter
Skilled independent and employer-sponsored visas carry government charges of roughly AUD 4,800 for the main applicant with substantial add-ons per partner and child, before skills assessment, English testing, medicals and police checks. Agent fees, if you use one, sit on top.
The Statutory Residence Test decides when you stop being a UK taxpayer, and split-year treatment usually applies in the year you leave. Keep flight records, tenancy end dates and employment start dates — HMRC judges the facts, not your intent.
The UK year ends 5 April and Australia's ends 30 June. Your first eighteen months involve a UK return, a part-year Australian return, and careful sequencing of any bonus, share vesting or property sale so it falls on the side you want it taxed.
Most people leave a UK workplace or SIPP pension in place and simply start accumulating Australian super. Transferring requires a QROPS-registered super fund, is effectively closed before age 55, and interacts with contribution caps — get advice before moving any pot.
The UK has a reciprocal agreement giving limited immediate cover, and permanent residents get full Medicare. You still pay a 2% Medicare levy, plus a surcharge of 1–1.5% if you earn above the threshold without private hospital cover — which is why many higher earners buy a basic policy purely to avoid it.
Employer super of 11.5% sits on top of the advertised salary and is genuinely yours, but it is locked until preservation age. Treat it as retirement saving in the comparison, not as spendable income, or you will overstate your Australian take-home.
Australian rentals are advertised weekly and usually require four weeks' bond plus two to four weeks in advance, with no local rental history to lean on. Foreign buyers also face FIRB approval and state surcharge duty until permanent residency, so renting first is the norm.
A 40ft container from the UK typically runs GBP 3,000–8,000 with six to ten weeks at sea, so you rent furnished or buy basics in the gap. If you keep a UK property or savings, decide which currency your emergency fund lives in and avoid retail bank FX spreads on the big transfers.
A 12-month relocation timeline
- Months 12–9: Confirm the visa pathway, book the skills assessment and English test, and model the Australian offer after tax and super against your current UK take-home.
- Months 8–6: Lodge the visa. Shortlist cities on housing and job market rather than reputation. Decide what happens to your UK property, ISAs and pension.
- Months 5–3: Get medicals and police checks done. Quote shipping. Plan the currency transfer strategy and open an Australian bank account remotely.
- Months 2–1: End the UK tenancy or arrange letting, notify HMRC with a P85, book flights, and line up short-term Australian accommodation for the first six weeks.
- Arrival and after: Apply for a Tax File Number, enrol in Medicare, choose a super fund, start building Australian rental and credit history, and calendar both tax filings.
Frequently asked questions
How much does it cost to move to Australia from the UK?
Budget for the visa itself (a skilled visa runs roughly AUD 4,800 for a main applicant plus more per dependant), skills assessment and English testing, medicals and police checks, flights, shipping a container (GBP 3,000–8,000), and two to three months of Australian rent up front as bond plus advance. A family should plan on GBP 15,000–25,000 all-in before the first pay cheque arrives.
Do I still pay UK tax after moving to Australia?
Once you break UK tax residence under the Statutory Residence Test you generally pay UK tax only on UK-source income such as rental profits. Australia taxes residents on worldwide income from the date you become resident, and the tax years do not line up — the UK runs to 5 April and Australia to 30 June, so your first year involves a UK split-year claim and a part-year Australian return.
What happens to my UK pension?
A UK workplace or personal pension can usually stay put and be drawn later, with the UK–Australia treaty generally giving Australia taxing rights once you are resident. Transferring into an Australian fund is only possible to a QROPS-registered super fund and is restricted after age 55 with contribution caps, so most people leave the UK pension where it is and start building super from scratch.
Is Sydney or Melbourne cheaper than London?
Housing is the deciding factor. Sydney is typically the most expensive Australian metro and can rival or exceed London on rent, while Melbourne usually lands meaningfully below Sydney for both rent and purchase prices. Australian salaries also include 11.5% employer superannuation on top of the headline figure, which UK candidates routinely forget to add when comparing offers.
This guide is general information, not tax, migration or financial advice. Visa charges and tax rules change — confirm your situation with a registered migration agent and a cross-border accountant.
Related guides
Test your UK → Australia move first
Enter your current household and the Australian offer. FuturePath runs the tax, currency and cost-of-living math so you can see the after-tax outcome years ahead.