🇦🇺 Moving to Australia: tax, residency and cost of living

Key facts

Top income tax

47%

Corporate tax

30%

Capital gains

23.5%

Wealth tax

No

Inheritance tax

No

Cost of living index

72

Safety

8/10

Internet quality

7/10

Visa-free destinations

182

Foreigners can own property

No

Residency in

0 months

Citizenship in

0 years

Taxes

Australia taxes residents' worldwide income progressively: tax-free up to A$18,200, then 15% (cut from 16% on 1 July 2026), 30%, 37% and 45%, plus a 2% Medicare levy so the combined top rate is 47%. Capital gains are added to income but get a 50% discount if held over a year (effectively up to about 23.5%), and the main residence is exempt. There is no wealth, inheritance or gift tax (estate duties were abolished in 1979) and GST is 10%.

Residency and visas

Australia uses a points system (SkillSelect): the Skilled Independent visa (subclass 189), the state-nominated Skilled Nominated (190) and employer-sponsored visas select on age, education, experience and English. Permanent residence is well defined but competitive (invitation based on your points score), and citizenship follows after four years. Business and investor visas have been sharply curtailed in recent years.

Property ownership

Non-resident foreigners cannot buy established dwellings until 30 June 2029: the temporary 2025 ban was extended in the 2026-27 budget. New builds are allowed, with prior FIRB approval and a purchase fee. Permanent residents, New Zealanders and spouses of Australians are exempt. There is no annual national property tax, but there is state stamp duty with surcharges for foreign buyers and, in some states, a vacancy fee.

Cost of living and quality of life

Australia consistently ranks high on quality of life, safety, healthcare (Medicare) and education, with a mild climate and plenty of space. The downside: high housing costs in Sydney and Melbourne and the vast distance to Europe (a twenty-hour flight or more). English is the official language, which makes the move easy for many expats.

Passport and mobility

The Australian passport ranks 7th on the Henley index in 2026 with roughly 182 visa-free destinations. Australia accepts dual nationality and naturalisation is possible after four years of lawful residence (at least one as a permanent resident), making the passport a realistic and valuable end goal alongside your current one.

Residency and visas

• Skilled Independent visa (subklasse 189, puntensysteem SkillSelect): permanente verblijfsvergunning voor gekwalificeerde werkers zonder sponsor; uitnodiging op basis van je puntenscore (leeftijd, opleiding, werkervaring, Engels)
• Skilled Nominated visa (subklasse 190): permanente verblijfsvergunning met nominatie door een staat/territorium; nominatie geeft grote puntenbonus richting uitnodiging
• Employer-sponsored visa (o.a. subklasse 186 ENS): permanente verblijfsvergunning via een Australische werkgever die de functie sponsort en aan de arbeidsmarkttoets voldoet
• Partner/gezinsvisa: Australische burgers en permanente residenten kunnen partner en kinderen sponsoren voor (tijdelijke gevolgd door) permanente verblijfsvergunning

Why people move to Australia

• Strong passport, dual nationality possible

  The Australian passport gives access to roughly 182 destinations without a prior visa and sits 7th worldwide. Australia recognises dual nationality and naturalisation is possible after four years of lawful residence, so it is a realistic second passport alongside your current one.

• Points system for skilled migration

  Through SkillSelect (Skilled Independent 189, Skilled Nominated 190 and employer-sponsored visas), permanent residence for qualified applicants is clearly defined on age, education, experience and English. The path is competitive (invitation based on your points score) and criteria-driven; business and investor routes have recently been sharply curtailed.

• Top-tier quality of life, but honestly: high tax

  Australia offers safety, strong institutions, a mild climate and public healthcare, but it is a high-tax country: the combined top rate is 47% (incl. Medicare levy) and residents are taxed on worldwide income. For anyone wanting to lower their tax burden, Australia is more a country to leave than a destination, unless quality of life and passport outweigh the rate.