Retiring to Australia means compliance with certain requirements that has been set by Australian immigration authorities. You need to be at least fifty five years of age and must bring a certain amount of income to the country, currently pegged at Aus$25,000 per annum. There is also a requirement for a reputable medical insurance coverage from Australia. You also need to fulfill required health and character requirements. The total length of the retirement visa is for four years and current policies are being undertaken to lengthen this period.
After the visa requirements of retiring to Australia, you need to understand another essential requirement of residency in the country. This is the tax system of the country. Many have viewed the rates in the country as incredibly high and the rates assessed are dependent on one’s income after obtaining their TFN. Many taxes are withheld on income, either from wages, business income and capital gains. Another tax one needs to be wary of is the Goods and Services Tax and this is a tax imposed on all goods and services exchanged in the country, save for some exempted products. The rate is pegged uniformly at one eleventh of the value of the item bought.
Another aspect of retiring to Australia that needs attention is the system of healthcare in the country. The federal government subsidizes two thirds the cost of Medicare while the rest is shouldered by local authorities. Also, private medical insurance helps in footing the cost of post procedure medication, as the PBS allows only in care medication benefits. The system though has resulted in a quality of healthcare better than the United Kingdom and the United States. With the overall cost in money lower in Australia, many have chosen to retire in the country especially if they have pre-existing medical conditions.
One final factor that needs to be considered when retiring to Australia is the cost of living in the country. Overall, it may seem that the cost of basic commodities in the country is much more expensive due to the costs of importation to Australia. The residence of the individual retiree is also a major factor since many urbanized cities in the country are amongst the most expensive in the world. The Expat Forum has advised that “it seems better to buy at small local stores since the food is more varied, of better quality, and often cheaper than in the big supermarkets.”
As can be seen, retiring to Australia is a process that one undertakes. You need to comply with requirements, understand the tax and healthcare system and be wary of the cost of living in the country to fully enjoy the benefits of living Down Under.
This article has been provided by Jose Marc Castro, the online editor at the Expat Forum.com- the primary online community for expats. The site also provides information and advice on matters such as Retiring to Australia.
