Moving to the UK from Australia: Financial Tips for Aussie Expats

Making the move from Australia to the UK is a popular choice for many Aussies due to the vast career opportunities, cultural experiences, and a chance to explore Europe with ease. For Australians preparing to make the move, it’s essential to prepare yourself financially. This guide breaks down everything Aussie expats need to know to make a smooth financial transition, from banking and taxes to superannuation and cost of living.

Understand the Cost of Living in the UK

While the UK and Australia are both developed economies with high living standards, the cost of living can vary significantly depending on where in the UK you're moving to. London, for example, is notoriously expensive, particularly in terms of rent, transport, and dining out.

Key Expenses to Compare:

• Rent: Central London can be 30–50% more expensive than major Australian cities like Melbourne or Brisbane.

• Utilities & Council Tax: Council tax is a significant expense that varies by borough. Budget £100–£200/month.

• Transport: While public transport is extensive, it’s not cheap. Consider purchasing an Oyster Card or travel pass.

It’s advisable to estimate monthly expenses and create a preliminary budget before moving to the UK from Australia.

Set Up Your UK Bank Account

One of the first steps after moving to the UK from Australia should be setting up a UK bank account. Having a local account makes it easier to get paid, pay rent, and manage everyday expenses.

What You’ll Need:

• Proof of identity (passport)

• Proof of UK address (tenancy agreement or utility bill)

• National Insurance number (optional but helpful)

Major UK Banks include Barclays, HSBC, NatWest, Lloyds, and Monzo (a digital-first option popular with expats). Some banks like HSBC offer international accounts that can be opened from Australia, allowing you to transfer funds before you arrive.

Transferring Money Internationally

Currency exchange and international transfers can eat into your savings if not done wisely. When moving to the UK from Australia, avoid using your Aussie bank for routine transfers.

Some better options include:

• Wise (formerly TransferWise): Transparent fees and excellent exchange rates

• OFX or Revolut: Ideal for regular transfers or one-off large sums

• Multi-currency accounts: Consider keeping a dual-currency setup for flexibility

Considering transferring some GBP in advance to lock in a favourable exchange rate and fund your initial UK expenses.

Taxes: Understand Your Obligations

Taxation is one of the most complex aspects of moving to the UK from Australia, especially if you have income or assets in both countries.

What You Need to Know:

• UK Residency Rules: Once you live and work in the UK, you're typically subject to UK income tax.

• Australian Tax Residency: Leaving Australia doesn't automatically make you a non-resident for tax purposes.

• Double Taxation Agreement (DTA): Australia and the UK have a DTA to help prevent being taxed twice on the same income.

It’s encouraged to speak to a tax accountant with experience working with Australian Expats to understand your tax residency status and obligations in both countries.

Superannuation and UK Pensions

When moving to the UK from Australia, many expats wonder what happens to their Australian superannuation. Here’s what you need to know:

• Your super stays in Australia and remains invested. If you meet a condition of release, you can apply for withdrawal, though this is often restricted to those at least age 60.

• You cannot transfer super into a UK pension unless the scheme is a QROPS (Qualifying Recognised Overseas Pension Scheme) — most are not.

• The UK State Pension requires at least 10 qualifying years of National Insurance contributions.

  
  

As an Australian Expat, it’s crucial to keep track of your superannuation benefits and ensure they remain on track with your retirement goals. If you have multiple funds, consider consolidating them before leaving Australia.

Health Insurance and the NHS

The UK has a public healthcare system, the National Health Service (NHS), which provides free or subsidised healthcare to residents. As an Aussie Expat:

• If you're on a visa longer than 6 months, you'll pay the Immigration Health Surcharge (IHS), granting access to the NHS.

• You can also opt for private health insurance for faster access to specialists and elective procedures.

  
  

Budget for the IHS fee in your visa application, and consider whether private insurance is worth it based on your health needs.

Retirement Planning as an Expat

Your retirement plans may shift as you establish a life in the UK. When moving to the UK from Australia, it’s worth thinking long-term. Here are some options to consider:

• Continue investing in your Australian super or a portfolio outside of super

• Contribute to a UK pension or private scheme

• Diversify with ISAs (Individual Savings Accounts) - a tax-efficient UK savings tool

Moving abroad can be a great catalyst to talk to an Expat Financial Adviser, as there may be opportunities that are identified before you move or when you initially settle. It’s advisable to engage an adviser familiar with both the UK and Australian systems to build a tailored retirement strategy.

Building Credit in the UK

Your Australian credit history won’t follow you to the UK. This can make it harder to rent a flat or apply for a credit card.

How to Start Building Credit:

• Open a UK bank account

• Get on the electoral roll (if eligible)

• Apply for a low-limit credit card or use a credit-builder loan

It’s important to pay all bills on time and keep credit usage low to build a strong UK credit score over time.

Conclusion

Moving to the UK from Australia is a major life move that can open doors both personally and professionally. But it also comes with serious financial planning needs. The sooner you start preparing, the smoother your transition will be. These financial tips for Australians moving to the UK are designed to help you become secure, confident, and ready for the journey ahead.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.