Unexpected Costs when Moving Overseas from Australia: What to Watch out for

Amidst the excitement of planning your international adventure, many Australians underestimate the cost of relocating overseas. Beyond the obvious expenses like flights and shipping, there are several costs when moving overseas from Australia that can catch you off guard.

If you’re planning an international move, it pays to know what to expect. Here’s a breakdown of common expenses to help you budget for your move abroad.

1. Visa and Residency Application Fees

Visa costs can vary widely depending on the country you’re moving to. While some nations offer relatively straightforward processes, others require detailed applications, legal translations, medical checks, and non-refundable fees.

Some of these costs when moving overseas from Australia often include:

• Visa processing and biometrics

• Legal or migration agent fees

• Health assessments and police clearances

• Document translations or declarations

Always check the official immigration website of your destination country for the accurate requirements and expected costs.

2. Health Insurance and Medical Coverage

Many Australians are accustomed to Medicare, but once you move overseas, you may not be covered by an equivalent health care system in your host country and may require proof of private insurance as part of your visa. Public healthcare systems abroad can be limited for non-citizens or expensive without local insurance.

Some health and medical-related expenses may include:

• Mandatory health insurance premiums

• Upfront medical costs before local coverage begins

• Exclusions for pre-existing conditions

• Emergency evacuation or repatriation coverage

This is one of the more critical unexpected costs when moving overseas from Australia, especially if you're relocating with family or have ongoing health needs. It’s important to check with your international employer to understand any coverage they may provide you as part of your employment.

3. Storage and Shipping Fees

Shipping your belongings internationally can be expensive. While you might budget for the container or air freight costs, many people forget about:

• Port handling fees

• Customs duties and taxes

• Quarantine inspections

• Long-term storage (if you’re not taking everything right away)

These costs can escalate quickly, especially if there are delays or complications with customs in your destination country.

4. Currency Exchange and Bank Fees

If you’re transferring funds from your Australian bank account, converting currency, or setting up a new account overseas, you may face a range of hidden banking fees. These include:

• Poor exchange rates from major banks

• International transfer fees

• Account setup or monthly maintenance fees abroad

• Tax reporting obligations in both countries

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When calculating the unexpected costs when moving overseas from Australia, banking fees often fly under the radar. Having an appropriate foreign currency exchange strategy and banking arrangements in place before your departure can provide you with peace of mind and save you significantly.

5. Housing Costs and Rental Bond Payments

Finding a place to live in a new country often comes with upfront costs. In many places, landlords require:

• Several months’ rent in advance

• Security deposits or non-refundable cleaning fees

• Agent or broker fees (common in cities like New York or Tokyo)

• Furniture purchases if the accommodation is unfurnished

If you’re relocating to a high-demand rental market, be prepared for those initial costs to secure your home abroad.

6. Relocation of Pets

Taking your furry friends overseas? Pet relocation involves more than just booking a flight. Pet-related costs may include:

• Export and import permits

• Veterinary checks and vaccinations

• Quarantine fees

• Special carriers and pet transport agencies

Pet relocation can be an emotionally and financially draining process when moving overseas from Australia, particularly for countries with strict biosecurity laws like the UK, New Zealand, or Singapore.

7. Tax Obligations and Superannuation Management

Leaving Australia doesn’t necessarily sever your financial obligations. You may still need to:

• Lodge an Australian tax return

• Make mandatory repayments on any outstanding HECS-HELP loan

• Understand your residency status for tax purposes

• Manage your superannuation from abroad – there are additional considerations where you have an SMSF

• Manage your investments from abroad

Consulting with an Australian Expat Financial Adviser and Tax accountant can help you to better understand your financial situation and make the most of your journey abroad.

8. Unplanned Travel Back to Australia

Family emergencies, visa issues, or unexpected changes in job status can force you to return to Australia at short notice. Emergency flights, accommodation, and transport costs can be expensive, especially if you haven’t budgeted for them.

Keeping a “just-in-case” emergency fund is crucial to prepare for these types of unexpected costs when moving overseas from Australia. As a general rule, it is encouraged to keep between 3 to 6 months’ worth of living expenses in Cash to meet those unanticipated costs.

Conclusion

Relocating to another country can be a life-changing opportunity, but it’s essential to be well-prepared when departing Australia. There are numerous unexpected costs when moving overseas from Australia that many Expats overlook. By budgeting for more than just the basics and planning for contingencies, you can transition smoothly into your new life abroad.

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.