Australia is one of the most sought-after destinations for expats living abroad due to its high quality of life, strong economy, and stable political environment.
‘How to Become an Expat in Australia’ will delve into the process of becoming an expat in Australia which requires careful planning, especially regarding visa eligibility, financial preparation, and lifestyle adjustments.
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Expats must navigate Australia’s strict immigration policies, which prioritize skilled workers, business investors, and students.
How to Become an Expat in Australia: Choosing a Visa
The first step in moving to Australia is determining the appropriate visa type. Australia offers a range of temporary and permanent visas based on employment, investment, study, and/or family connections.
Each visa has specific eligibility criteria, application processes, and residency pathways.
Skilled Work Visa (Temporary & Permanent Residency Pathways)
Australia prioritizes skilled migrants through points-based visas and employer-sponsored visas. These allow expats to live and work in the country while offering pathways to permanent residency (PR). Examples include the following:
- Skilled Independent Visa (Subclass 189) – A points-tested visa that does not require employer sponsorship. Applicants must be under 45 years old, have qualifications in an in-demand occupation, and pass a skills assessment and English test.
- Skilled Nominated Visa (Subclass 190) – Requires state or territory nomination. Applicants receive extra points toward their visa application. Nominees must commit to living in the sponsoring state for a specified period.
- Skilled Work Regional (Provisional) Visa (Subclass 491) – For skilled workers under 45 willing to live in regional areas. Offers a pathway to PR after living and working in a regional area for at least three years.
Employer-Sponsored Work Visa
Expats with job offers from an Australian employer can apply for employer-sponsored visas. These visas require labor market testing, where employers must prove no suitable local worker is available. Examples are the following:
- Skills in Demand (SID) Visa (Subclass 482) – Requires employer sponsorship and allows workers to stay for up to four years (five years for Hong Kong passport holders) in most cases. Some workers may transition to PR after working for the same employer.
- Employer Nomination Scheme (ENS) Visa (Subclass 186) – Offers direct PR to skilled workers nominated by an Australian employer.
- Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494) – Designed for jobs in regional Australia, requiring a five-year commitment before applying for PR.
Business and Investment Visa
Expats looking to invest or start a business in Australia may qualify for Business Innovation & Investment Visas. These visas often have high financial requirements but offer permanent residency pathways.
- Business Innovation & Investment (Provisional) Visa (Subclass 188) – Temporary visa for entrepreneurs, investors, and business owners. Requires a couple of million AUD as the total net business and personal assets, or a minimum investment, depending on streams.
- Business Innovation and Investment (Permanent) visa (Subclass 888) – This visa allows holders of certain visa to stay in Australia permanently and continue working on their businesses.
- Investor visa (Subclass 891) – available for holders of Business Skills (provisional) visa who have lived in Australia for 2+ years in the 4 years immediately before the application. Minimum AUD1.5 million investment must have been held in your (and your partner’s) name for 4+ years. You can continue operating your business and live in Australia, with a possibility to apply for a citizenship.
- Business owner visa (Subclass 890) – If you have had one of the eligible types of visa, have lived in Australia for at least 1 year in the 2 years immediately before the application, and have owned and managed businesses in the country for 2+years, you may consider applying for this visa, which will open the door for the citizenship.
Student and Graduate Visa
Expats pursuing education in Australia can apply for student visas, which allow part-time work during studies. After graduation, some students can transition to post-study work visas.
- Student Visa (Subclass 500) – Allows full-time study and work of up to 48 hours a fortnight, after their course of study started. Applicants must prove financial capacity and maintain health insurance.
- Temporary Graduate Visa (Subclass 485) – For international students who have completed Australian degrees. Grants 1 to 3 years of work rights based on qualification level.
Retirement and Family Visa
- Parent Visas (Subclass 103, 804, 864) – Allows parents of Australian citizens and permanent residents to migrate. Processing times are long (up to 30 years for Subclass 103).
- Contributory Parent Visa (Subclass 173, 143) – Faster processing (5–7 years) but requires a significant financial contribution (over AUD 40,000 per applicant) for a permanent settlement.
- Partner Visa (Subclass 820/801, 309/100) – For spouses or de facto partners of Australian citizens and PR holders. Leads to PR after two years.
Australia Visa Eligibility Requirements
To qualify for an Australian visa, expats must meet strict eligibility criteria set by the Department of Home Affairs. Requirements vary based on visa type but typically include skills assessments, English proficiency tests, health and character checks, and financial proof.
Skills Assessment for Work Visas
Expats applying for Skilled Migration Visas (e.g. Subclass 189, 190, 491) must undergo a skills assessment to ensure their qualifications align with Australian standards. The assessing authority depends on the applicant’s occupation:
- Engineers – Assessed by Engineers Australia.
- IT Professionals – Assessed by the Australian Computer Society (ACS).
- Healthcare Workers – Assessed by the Australian Health Practitioner Regulation Agency (AHPRA).
For employer-sponsored visas (e.g. Subclass 482), the employer must prove no suitable local candidate is available before sponsoring a foreign worker.
English Language Proficiency
Most visas require proof of English proficiency through tests like:
- IELTS (International English Language Testing System).
- TOEFL (Test of English as a Foreign Language).
- PTE Academic (Pearson Test of English).
Minimum score requirements depend on the visa type. Skilled migration visas require Competent English (IELTS 6.0 in each band or equivalent), while certain employer-sponsored visas may require Higher English scores.
Health and Character Requirements
All expats must undergo a health examination by an approved medical provider. The government requires applicants to be free from serious infectious diseases (e.g., tuberculosis) and other conditions that could burden Australia’s healthcare system.
Expats must also provide police clearance certificates from every country they have lived in for over 12 months in the past 10 years. Applicants with criminal records or security risks may be denied entry.
Australia Financial Proof and Visa Fees
Some visas require expats to demonstrate financial stability, particularly student and retirement visas. Applicants may need to show bank statements proving they can cover tuition, living expenses, or business investments.
Australia Visa fees vary significantly:
- Skilled Work Visa (Subclass 189) – Starts at AUD 4,765 base, unless you are eligible New Zealand citizens.
- Employer-Sponsored Visa (Subclass 482) – Starts at AUD 3,115.
- Parent Visas (Subclass 143) – AUD 48,495 or more, which can be paid in two instalments.
Please consult the Department of Home Affairs website for the full list.
Meeting all eligibility requirements is crucial, as failure to provide accurate documents or meet health, character, and language criteria can result in visa rejection.
Permanent Residency (PR) and Citizenship in Australia
Many expats move to Australia intending to obtain Permanent Residency (PR), which allows them to live, work, and access public services indefinitely. PR can lead to Australian citizenship after meeting residency requirements.
How to Transition from a Work or Student Visa to PR
Several visa pathways lead to PR, with the most common being:
- Skilled Migration Visas (Subclass 189, 190, 491) – PR granted upon approval (189, 190) or after three years (491).
- Employer Nomination Scheme visa (Subclass 186) – It also allows you to stay in the country indefinitely, so it is a permanent visa, regardless of the streams.
- Graduate Visa (Subclass 485) → Skilled Visa – International students often use this route to gain local work experience before applying for a PR.
Expats who have lived in regional areas may qualify for regional PR pathways (Subclass 191), which grant PR after three years of living and working outside major cities under Skilled Work Regional (Provisional) visa (subclass 491) or Skilled Employer Sponsored Regional (provisional) visa (subclass 494).
How to Become an Australian Citizen
To apply for Australian citizenship, expats must:
- Hold PR for at least one year and have lived in Australia for a total of four years.
- Pass a citizenship test covering Australian history, government, and values.
- Demonstrate good character (no criminal history).
PR holders who become citizens gain additional benefits, including the right to:
- Vote in Australian elections.
- Apply for an Australian passport.
- Work in government and defense roles restricted to citizens.
How to Open a Bank Account in Australia
Australia has a well-developed banking system, and expats can open an Australian bank account remotely before arriving. Major banks include:
- Commonwealth Bank (CBA) – Largest bank, with branches in all cities.
- Westpac – Preferred by many expats due to its international services.
- ANZ (Australia and New Zealand Banking Group) – Strong digital banking features.
- National Australia Bank (NAB) – Offers fee-free accounts for new migrants.
Expats can open an account online and activate it upon arrival by verifying their passport, visa, and proof of address. Many accounts offer zero monthly fees for the first year for new arrivals.
Where do expats live in Australia?
Australia’s housing market is competitive, especially in major cities like Sydney and Melbourne, where high demand drives up prices.
Expats need to understand rental requirements, property purchase restrictions, and government regulations before securing accommodation.
Renting in Australia
Most expats rent before buying, as securing a mortgage in Australia requires visa eligibility and substantial deposits. Rental prices vary by city:
- Sydney & Melbourne – Most expensive, with one-bedroom apartments (city centre) costing AUD 600–800 per week.
- Brisbane & Perth – More affordable, with rents averaging AUD 450–550 per week.
- Adelaide & Hobart – Lower-cost alternatives, with rents around AUD 400–500 per week.
Rental Application Process
Australian landlords require proof of income, employment, and rental history. Expats should prepare:
- Passport and visa details.
- Proof of employment (contract or offer letter).
- Bank statements showing financial stability.
A rental bond (4–6 weeks’ rent) is required upfront, and leases typically last 6 to 12 months.
Buying Property as a Foreigner in Australia
Foreigners face strict regulations when purchasing property in Australia. Expats who are not Australian citizens or permanent residents must obtain Foreign Investment Review Board (FIRB) approval before buying.
Key rules for non-resident buyers:
- FIRB approval is required, with the relevant application fees.
- Non-residents can only buy new properties, off-the-plan apartments, or vacant land for development.
- Stamp duty surcharges apply in most states, typically 7–8% for foreign buyers.
Recently, the Australian government announced a ban on foreign home buyers, starting from 1 April 2025 lasting for 2 years, unless extended.
Mortgages for Expats in Australia
Expats can obtain home loans from Australian banks, but conditions are stricter for non-residents:
- Higher deposits (20–30%) are required for foreign buyers.
- Banks assess visa status and income stability before approving loans.
- Interest rates for non-residents may be higher than for Australian citizens.
Government Incentives for First-Time Buyers
Some expats who become permanent residents or citizens can access:
- First Home Owner Grant (FHOG) – A one-time grant for first-time buyers purchasing a new home.
- Stamp Duty Concessions – Lower fees for PR holders in certain states.
Expats should consider renting before purchasing due to market volatility, FIRB restrictions, and high initial costs. Careful financial planning is essential for those looking to invest in Australian real estate, so consulting an expat financial advisor is recommended.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
