Cost of living in Australia

Students moving to Australia will have to take expenses like rent, utilities, telephone and food into consideration when organizing a budget.

The conditions of the international student visa states that students are permitted to work up to 20 hours per week during study periods. Part time work can be difficult to find, and the money earned may not be sufficient enough to live week by week. Do not depend on your wages from a part time pr casual job to get you by. You need a large reserve of cash you can spend, or have a steady income from another source to live from (e.g. parents, friends, royalties etc.).


Do your homework before you arrive

Your main financial burdens to consider are accommodation fees, tuition fees and food. It is suggested that you do research on the accommodation options available. Investigate the prices and the locations of the properties that are available for rent.

Usually it is a good idea to find accommodation close to your institution, but sometimes you can find a place more suitable to your needs. Also investigate the conditions of the accommodation, such as whether the accommodation would cover meals in a boarding school, or if you have to share a bathroom etc.

Also investigate the cost of expenses, such as food, utilities (gas, electricity, water), telephone, public transport, courier fees, furniture, educational expenses (books, USB drives, stationary, uniforms), clothes, etc. the cost of all these expenses and items depend on what areas that you decide to study in.

Also there are many other expenses you will have to encounter, like car parking, travel expenses etc. Also items like cooking utensils, clothes, USB drives, stationary, books, folders etc.

A Goods and Services Tax (or GST) of 10% is added to all goods and services in Australia. The GST is usually included in the ticket price of such items.

If you feel that you have been unfairly charged for an item or service, then you can get in contact with the Australian Competition and Consumer Commission (ACCC). The cost of goods and services are monitored by the ACCC. Prices of items and services vary from store to store, and it is a good idea that you shop around before you buy.


Put yourself on a budget

The best way to prevent you from financial ruin is to follow a strict budget. Here are some tips that you might want to take into consideration.

• Identify what your weekly bills are, and set up automatic payment from your bank account on that due date, called direct debit. Payments can be made weekly without you needing to pay the bills in person. You will never get in trouble for late fees.
• If you don’t set up payments as a direct debit, and you do not pay your bills or rent on time, you may have to pay a late fee
• Organize a budget and withdraw only that amount for that week. For example, withdraw $120 for food, public transport, and entertainment. If you decide you would like to buy something you need, like a shirt, you can use the Electronic Funds Transfer at Point of Sale (EFTPOS) system to pay for goods and services.
• Always be aware of how much money you have in your bank account.
• Don’t apply for a credit card. Interest on such cards can vary from 5.99% to 24.99%. If you do have a credit card, only use it for emergencies.
• If you buy things online, remember to use a debit card or BPay. A debit card is like a credit card but uses money you already have. BPay is much safer and is connected to your savings account.
• You can minimize bank fees by dealing with only one bank. Fees such as EFTPOS, ATMs, and withdrawal fees can be reduced.
• Live economically, and try to cut the cost of expenses and goods. Home brand foods are a cheaper alternative. Second-hand items can be purchased from the Salvation Army, pawn shops, markets and friends.
• Information on local entertainment events can be found in free street press magazines. You can find them in such stores as music stores, cinemas, and student refectories. You can find information upcoming free or cheap events, such as concerts, art exhibitions, sporting activities, festivals and nightclubs.

Banking and insurance

Now you have arrived in Australia, you will need to open a bank account to take care of your finances. There are dozens of banks and financial institutions to choose from, all with varying interest rates and charges. Normal bank trading hours are between 9:30am to 4:00pm Monday to Thursday and between 9:30am and 5:00pm on Fridays. Some banks are also open on Saturday mornings, but all are closed on Sunday and public holidays. ATM’s are available for withdrawal 24 hours a day. Most stores and supermarkets have EFTPOS terminals where you can pay for goods and services directly from your bank account, and even make cash withdrawals.

Now that you have decided what bank to join, you need to open a bank account. There is a choice of what type of account to open. The most common is the savings account. Documentation and identification is required from the bank to open the account. Each type of bank will have different policies on how much identification you need to open an account. Generally your passport will be sufficient for the first six weeks. At a later date, you may need to show a birth certificate, driver’s license or some other type of identification (even your tenancy agreement). As an international student, you will also have to show your student visa. If you are under the age of 18 years, a letter from your principal and school Identification may be required.

Your tax file number is also needed when you open a bank account.. This will help avoid higher tax rates on interest you earned.


Credit cards

The most widely accepted credit cards are MasterCard, Visa, Bankcard and American Express. Most businesses accept credit cards as payment. This will prevent you from carrying large amounts of cash around with you.


Transferring funds

Money from overseas financial institutions can be transferred by bank drafts, cheques or telegraphic transfer. Bank drafts take about 10 working days to process. Telegraphic transfer is faster, but costs more. Cheques take about 5 working days to process.


Insurance

As an international student you will already have OSHC insurance, but you might want to investigate other types of additional insurance policies.

Travel insurance covers travel costs such as if your airline cancels your flight, loses your luggage, or physical damage if you are injured on your trip.

Contents insurance will cover your items stored in your home, such as furniture, television, and jewellery.

Third party car insurance is mandatory if you own a car or motorbike. Third party insurance covers the damage that is done to other cars or property as the result of a motor vehicle accident. Fire and theft provides third party insurance cover, fire, and theft. Comprehensive insurance covers damage to your car as well as third party insurance cover.