LIVING AND WORKING IN MELBOURNE (Part 1)

1. Working in Australia: Visa Information

 

If you are not an Australian citizen, you need a valid Visa, or Electronic Travel Authority (ETA) to enter and spend time in Australia. With the exception of New Zealand citizens, all foreign nationals must obtain a Visa/ETA before travelling to Australia. Visas are available from offices such as Australian Embassies, High Commissions and Consulates. 

Working Holiday Visas

People aged between 18 and 30 years, from Belgium, Canada, Denmark, Estonia, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Republic of Korea, Malta, Netherlands, Norway, Sweden, Taiwan and the United Kingdom, can apply for a Standard Working Holiday Visa (Subclass 417).  This Visa allows you to stay in Australia for up to 12 months, work in Australia for up to 6 months with any one employer, or study or train in Australia for up to 4 months.

 

For more information on Working Holiday Visas or for other Visa Information, please visit the Department of Immigration and Multicultural Affairs  website.

 

 

2. Income Tax - What you Pay in Australia

 

The following tables detail the tax brackets of the Australian Tax System for the financial years ending 30 June 2006 and 30 June 2007.

 

The rate of tax within these brackets is called the marginal rate of tax. For Australian residents, the first tax bracket, from $0 to $6,000, has a zero marginal rate of tax. Tax is applied to every dollar after this figure. This tax-free amount is called the tax-free threshold.

 

For basic information on tax rates, fringe benefits tax - which affects employment benefits like company cars and business expenses - superannuation and family tax benefits visit the Australian Tax Office website.

 

                                                      Tax rates 2005 - 06

 

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $21,600	15c for each $1 over $6,000
$21,601 – $63,000	$2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000	$14,760 plus 42c for each $1 over $63,000
Over $95,000	$28,200 plus 47c for each $1 over $95,000

                                            Tax rates 2006 - 07

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $25,000	15c for each $1 over $6,000
$25,001 – $75,000	$2,850 plus 30c for each $1 over $25,000
$75,001 – $150,000	$17,850 plus 40c for each $1 over $75,000
Over $150,000	$47,850 plus 45c for each $1 over $150,000

If you will be paid a salary you can work out your weekly, fortnightly or monthly tax deductions in the tax calculation section of the website.

 

3. Health Care

                       

Australia's public health system

Medicare is the name given to the Australian public health system.

 

The Federal Government of Australia has signed Reciprocal Health Care Agreements (RHCAs) with several countries. If your country of origin has an RHCA with Australia this means you get access to free or low-cost doctors and hospital treatment in public hospitals while you are in Australia.  Reciprocal countries are Finland, Italy, Malta, Netherlands, New Zealand, Sweden, the United Kingdom and the Republic of Ireland.

 

When you become a permanent resident of Australia you have access to full Medicare benefits.

 

Medicine is not free in Australia. You have to pay the full amount for prescription medicines. You may be able to claim back some of the cost of medicine back against private insurance. You may also find some drugs are not permitted in Australia. If you rely on prescription drugs check with the manufacturer whether the drugs are available in Australia.

 

To help fund the scheme, resident taxpayers pay a Medicare levy. The amount of levy you pay is based on your taxable income and is in addition to your income tax. It isn’t reduced by any tax offsets you may be entitled to unless they are refundable tax offsets.  Normally, your Medicare levy is calculated at 1.5% of your taxable income but this rate may vary depending on your circumstances. Please refer to Australian Tax Office website.

 

Insurance

Business people who visit Australia from countries that don't have a RHCA, need to purchase travel insurance or will need to purchase private health insurance in Australia. Check that insurance covers all hospital, ambulance and doctors fees.

 

An excellent overview of the private health insurance market, with lists of insurance companies and explanations of types of cover, can be found at the Private Health Insurance Administration Council website.

 

The main Private Health Insurance companies are as follows:

• Medibank Private
• NIB Health Cover
• MBF
• HCF Health Insurance

Information for visitors & people preparing to come to Victoria

The Health Insurance Commission provides a Welcome Kit online that is full of information for people who have recently arrived in Australia or who intend to move to or visit Australia.

 

Find a hospital near you

The Victorian Department of Health website provides a search tool where you can find a public or private hospital in your area.

 

Emergencies

The Emergency (Ambulance, Fire and Police) Number in Australia is 000.

 

4. Buying and Renting Properties in Victoria

 

Real estate prices in Melbourne and in the rest of Victoria vary dramatically. Properties located in and around Melbourne typically cost far more than those in country areas around the State. Houses and apartments in Melbourne’s CBD and eastern-city areas, such as South Yarra or Hawthorn often fetch up to 10 times more than their counterparts in the northern suburbs, or those further away from the city.

 

Searching for a house in Victoria from overseas is a relatively simple task with the rise of residential real estate websites.

 

Most websites start with the premise that you know where you want to live. If you can't visit Victoria to find an ideal place to live, it is worth getting a guidebook to find out more about the area where you will live and work.

The major website for real estate, both to rent and buy are domain.com.au and realestate.com.au.

 

For a comprehensive listing of median and average residential property prices and rental costs by Melbourne suburb (inner, middle and outer ring) and for the rest of Victoria, refer to the Victoria Department of Housing's Quarterly Rent and Sales Reports.

 

Renting

Renting a house or apartment - is relatively simple using domain.com.au and realestate.com.au

 

Real estate agents usually ask for a rental bond as a form of security. The bond amount is usually one month's rent. The landlord or agent cannot ask for any amount higher than this, unless the weekly rent is more than $350 or the tenancy agreement states that you are renting the landlord's principal place of residence and the landlord intends to resume occupancy at the end of the tenancy.

 

The bond is lodged with the Residential Tenancies Bond Authority. For a guide to renting in Victoria, see the Consumer Affairs Victoria website.

  

Buying a house or apartment

Real estate continues to be a favoured investment for Australians. Around 68 per cent of Australians live in their own home and 43 per cent own their home outright.

 

Houses are sold in two ways in Victoria: by private treaty, where you negotiate with an agent or owner to buy a house that is for sale or, more commonly in Melbourne, by public auction.

 

When buying a house you will also need to consider:

·         Stamp duty - payable to the State Government

·         Mortgage duty - payable to the State Government

·         Council and water rates

·         Building and pest inspections

·         Survey report

·         Legal fees

 

You may also have to purchase additional insurances such as:

·         Home building insurance

·         Income protection insurance

·         Mortgage insurance.

 

You can search for a lawyer or conveyancer - solicitors who specialise in organising property purchases.

 

To find a real estate agent before arriving in Australia, go to the Real Estate Institute of Victoria (REIV) website. Agents listed on this site are REIV members who have passed strict criteria to gain membership.

 

 

Home loans

Loans are usually paid over 25 to 30 years, although most mortgages make provisions for clearing the debt sooner. Payments are usually made monthly or fortnightly.

 

Currently home loan basic variable interest rates average around 6.5 to 7.5 per cent.

 

Approval for home loans depends on how much money you have for the deposit - lenders ask you to have between five and 20 per cent of the value of the property, depending on the type of loan. Lenders also need to see proof of your income and your partner's income.

 

To calculate costs on mortgages, moving, investment properties and the like, go to yourmortgage.com.au.

 

 

Continued in next article…