Australia Money

Living costs and budgeting

Many international students begin independent living for the first time in their host countries. This can be stressful as they begin to realise how they are required to juggle multiple things including their studies as well as paying the rent, electricity bills and food. However, self-discipline along with planning and research can help stop you from feeling overwhelmed during your stay.

International student visa holders can work up to 20 hours a week whilst studying. It can be difficult finding part-time work and even more so full-time work. If you manage to find part-time work, you should not expect to live off this income completely.
 

Research before arrival

It is strongly advised to research thoroughly before arriving in Australia since most fees and costs vary from state to state and city to city.

Accommodation costs will be one of the most significant financial burdens. We advise you to research all available accommodation options (e.g. house or on-campus dorm), considering each of their locations with regard to your studying institution. Research the prices well since many factors will effect the prices, such as location, utilities, amenities and other living arrangements. Miscellaneous costs such as phone plans, transportation costs, food and stationery costs should also be taken into consideration.

The Australian Competition and Consumer Commission (ACCC) protects consumers by monitoring the costs of goods and services. A GST (Goods and Services Tax) is added to most goods and services in Australia. This 10 percent charge is included automatically in all purchases, but it excludes fresh fruits and vegetables, meat, bread and dairy products. However, costs for goods do vary depending on the store, so comparing prices between stores for big items such as TVs or computers may save you a few bucks.

Here is a short list you can use to roughly determine what you can expect to pay for general items in Australia (Prices are in Australian dollars):
 Loaf of bread $3.50 Café sandwich $6.50 Big Mac $3.95 CD $25
Music download (iTunes) $1.99  Milk (1L) $1.60 Large take-away coffee $3.50 Bag of basic groceries $30 Rice (1kg) $1.60
Movie ticket $10+ Gym memberships $10–40 a week DVD rentals (new release) $7.00 overnight  Clubs, pubs, nightclubs $15+  Professional sporting events $30+ Can of Coke $2.20

Have a budget

To avoid financial stress, it is advisable to create and stick to a budget. Here are some tips to help you achieve this:

• Identify essential payments (e.g. rent and phone bills) and arrange for direct debit. Direct debit is the automatic payment option which takes away the stress of paying in person and paying on time. This is important because late payments may result in unnecessary surcharges or fines.
• Withdraw a certain amount of cash (e.g. $120) every week and spend no more than this each week on things such as food, transport and entertainment.
Be aware of your account balance at all times.
Identify your needs and wants and avoid using credit cards unless for emergencies. New fancy shoes or mobile phones that you want but don't need are not emergencies.
Use a debit card for online purchases. This offers you more protection online and you don't need to pay interest like you would a credit card.
Minimise additional bank fees by minimising the use of EFTPOS, minimising withdrawals as well as using only your banks' ATMs.
Live economically. This can be achieve by purchasing good condition second-hand goods at places such as the Salvation Army or weekend markets.
Look for street press magazines in places like music stores, cinemas and student refectories. These magazines usually have details on cheap or free activities to do in your area and more.

Banking and insurance

There are many banks and credit unions to choose from. To compare and choose a bank suitable for you, visit www.infochoice.com.au .

Withdrawals are available 24 hours a day from ATMs. Most stores and supermarkets also have EFTPOS available where cash withdrawals are possible and payments are made directly from your bank account.

 Once you've chosen a suitable bank, opening an account should be easy. Be sure to prepare all ID and documents requested by your chosen bank. A passport should be enough but sometimes your birth certificate or a document indicating your residential address may also be requested.

As an international student, you will need to present your student visa and you may also need to present your school ID and a letter from your school principal if you are under the age of 18. Furthermore, advising your bank of your Tax File Number will also help you avoid higher tax rates on the interest you earn.

Credit cards

MasterCard, Visa, Bankcard, American Express and their affiliates are usually accepted across Australia. It is not necessary to carry large amounts of cash since most businesses accept credit cards as payment.

Transferring funds

Transferring money to Australia can be done through bank drafts, cheques or telegraphic transfer. Bank drafts can take up to 10 working days to clear while cheques take around 5 and telegraphic transfers usually takes shorter time, but it costs more.  Tipping Tipping is optional for all services (including taxis) in Australia. However, You can tip up to 10 percent for good service if you wish.

Insurance

Overseas Student Health Cover (OSHC) should be automatically issued to all international students. However, you may invest in other types of insurance for maximum protection. You might consider travel insurance, contents insurance or third party car insurance if you own a vehicle.