Australia:The Price of Adventure
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Australia:The Price of Adventure
By Michael A. Kozlowski
There are a myriad of things to consider when weighing the opportunity to move to another country, not least how easily can you return if things don’t work out? How will this move affect your family, those that are going with you. Will this experience be beneficial to your career? These are all questions to ponder, but perhaps the greatest deciding factor is a financial one. What is all of this going to cost?

When my family and I decided to undertake a move to Australia we found that, while we thought we had researched the costs pretty effectively, we were woefully unprepared. Let’s assume you have decided to move to the great “Down Under” or are at least seriously contemplating the matter.

What should you do first?

We’ll hope that you have negotiated a reasonable sum for moving expenses. This can be a very expensive process and, as we  move along, I will get into the particulars. For the moment, suffice it to say that when my wife, Laurie, and I packed up our two young sons, in early  2004, the total bill came to something like  $25,000 USD.  My original contract had called for $20,000  Australian dollars  (A$)  to be allocated for moving expenses (roughly $15,000 USD). This was changed to cover  “all reasonable expenses”.  However, if you and your employer have not discussed what would be included in that broad phrase, a set sum might be wiser. 

I ran into a situation where some of the monies I was looking to have reimbursed became a source of debate. Just a few of the major items to consider are a reconnaissance  visit, the cost of moving your household goods to the other side of the globe, accommodations and a rental vehicle while you get settled, plane tickets, and the basic necessities you will require while you wait for your goods to arrive (which will invariably take at least a month longer than you will be told by the moving company).  Our first move was a checking it out visit - this was particularly  important to keep my wife interested in the idea.

When I first approached Laurie about the subject her initial reaction was something along the lines of “I don’t think so” but with a lot more expletives.  She pictured us living in a grass hut, in the middle of nowhere, fending off hostile natives and hungry dingoes.

Where would she be able to get craft supplies?  What would we be eating? Needless to say, my wife doesn’t get out a lot. Apparently, she was basing her opinion of Australia on a few Discovery Channel documentaries.

We were put in touch with a lovely lady by the name of Tracey Miller, to help us relocate. Tracey was invaluable as an agent and I would recommend her services without a moment’s hesitation. Miller Property Consulting is located in Lake Munmorah, New South Wales.

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This is about an hour and a half north of Sydney in an area known as the Central Coast.  I am reasonably sure that Tracey would be willing to assist anyone in the greater Sydney area, but as it happened, we were relocating to the Central Coast, so things were just hunky dory with that. I would definitely say that a relocation agent is a must. Tracey’s fee was fairly modest (especially for all that she did), A$1425. 

We scheduled a visit to Australia for April and forwarded our itinerary to Tracey.  It would be just the wife and I on this visit. ane tickets were roughly $1300 each, roundtrip from Detroit. When you place the order for your tickets the airline should ensure that you have the proper Visa to enter Australia. This is free of charge for a Visitors Visa, and you won’t get into the country without it. It takes the ticket agent about two minutes to process it and there is nothing for you to put in your passport or show to immigration officials.  It will be in “the system” and available for the Australian agent to pull it up on computer.

We opted for a very nice hotel, Hilton on the Park, in Sydney and arranged for a rental car to be available at the airport.

Excluding meals, souvenirs, and standard tourists costs (museums, shows, etc) the trip, all up, was about $4500 USD. So far that brings us to a grand total of about $5600 USD (including Tracey’s fee).

In our case, we were already 90% sure that we were relocating, so we weren’t too worried about seeing the sights.  We knew we would have some time to do that once we moved and then we could share it with the boys.

We planned to spend a few days seeing Sydney and a few days exploring the Central Coast and checking out houses. We also wanted to wander through some of the department and grocery stores, to do some price comparisons. We needed to get a feel for the money we would be spending on basic items, like groceries, and also what kind of money we would need to set up house.

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Australia runs on 240 volts and 50 hertz, as opposed to the U.S., which runs 110 volts and 60 hertz. Essentially, this means all appliances, lamps, audio/video equipment and pretty much anything else you can plug in, will be absolutely useless to you if you bring it from America, or you will have to invest in expensive converters.Some of the small stuff will work with a basic adapter but you never know. In fact, some items can be down right dangerous. Unless a particular item states that it runs at 50 or 60 hertz (as some do), you’re best off just leaving it at home. Laurie had an interesting moment in the hotel when she tried to use her hair straightener. It started out okay, but as it warmed up we began to notice an unusual smell followed by some very alarming crackling noises.  She opted to unplug it and throw her hair in a ponytail for the remainder of the trip, rather than risk burning down a five star establishment.

Due to the fact that our electrical goods were useless in Australia, we would be required to purchase phones, a microwave, a washer, dryer and a refrigerator. A great number of people don’t use dryers, due to the temperate climate, and hang their clothes to dry, instead. Laurie was having none of that. The appliances would set us back about $1300 USD. That brought our tally to $6900.

We were fortunate enough to actually secure a home during our reconnaissance visit.  It only took about 14 viewings and two days of negotiations. The house we had organized to rent was going to cost us A$350.00 per week (almost all rents are paid weekly, rather than monthly). This is toward the higher end of the scale. For one, Sydney is the most expensive area to live in the country, with Melbourne a close second.  enerally speaking, I would say you could expect to get a pretty nice place for between $200 and $300 per week, depending on the room you need. Our house had four bedrooms (one to use as a spare for guests) and an in-ground saltwater pool. All up, there were three bathrooms.  If you were to sell the house, it would go for about A$450,000. This is pretty dear for a middle class suburb, but probably not as much as you would expect to pay for something in a similar neighborhood in California. Of course, coming from Michigan, you might expect the home to go for $250,000USD. Our initial trip was pretty successful - we had accomplished everything we wanted to and more.  Now we had to head back to the U.S. and prepare for the move.

Procuring a moving company can be a bit of a pain. I found a list of International movers on the web, and picked half a dozen to get quotes from.  Besides telling them where you are moving from and to, they will also request a list of the items you are moving.  This will help determine the size and/or number of containers you need. Basically, you can get a 20 foot or 40 foot container. The price difference isn’t very much, so if you are close on the 20-footer, I would suggest the 40.The more complete the list you give them, the more accurate the quote. It’s best to have a representative come out and do an assessment of the goods you are taking and it’s wise to make sure that general packing material is included in your quote. You will also get charged based on how many flights of stairs the movers have to traverse, how many special boxes they use (for packing mirrors and the like) and how far they have to park the truck from your front door. You can save a fair amount by doing most the packing yourself, but even if they tell you that the packing materials are included, you can expect a few miscellaneous charges.

You also have to pay to insure your goods. This covers everything in case of damage or loss, but if you are going to make a claim, you only have about a week to do it, once you take delivery of your goods at your destination. Your insurance cost is based on a percentage (3-4%) of what you say your stuff is worth. I suggest that you claim an amount that will allow you to replace your major items, in case the boat sinks, and leave it at that. Otherwise, you pay way too much. You also pay a higher rate for things that you pack yourself, unless the movers sign off that they have checked it all.  You have to make special note of items made of wood and if you are shipping yard equipment, you must give it a thorough cleaning to remove all soil. Australiahas some of the strictest importation laws around. This is a country that is serious about keeping bad things out, like rabies and foreign pests, parasites and skinny Americans with Polish last names. If you bring a pet with you, it will be subject to six months quarantine.  We received a wide range of quotes for the move and settled somewhere in the middle. All up, the cost was about $8,000USD.

I would also suggest that you schedule removal as early as possible. It is far easier to borrow something you’ve accidentally packed, from a friend, while you are still in your comfort zone, than it is when you have just plopped your butt on the other side of the globe, where you hardly know a soul.  Also, you will be told that it takes about two months to get things door to door. Ours took three months.

Most companies will offer a month of free storage, as well, so if your stuff gets there a little before you do it’s not a big deal. It is very inconvenient to move into a house with nothing but a few suitcases and to be waiting for the rest of your stuff, believe me. For the first month in Australia, we had half a dozen changes of clothes each. We bought two futons when we arrived to sleep on (and sheets, blankets and pillows).  The television we purchased was sitting on the floor, and we were eating off of paper plates (on a table we borrowed from a neighbor) with plastic utensils and cups. I can’t emphasize enough that you should ship your stuff earlier than you think you need to (and a week earlier than that, for good measure).

Now that I have given you all that information about moving your stuff, I suggest you don’t do it unless you are planning a lengthy stay.  By lengthy, I mean a few years or more. Ou would be much better off to either sell your things or put them in storage and negotiate a sum with your employer to set up house. Most employers would likely be happy to offer an amount equivalent to what the cost of shipping the goods would be. So far our total cost for getting set up in Australia had reached $14,900.

About this time, we were finalizing our papers to apply for our Visas, so that we would be allowed to stay in the country for longer than 3 months. These are different from the Visitor Visas that I mentioned earlier.  There are a number of different Visa sub-classes, and depending on your situation, you will be informed which one to apply for. For instance there is the Business Visa 457, which allows you to work and live in Australia, for up to four years, and to pay taxes, but you are classified as a temporary resident.  As such, you are not covered by Medicare (Australia has a social medical coverage, like Canada), your children can’t attend school unless you fork over a hefty fee ($4000 per year) and you aren’t entitled to certain tax benefits.  There is also the RSMS Visa 857, which classifies you as a permanent resident, with all the benefits of a citizen.  This Visa is good for five years and allows you to apply for citizenship after two years in the country, 12 months of which has to fall within the previous two years of the time you apply.  A requirement of this visa is for you to be sponsored by a company, and for that company to show that they have a need for you due to a lack of people in the area, that can fulfill your job.

There are various other visas that you can apply for based on your skills and/or reasons for moving to Australia. Many require that you also prove your qualifications to a division of Government known as Trades Recognition Australia (this applies to the 857, also).  The costs may vary a bit from visa to visa, but for us (applying for the 857) the total was A$2375 (About $1850 USD).  This included the TRA fee for trade recognition.  In any case, you have to go through piles of paperwork to get your visa approved.  The process was so long, that we actually migrated on the 457 Visa (which was easier to secure) and transferred to the 857 after we were in Australia (which meant re-submitting all the same stuff, so keep your originals).  It took us 6 months to get on the right Visa. In the meantime we had to make sure that the company was willing to pay for private medical coverage and the boy’s school fees. You, and all of your family travelling with you, will have to send certified copies of birth certificates, marriage license, each page of your passports, chest x-rays (for everyone over 16), medical exams, contract of employment, FBI clearances, copies of your resume, letters from previous employers, and who knows what else that I can’t recall at the moment.

Getting all of these documents together is no easy task. There are doctor appointments to make, fingerprinting necessary, fees for notarizing, the cost of running off copies of all this crap and a ton of postage.  Conservatively, I would estimate another $500 to get it all done. So now we have reached a total cost of $17,250.

Finally, you can add in another batch of plane tickets (for our foursome that came to, roughly, another $4000) and a rental car for your first week or two in your new homeland while you are organizing your own vehicles.  I’d figure another $1000 for that.

In total, just to get ready to start living in Australia you can expect to spend in excess of $22,000.  It is quite a financial burden to consider and you should recognize that most of these costs will be similar if you decide to move back.  We haven’t even discussed the general cost of living.  Moving to another country is certainly an expensive proposition.  For me, the experience was worth it, but it is definitely something you need to factor in to your overall decision making process.

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