Sorry, cost of living again

[australian]

Hi

I know that there is plenty on the forum on cost of living, but I was hoping that someone could just give me a yes or no as to wether we would be able to survive on the following.

My husband has had an offer of $65 000 pa, with company car and petrol. Based on everyone's experience, do you think we could survive on this, taking into consideration the following:

1) Renting in the Hills, Sydney for ± $400 per week

2) I will be staying at home but qualify for ± $332.00 family tax benefit every two weeks (I am a Citizen)

3) three children, 1 at public school (so no school fees), a 3 year old (probably school half day) and baby

4) transport costs low, as my husband will have a car and petrol, we will just buy a small second hand car and pay cash

5) all other general expenses, obviously we will not spend too much on entertainment ect

My main concern is that we arrive in a new country, and end up on the streets as we can't afford to live day to day. We will have a small amount of money that we will bring from SA, but this will be for emergencies!!

[Marius]

Many Saffers arrive here with similar salaries. Sydney is however an expensive city to live in, however many make it with a starting salary of where your husband will be earning, the tax benifit might help. I dont think public schools are free though, they certainly are not in South Australia where I live nor is it in other states to my knowledge. It might be several hundred per year, I am not sure about Sydney's cost structures.Pre school or "kindy"is fairly expensive I believe, not sure the cost though as I have secondary school kids.

In terms of living, i think you can with that money, especially with no car of fuel expenses, but honestly you might have to start a bit modest, but it is by no means impossible I think. I think you might want to re-think the $ 400 rent in the beginning, but you might see it different.Hope that help a bit.

Maybe someone from Sydney can give more detials ?

[Ajay]

Hi australian,

The short answer is yes, you are able to live on that salary, so if you are serious about being here, grab the opportunity with both hands.

Love

Ajay

[MANDYL]

I was under the impression that all public schools if you are a permanent resident are for free. My husband might be getting a job in Wyalla and I have a daugter at school. We have applied for the 136 visa (lodged in September 2006) and is it not if you are a permanent resident on this visa, public school and medical are for free ?

[australian]

Thanks so much for all your advice

I have been told that all we will have to pay for my daughter is ± $200 per year, depending on which school. Obviously a big cost will be school uniform, stationery and school outings. Most of this we would have budgeted on with the money we bring from SA.

[Marius]

Australian,

Like Ajay says, grab the chance with both hands, you will make it, no worries. The short term sacrafice and stress is well worth the big reward. Freedom,safety,future etc etc.

[australian]

Australian,

Like Ajay says, grab the chance with both hands, you will make it, no worries. The short term sacrafice and stress is well worth the big reward. Freedom,safety,future etc etc.

Thanks Marius/Ajay

We have just paid the visa fees for my husband.....so for us there is no turning back now!!

I am hoping to find something to rent under $400, but there doesn't seem to be much especially on the North Shore and in the Hills District.....I have been keeping an eye on property rentals since last year, hopefully we will be lucky and something cheaper will come up.

Thanks again for your advise, its so nice to hear so much positive feedback!!

[Swerwer]

Hi Australian

Is this now $65000 AFTER tax and superannuation is deducted or BEFORE it is deducted since it makes a difference. Have a look at this site that calculates what you get out after tax and 9% compulsory superannuation.

Details (per annum) - If Super is included in your $65k salary package

Gross Income: $65,000.00

Superannuation: -$5,366.97

Taxable Income: $59,633.03

Tax: -$13,239.91

Net Income: $46,393.12

Details (per annum)

Gross Income: $96,011.00

Superannuation: -$7,927.51

Taxable Income: $88,083.49

Tax: -$23,083.39

Net Income: $65,000.10

Details (per annum) Difference

Gross Income: $31,011.00

Superannuation: $2,560.54

Taxable Income: $28,450.46

Tax: $9,843.48

Net Income: $18,606.98

If you get $65000 before tax per annum, that will give you about $46393 net income (after tax+super) per annum, which equals to $3866 per month.

You therefore have to get $96011 before tax per anum in order to earn $65000 net income (after tax+super) per annum, which equals $5417 per month.

There is therefore a difference of $18609 between the BEFORE and AFTER case: $1551 less per month in your pocket

[Pippa]

Hi All,

Australian, congratulations on the offer!

Swerwer, thank you for the superb explanation . I never look at tax and things… Australian, just make sure whether you are paying perks tax on the fuel and company car . I pay a significant amount of perks tax on my company car and if I were you, I would investigate this.

Good luck .

Bye, Pippa! X

[Swerwer]

Here is an example of what we think a realistic budget is for Sydney

$90000 (when you have to pay $750 per month = 2x$4500 school fees for 2 children, are not on medicare and rent a house for $450 per week).

$65000 (when school fees are free, you are on medicare and you rent a house for $350 per week)

Example_Sydney_Budget.xls

[Ajay]

Hi again Australian,

I see that everyone is going into much more detail than a simple yes or no, so maybe I should add to my answer as well

When we arrived in Sydney, we were a single income family, earning exactly $65K - no car / petrol (but including super - good point to check, thanks Swerver), with two kids, living in the Hills. Provided that you are familair with the old tightening the belt thing, you will be able to survive. We had the tax benefit of LAFHA initially which helped, but we were still OK. We were able to buy a car cash with our Rand savings which helped as well. However, on a month to month basis, if you are sensible and take advantage of the numerous free/cheap entertainment pursuits, then you really should be OK. Looking at Swerver's budget examples, the areas where you could definitely save are public transport (with a company car and another small family car, this wouldn't be a consideration) and also in the petrol cost (for the same reason). That in itself saves $350 per month. Then you can buy a cell phone package of $49 per month, which gives $230 credit, easily chop groceries to closer to $800, and still be in a house costing $450 per week and have around $700-$800 per month 'disposable' income. Be strict, be sensible and I maintain that $65K is easily liveable.

Love

Ajay

[australian]

Thanks so much for all your feedback!!

The $65 000 was before tax, not sure about superannuation...will have to look into that.

This really has been so helpful!! especially the spreadsheet...thanks Swerwer.

We are trying to make a difficult decision at the moment....whether to have another baby as soon as we arrive in Australia (my youngest is nearly 3, and we don't want to big an age gap) and for me to stay at home with the kids for the first 1 or so (think it will also help my other two)

or for me to also work and have the extra income. I have just spent the last 5 year studying and have just qualified and been accepted as a Member of Chartered Secretaries Australia. There does seem to be plenty job opportunities in Sydney, and I have registered to study Corporate law, which I will be studying long distance from SA and writing in March 2008!!! ......

[Swerwer]

Superannuation is mandatory for all workers and is deducted from the gross income before tax is deducted. Tax is also mandatory.. ..hehe, and deducted after that....you cannot even get interest on money in your bank before you are registered for tax. But I do believe when one is still on temp VISA the tax is less...can somebody tell us how much?

[Ajay]

Hi,

REgarding tax - I'm afraid Temp Visa holders pay exactly the same as PR's. In fact, there is a seperate tax table for Non-REsidents where the tax is signifcantly higher, but under the explanation offered by ATO, most people that are working / living in Australia for extended periods are classed as residents for tax purposes. Have a look at the ATO website (www.ato.gov.au) for a more in-depth explanation.

What you might be thinking of, Swerver, is the Living Away From Home Allowance that some companies are willing to package into the salary for non PR's. This is a tax free allowance paid to Temporary REsidents that are required to live away from their usual place of residence for the purpose of fulfilling a work contract, and because it lessens your taxable income, it increases your nett. Kind of like a car allowance in SA in the days before the tax man spotted that loophole

Cheers

Ajay

[celeste]

Hi

I have heard from agents that when one gets a visa that grants PR one automatically is covered for medical and enjoys the benefit of free state schooling?

What are the state schools like? ie. compared to sa standards and is it correct that fees are free (we're heading to the gold coast or brisbane) and that one gets free medical cover in state hospitals? Also, what are the standards like in state hospitals compared to what we enjoy here in SA in private hospitals (we all know standards here are slipping of course).

Really appreciate your feedback.

Thanks guys

P.S a doff question...how does one activate the emoticons in the text body?? (I'm techno challenged!!)

[Ray51]

Here is an example of what we think a realistic budget is for Sydney

$90000 (when you have to pay $750 per month = 2x$4500 school fees for 2 children, are not on medicare and rent a house for $450 per week).

$65000 (when school fees are free, you are on medicare and you rent a house for $350 per week)

Example_Sydney_Budget.xls

[/quote

Hey , thanxxxx a lot for the splendid spread-sheet effort , I'm sure many on this Forum are very appreciative of this contribution !

From own experience , might I prompt you to add a few additional calculated book entries , mostly : in the debit column , e.g.

( in no particular order , nor merit !)

- car servicing , tyres , possible excess on claims ( considering the mileages likely to be involved ) ;

- any entertainment , for adults and children ;

- clothes etc. , school/work/casual/formal , for children , and parents ;

- TV - subs , I'm otherwise told : could easily be $100+/a month ? ;

- Occasional Eat-Out ;

- Own share of prescribed or over-counter medicines' costs/ Dentists/Opthalmologists/other practitioners ;

- a little towards :

Arts/Culture/ ... ? Charities ? Self-Improvements ? Celebrations ? Good Times ?;

- Insects : Repellents and treatments ;

- Holidays , Oz ;

- Holidays , abroad ;

- saving towards a ( very expensive ) purchase of own home ?;

- any other investments ?;

- press / hobbies ;

- car depreciation/replacement cost ....

I stop here , surely others would think of specific other expenditure/s , to be factored into the CoL formulae ?

Keep up the Good Work , hoor ?.........& alles v.d.Beste , from The Capital of Europe !!!

[Karen96]

Hi there,

any idea how is the cost of living in Perth.

I understand it's the 3rd or 4th most expensive city after Sydney and Melbourne.

How much money should a family of say 4 persons (children 12 + 9) earn to maintain an acceptable standard of living

Karen

[Enrica]

Hi there,

any idea how is the cost of living in Perth.

I understand it's the 3rd or 4th most expensive city after Sydney and Melbourne.

How much money should a family of say 4 persons (children 12 + 9) earn to maintain an acceptable standard of living

Karen

Karen

Once again it depends on a few variables:-

a) Private or State Schools?

How much you are going to rent for?

c) Are you going to pay your car off?

d) Do you eat out a lot?

On average a Perth budget is between $3500.00 and $5000.00 per month

We are a family of 4- groceries cost us an average of $200.00 per week

I pay private school fees , and I dont rent but the average rent in Perth depending on where you stay is

$330.00 for a decent place close to the beach and city.

Hope that helps

[Karen96]

Karen

Once again it depends on a few variables:-

a) Private or State Schools?

How much you are going to rent for?

c) Are you going to pay your car off?

d) Do you eat out a lot?

On average a Perth budget is between $3500.00 and $5000.00 per month

We are a family of 4- groceries cost us an average of $200.00 per week

I pay private school fees , and I dont rent but the average rent in Perth depending on where you stay is

$330.00 for a decent place close to the beach and city.

Hope that helps

Hello Enrica

We will be going for State Schools in Perth suburbs or Mandurah. In terms of rent, do you think $.250 would be OK for a small house or unit provided we get the basics to start with as we don't need to be close to the beach..

Yes we will need to buy a family car at least - No big expenses here again...

So if i get you right; we should be Ok with a weekly family pay of say $.1,000

[Enrica]

Hi Karen,

Yes. Karen you will be Okay then.

If I can assist with other info let me know

Good Luck

[Neel & Jo]

Thanks Marius/Ajay

We have just paid the visa fees for my husband.....so for us there is no turning back now!!

I am hoping to find something to rent under $400, but there doesn't seem to be much especially on the North Shore and in the Hills District.....I have been keeping an eye on property rentals since last year, hopefully we will be lucky and something cheaper will come up.

Thanks again for your advise, its so nice to hear so much positive feedback!!

Hi

I was reading the calculation for salaries after tax, THANK YOU

We were so worried about how the standard of living would be, and with that calculation,

now have such a good idea.

Brilliant Forum

cheers

Neel / Joanne

[DesV]

Firstly yes you will survive on $65 000 pa

secondly I have had a number of jobs in australia, lived here for over 6 years and have never heard of Superannuation being deducted, while it is compulsory for the company to pay it unless they specifically tell you your salary is before super it is highly unlikely they will deduct it from you.