🛂 The Points Game
Most skilled migration to Australia runs through three visas: Subclass 189 (Skilled Independent — full permanent residency, no sponsorship needed, but now the most selective of the three), Subclass 190 (Skilled Nominated — a state or territory nominates you for an extra 5 points, in exchange for a roughly two-year commitment to live there), and Subclass 491 (Skilled Work Regional — a provisional visa carrying a 15-point regional bonus, converting to permanent residency after three years). The official minimum is 65 points, but in practice most 2026 invitations go to applicants scoring 85 to 100+. A major points-test overhaul is under government review for the 2026-27 budget cycle — expected direction is more weight toward younger applicants and English proficiency — but nothing is legislated yet, so treat any specific new numbers you read as provisional until confirmed by the Department of Home Affairs.
💰 The Superannuation Trap
This is the single most important tax fact for an American moving to Australia. Canada's RRSP is explicitly protected from annual US taxation under the US-Canada treaty — Australian superannuation gets no such protection. The US-Australia tax treaty (1982, updated 2001) simply doesn't address it, so the IRS has never formally recognised super as a qualified pension. The practical result: your employer's compulsory 12% superannuation contribution may be treated as taxable US income the year it's paid in, fund earnings can trigger annual reporting, and the account itself generally needs disclosure on both FBAR (FinCEN Form 114, over $10,000 aggregate foreign accounts) and FATCA Form 8938. Most standard industry super funds now qualify for relief from the more burdensome Form 3520/3520-A filing under a 2020 IRS revenue procedure — but this is genuinely one of the most complex corners of US expat tax, and it's worth a specialist consultation before you accept your first Australian paycheck, not after.
🏥 Healthcare and Medicare
Once your permanent residency is granted, you can enrol in Medicare, Australia's public healthcare system, essentially immediately — there's no waiting period for confirmed PRs, which surprises many people expecting a delay similar to Canada's provincial systems. Medicare covers doctor visits and hospital treatment but leaves real gaps: dental, vision and ambulance transport generally aren't included, which is why most residents carry supplementary private health insurance on top. Bulk-billing (fully covered GP visits with no out-of-pocket gap) is becoming harder to find in Sydney and Melbourne specifically, so budget for a partial gap payment on routine doctor visits even with a Medicare card in hand.
🏠 Cost of Living, City by City
| City | 1-Bed Rent (Monthly) | Character |
|---|---|---|
| Sydney | AU$2,200 – 3,000 | Most expensive; harbour views, tightest budgets |
| Melbourne | AU$1,800 – 2,500 | Laneways, coffee, closest rival to Sydney |
| Brisbane | AU$1,600 – 2,200 | Warmer, more affordable, fast-growing |
| Perth | AU$1,500 – 2,000 | Isolated but mining-money prosperous |
| Adelaide | AU$1,300 – 1,800 | Best value among the state capitals |
On the national average full-time salary of roughly AU$87,000, a single person nets around AU$4,900–5,100 a month after tax — comfortable in Adelaide or Brisbane, break-even tight in Sydney without a housemate.
✅ First Five Things
1. Tax File Number (TFN) — apply the moment you land; without it, employers must withhold tax at the top marginal rate. 2. Bank account — the major banks (CBA, Westpac, NAB, ANZ) all offer straightforward new-arrival accounts, often openable before you even land. 3. Medicare enrolment — as soon as your PR is confirmed. 4. Choose a super fund — your employer will default you into one if you don't choose, and it's worth comparing fees before that happens. 5. SIM and address — a local number makes everything else, from rental applications to bank verification, considerably faster.
✍️ The Kaufmann Bottom Line
Australia is genuinely one of the easier developed countries to build a life in — English-speaking, stable, high quality of life — but the superannuation-tax intersection catches out more American arrivals than any other single issue. Get that conversation with a cross-border tax specialist done in your first month, not your third year.
