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Living and Working in Australia

An overview of life, work and the economy in the land of opportunity.

Australia as a Migration Destination – An Overview

Australia combines economic stability, a high quality of life and a safe social environment. Anyone who wishes to live or work in Australia in the long term benefits from clear structures, modern working conditions and a welcoming immigration system.

The Australian system is consistently geared towards skilled workers and families who want to actively contribute to economic and social life. This page gives you a concise overview of the most important topics that are relevant for long-term life planning in Australia – from the labour market and taxation through to healthcare, retirement provision and setting up a business.

On this page, you will find information on the
following topics:

Population and society
Labour market and economy
Health care system
Taxation and finances
Pension and retirement system
Starting a business in Australia

Population and Society

Australia is one of the most liveable countries in the world – with a high quality of life, a stable economy and an open, multicultural society. People who only know the country as tourists often associate it with beaches, the outback and unique natural landscapes. But behind this backdrop is a modern nation with high educational standards, excellent healthcare and a well-organised social system.

Australia has been steadily growing for decades – primarily through skilled migration. Migration is one of the main drivers of population growth: more than a quarter of today’s roughly 26 million inhabitants were born overseas, and almost every second Australian has at least one parent who was not born in Australia. This makes Australia one of the most culturally diverse societies in the world.

The Australian population is heavily concentrated along the coastal regions – particularly along the east coast, where around 80% of people live. This is also where the major cities are located: Sydney, Melbourne and Brisbane. The south coast with Adelaide and the west coast with Perth form other important urban centres, while the interior – the outback – remains almost unpopulated, with fewer than one inhabitant per square kilometre.

Despite its vast land area, Australia is home to a relatively small population. Forecasts suggest that the Australian population will grow to around 40 million people by 2050 – an increase of roughly 50% compared to today. This growth will continue to be driven strongly by immigration, particularly through international skilled workers, students and families who settle permanently.

Australia is known for its pragmatic, open way of life. Fairness, equality and social cohesion are central values that are noticeable in everyday life. Communication tends to be straightforward, respectful and shaped by mutual acceptance – regardless of origin, religion or profession.

Family-friendliness plays an important role: childcare, education and leisure activities are of a high standard, and flexible working models allow parents to better balance work and family life. Volunteering is also very common – many Australians are involved in local associations, sports clubs or environmental projects.

Australia regularly ranks among the top 10 most liveable countries in the world. Cities such as Melbourne, Sydney, Adelaide and Perth consistently score highly in international rankings for living standards, safety, infrastructure and education. The combination of economic stability, social openness and a high degree of personal freedom contributes to Australians being among the most satisfied people in the world.

Australia is not only a country with impressive nature and economic strength – it is also a social model that combines openness, social stability and individual freedom. Those who settle there find an environment that embraces cultural diversity and actively supports people as they settle in.

Labour market and economy

Australia has a modern, highly diversified and stable economy. It is based on a balanced mix of resource industries, services, education, research, healthcare, construction and technology. Despite global challenges, economic growth has remained largely steady over recent decades.

Unemployment generally remains at a relatively low level. At the same time, there is a significant shortage of skilled workers in many sectors – particularly in technical, trade and medical professions as well as in education and IT.

The Australian workplace culture is characterised by openness, fairness and pragmatism. Organisational hierarchies tend to be flat, and communication is direct and uncomplicated. Performance is valued – but a respectful, team-oriented approach is considered just as important.

Key features include:

Australia’s labour market is often described as fast-paced and dynamic. Recruitment and hiring processes generally move more quickly, and changing jobs more frequently is socially accepted. Companies respond flexibly to economic changes, which leads to a more vibrant, but also more competitive working environment.

Australia actively addresses its skills shortage through immigration. Through programs such as General Skilled Migration and various employer-sponsored visas, qualified professionals from overseas are recruited. These systems are clearly structured and take into account qualifications, work experience, language skills and age.

International students also play an important role. Many use their studies or vocational training in Australia as a springboard into the labour market and create long-term prospects for themselves through the Temporary Graduate Visa or a skilled visa.

Most job vacancies are advertised online — on platforms such as Seek, Indeed or LinkedIn, or directly on employer websites. Recruitment agencies and specialised recruiters also play a major role, particularly in high-demand professional fields.

Applications usually consist of an English-language CV and a short cover letter. Certificates, photos or certified documents are typically only requested in later stages of the recruitment process. Clear information about your work experience, qualifications and referees is more important.

Tip: Always include your current visa status in job applications. This gives employers clarity about your work rights and employment options.

Healthcare system

Australia has one of the most effective and best-organised healthcare systems in the world. It combines a solid public base level of care with a wide range of private additional services. The aim is to ensure that all residents – regardless of income or background – have access to high-quality medical care.

The Australian healthcare system is considered one of the best in the world – with modern facilities, high standards of care and short response times in emergencies. In rural and remote areas, however, access to specialists and hospitals can be more limited, which is why telemedicine and Flying Doctor Services play an important role there.

Medicare is the backbone of the Australian healthcare system. It is funded through taxation and provides all Australian citizens, permanent residents and people from countries with certain reciprocal health care agreements with access to essential health services

Medicare benefits include:

Australians can choose whether to see a doctor who bills directly to Medicare (known as bulk billing). In that case, there are no out-of-pocket costs. If the doctor charges a higher fee, the patient must pay the difference themselves or cover it through private health insurance.

People coming to Australia on a temporary visa — such as a Student Visa, Temporary Graduate Visa or Employer Sponsored Visa — generally need to hold private overseas health insurance for the entire duration of their stay.

International students, for example, are required to have Overseas Student Health Cover (OSHC). For other types of temporary visas, there are comparable products such as Overseas Visitor Health Cover (OVHC).

These policies cover the most important services – doctor visits, hospital stays and medications – but the scope of cover varies depending on the provider.

Temporary visa holders

Taking out private health insurance is voluntary, but encouraged through government incentives. People with higher incomes who do not have private hospital cover, for example, pay an additional tax (the Medicare Levy Surcharge). This is intended to encourage private co-insurance and relieve pressure on the public system.

Private health insurance complements the public system. It covers services that Medicare does not cover or only partially covers – for example:

Note: Only some countries have reciprocal healthcare agreements with Australia; not all travellers are covered.

taxation and finance

Australia has a transparent and easy-to-understand tax system with clear structures and straightforward processes. It is based on progressive income tax, a moderate value-added tax (Goods and Services Tax, GST) and comparatively low social contributions.

The system is considered fair and citizen-friendly: many public services – from healthcare and family benefits through to education – are funded directly through tax revenues rather than through separate social contribution systems.

Tax year: 1 July to 30 June
Income tax: progressive, with tiered rates – the higher the income, the higher the tax rate
Goods and Services Tax (GST): 10%, applied uniformly to most goods and services
Tax File Number (TFN): required for all individuals who earn taxable income

Australia levies progressive income tax. The thresholds are adjusted regularly.

Australia does not have traditional social security contributions such as pension, unemployment or long-term care insurance. These benefits are largely financed from general tax revenue. As a result, the overall tax burden is noticeably lower and disposable net income is often higher.

A mandatory component of income tax is the Medicare Levy, which helps fund the public healthcare system. People with low incomes can be exempt from this levy, while higher-income earners without private hospital cover pay an additional Medicare Levy Surcharge.

Because most social benefits are funded by taxation, there is no complex separation between the tax and social insurance systems in Australia. Government support is targeted, for example through:

This direct funding through taxation makes the system more efficient and avoids parallel structures.

Tip: For migrants and skilled workers, it is worthwhile seeking tax advice in Australia at an early stage, especially in cases of foreign income, investments or business activities.

Pension and Retirement System

Australia’s pension system differs significantly from many traditional models: it is predominantly funded through compulsory private savings and places strong emphasis on individual responsibility and early retirement planning. The system is based on three pillars that together are designed to ensure financial security in old age.

Age Pension – State Safety Net

The Age Pension is a means-tested state pension designed to support people in retirement who do not have sufficient financial resources.

Australian citizens and permanent residents are eligible from a certain age (currently between 65 and 67 years, depending on year of birth).

The amount of the Age Pension depends on income, assets and living situation. Those with higher savings or additional pension entitlements receive less or no government payment.

Superannuation – compulsory capital-funded retirement savings

Superannuation is the core of the Australian retirement system. It is a compulsory, funded scheme into which employers automatically pay contributions.

Employers pay a fixed percentage of an employee’s gross salary into a chosen superannuation fund
Employees can make voluntary contributions (salary sacrifice) with tax advantages
Contributions are invested and earn returns over time
Investment earnings are taxed at a reduced rate during accumulation
Savings can generally be accessed tax-free once retirement is reached

Individuals who leave Australia permanently may be able to withdraw their savings as a Departing Australia Superannuation Payment (DASP) under certain conditions.

Private savings – voluntary additional contributions

In addition to compulsory savings, employees and self-employed individuals can invest voluntarily in private retirement funds or insurance products. These contributions are tax-advantaged and help build financial security beyond superannuation.

Many use this option to build wealth or optimise tax planning – especially self-employed people who do not receive employer contributions.

Instead of relying on pay-as-you-go models, Australia’s system is fully capital-funded. Each person builds their own retirement balance, which is invested and grows over time.

This structure provides long-term financial stability, as the system is less vulnerable to demographic change. However, individuals also carry more responsibility – particularly in choosing funds, investment strategies and additional savings.

Australia’s retirement system combines government support with personal savings and tax incentives. Those who contribute early and actively manage their funds can rely on a strong financial foundation in retirement.

starting a business
in australia

Australia is considered one of the most business-friendly countries in the world. Starting a business is straightforward, digital and involves relatively few bureaucratic hurdles. Entrepreneurs benefit from clear legal frameworks, low entry barriers and tax concessions for small and medium-sized enterprises.

The entire business registration process is completed online and usually takes only a few hours.
Those who want to start their own business need:

All steps can be completed digitally through the Australian Business Register (ABR) and the Australian Securities and Investments Commission (ASIC).

Business-friendly environment

Australia offers a stable, innovative economic environment with a strong start-up culture, particularly in Sydney, Melbourne and Brisbane.

Digital government services, easy market access and transparent legislation make Australia an attractive location – both for migrants with entrepreneurial ambitions and for skilled workers already living in the country who wish to become self-employed.

Sole Trader: Simplest form of self-employment, easy online registration, low barriers to entry, but full personal liability.
Partnership: Business structure for two or more partners sharing profits and losses; straightforward, but partners share unlimited joint liability.
Proprietary Limited (Pty Ltd): Company with limited liability; separate legal entity, no minimum capital requirement, simple online setup.

Sole traders and partnerships are taxed at the individual income tax rate.
Companies pay company tax (similar to corporate tax).
There are no compulsory social security contributions – employers only pay superannuation for their employees.

Holders of an Australian visa with work rights and no employer restrictions may work as self-employed individuals or establish a business.

Support from Visapath

As an Australia-based migration agency, Visapath supports skilled professionals and families on their pathway to an Australian visa – personalised, transparent and fully compliant with Australian law. We help you assess your circumstances accurately, plan your visa pathway and develop the optimal strategy for your case. Our goal is to maximise your chances and give you a clear, structured roadmap toward your visa.

Our Registered Migration Agents have extensive experience in Australian migration law and understand the typical questions applicants encounter.