Australia Money

Your Australian budget

The cost of living in Australia varies for each individual international students. However, on average, the cost can be considerable. So budgeting is very important to ensure you meet your financial obligations and have enough to buy items you need as well as miscellaneous items like entertainment.

If you’re thinking of travelling to Australia as an international student and it’s your first time away from home (living away from your parents), it can be an exciting but sometimes difficult experience. You might be responsible for things like paying for rent, electricity and food. This kind of responsibility, if it’s the first time for you, can end up being almost as stressful as your studies. So to prepare for the transition into being self-responsible, it’s a good idea to sit down and plan a realistic budget. Try and envisage what you’ll need to buy and pay for every week while in Australia. If you take care to plan, research and apply self-discipline, you’ll keep to your pre-planned budget that affords you a good level of living. You certainly don’t want to let spending get out of control.

To help with financing your studies, you might like to work part-time. International student visa holders can work up to 20 hours per week during study periods. However, don’t rely entirely on your wages from part-time work to live on. First of all, it can be very difficult to find part-time work. Also, part-time work available is not often well-paid part-time work. In this way, you should treat any income you earn while you’re in Australia as simply a bonus, but not as the main source of your budget. You’ll need to have additional money with you to support yourself adequately. As stated before, this will depend on your rental costs, travel experiences, food bill and other miscellaneous costs.

Overall, besides your tuition fees, your accommodation costs will by far be your biggest financial burden. By researching cost-effective accommodation options, you’ll ensure you can pay the living costs that results from studying in Australia before you arrive. For example, although you might find good accommodation close to your institution, you may source less expensive accommodation a little further away. Also, it’s a good idea to research what the advertised price of your accommodation covers. For instance, the price of on-campus accommodation might only cover a shared room facility or accommodation plus dinner every night.

Another aspect you should consider when budgeting are utility costs (such as electricity, gas, water, telephone), public transport, mobile phone plans, food and miscellaneous school supplies not covered by your tuition fees (such as pens, paper, text books, stationery, compulsory excursions). As expected, these costs vary depending on the state, city, or town you’ll be living and studying while in Australia.

For a basic guide on how much common items cost in Australia, we’ve placed together a rough list for you:

• Loaf of bread $3.50
• Apples (1kg) $2.00 to $5.00
• Rice (1kg) $1.60
• Milk (1L) $1.60
• Pubs: entry usually free but a serve of beer is usually from $3.00 to $10.00 (depending on location)
• Nightclubs: some have free entry, others have cover charges costs from $5.00 to $15.00
• Bag of pasta $2.00
• Big Mac $3.95
• CD purchase versus music downloads $25 v $1.99 (iTunes)
• Can of Coke $2.20
• A basic home-cooked meal $5.00 to $10.00
• Large take-away coffee $3.50
• Sandwich from a café $6.50
• Bag of essential groceries $30.00 to $50.00
• Cinema ticket $5.00 to $10+ (student discount)
• Gym memberships $10.00–40.00 per week
• DVD rentals from $2.00 to $7.00 overnight (new release)
• Professional sporting events $30+

Please note that a goods and services tax (GST) of 10 per cent is applied to most goods and services in Australia (except fresh fruits and vegetables, meat, bread and dairy products). However, the GST is automatically included in price of the item. Also, it might be useful to know that the cost of goods and services is monitored by the Australian Competition and Consumer Commission (ACCC) to protect consumers from unfair charges on items. However, costs do vary slightly from store to store. So, if you’re making a purchase, especially of a big item like a TV or computer, try visit a couple of stores to find most competitive price.


Being on a budget as an international student

Juggling your finances can be stressful. But if you place together a sensible budget, you can reduce your stress levels so that you can enjoy your time in Australia as well as your studies. To help you in this task, we’ve placed together a checklist of budget tips to help you manage your bank balance and expenses.

Here they are:

• Make of list of things you need to pay for every month while in Australia. Now add up the total estimated cost. This is your expense budget. You should add another 10-30% on top of this monthly budget but for hidden expenses.
• Now, identify things that you have to pay for regularly (either weekly or monthly like rent, phone bills, gym membership). Try and set-up an automatic payment process from your bank account on the due date. In Australia, this process is called direct debit. This ensures your payments are never late payments (so you did get a late fee) as well as avoids you having to stand in line for an hour to make the payment in person.
• However, if you don’t set-up direct debits, mark your due dates in your diary to ensure you pay on time and don’t get a late fee.
• Give yourself a reasonable budget to ‘live on’ each week. For instance, you could withdraw $120 at the beginning of the week and discipline yourself from withdrawing more until the following week.
• Ensure you have enough money in your account at all times.
• Avoid credit cards. It’s too easy to misuse them and you’ll end up with a costly bill if you use it on items that aren’t a necessity (like expensive shoes and high-end mobile phones etc). However, if you’re responsible with your budget and spending habits, you can use the credit card for emergencies only. If you shop around, you can find a low interest rate (i.e. 5.99%). But stay away from credit cards that are as high as 24.99%!  
• If you intend to buy things online, try using a debit card (which is similar to a credit card, but you’re only using your money) or BPay (paying through your savings account). This protects you from paying credit card interest rates.
• Look for free street press magazines. You can source them at cafes, music stores, universities, news agencies, cinemas, student stores and education institutions. Often, you can find for details of upcoming cheap or free activities (like concerts, art exhibitions, outdoor markets, sporting events and festivals).
• You can minimise bank fees by only using them at their ATMs only and by minimising withdrawals you make using EFTPOS.
• Lastly, live within your means and economically. If you stick to your budget, you can reduce your cost of living costs of living.
• Look into buying second-hand furniture and clothes in good condition at co-op stores like the Salvation Army or weekend markets.

Banking and insurance matters

When you arrive in Australia, you will need to open a bank account. There are lots of banks and credit unions in Australia to choose. You will need to research which is the best option for you as they all have slightly different fee and interest rate structures. Once you’ve decided on your preferred bank, you can apply to open an account with them. The process should be simple. You have your identification and other relevant important documentation. Check with the bank and credit union on what you will need to bring at the appointment. However, your passport should be sufficient for your first six weeks in Australia. Later, you may also need to provide your birth certificate and documents showing your current address (such as a copy of your tenancy agreement). Another document you’ll need to show as an international student, is your student visa. However, if you’re under the age of 18, you might need to show a school photo ID and a letter from your school principal. Lastly, to avoid paying higher tax on your savings interest, advise your bank of your Tax File Number. This is available from the Australian Taxation Office.


Bank trading hours

Operational hours for banks and credit unions are usually between 9.30 am to 4.00 pm Monday to Thursday and 9.30 am to 5.00 pm on Friday. However, some banks are open on Saturday mornings, but all are closed on Sundays and public holidays.


ATMs

To access your money outside operational hours, visit an Automatic teller machines (ATMs). They are readily 24 hours a day.


EFTPOS

You can also access your money to pay for items using EFTPOS (Electronic Funds Transfer At Point of Sale). They are located in most stores including supermarkets.

Credit cards
Most credit cards are accepted in Australia like MasterCard, Visa, Bankcard, American Express and their affiliates. In this way, it’s not necessary to carry large amounts of cash with you.

Transferring funds
Western Union offices are located throughout Australia. You can transfer money through them directly. Another method is by transferring money by bank drafts or cheques and telegraphic transfer. A bank draft from overseas will take a few days to arrive. However, it can take up to 10 working days to clear through an Australian bank. If you need access to money faster, try using a telegraphic transfer which usually takes a shorter time (but it costs more too). Lastly, cheques take about five –ten working days to clear.