Financial Advice for New Migrants to Australia

Understanding the Australian Financial System

Australia has a unique financial system that may be unfamiliar to new arrivals. Key features include compulsory superannuation (employers contribute 12% of your salary into a retirement fund), the Medicare universal healthcare system, the Age Pension means test, and a financial advice industry regulated by ASIC. If you are seeking financial advice as a new migrant, it is important to understand how these systems work and how they apply to your situation.

Getting Your Tax File Number and Banking Set Up

Before seeking financial advice, ensure you have a Tax File Number (TFN) from the ATO and an Australian bank account. Your TFN is required for work, tax, and superannuation. Many banks offer accounts specifically for newcomers. Your adviser will need these details to provide personal advice, and your Statement of Advice or Client Advice Record should reference your TFN and banking arrangements appropriately.

Superannuation for New Migrants

If you are working in Australia, your employer must pay superannuation into a fund you choose. You can transfer overseas pension funds into Australian super under certain conditions, though tax implications apply. When your adviser recommends a super fund or consolidation strategy, your advice document should explain how it accounts for your status as a new migrant — including any plans to stay in Australia long-term or return overseas.

Insurance Considerations

Health insurance, life insurance, and income protection work differently in Australia than in many other countries. Private health insurance can help you avoid the Medicare Levy Surcharge if you earn above a threshold. Your adviser should explain how Australia's insurance system compares to what you are familiar with and whether your existing overseas policies cover you here.

What to Check in Your Advice Document

If you receive financial advice as a new migrant, your SOA, ROA, or CAR should address your visa status, your long-term intentions in Australia, any overseas assets or income, and how cross-border tax issues are managed. If these factors are not addressed, the advice may not be fully appropriate for your circumstances.

Understanding the Australian Financial System

New migrants need to understand several key features of the Australian financial system. Australia has a compulsory superannuation system — your employer must contribute 11.5% of your salary to a super fund (rising to 12% by 2025). You can choose which super fund your contributions go to. Medicare provides universal healthcare access, and the tax system uses a progressive tax rate structure.

The Australian financial advice industry is highly regulated. Licensed advisers must comply with the best interests duty and other consumer protections. This means you can have confidence that regulated advice meets professional standards.

Managing International Finances

If you have assets, super, or investments in another country, managing international transfers requires careful planning. Tax implications vary depending on the country and the type of asset. Australia has tax treaties with many countries that may affect how your overseas assets are treated.

Transferring money between countries involves currency exchange costs. Consider using specialist international money transfer services rather than banks for better exchange rates. Keep records of all transfers for tax purposes.

Building Australian Credit History

Building a credit history in Australia is important for accessing loans and credit. Start with basics: open an Australian bank account, get a mobile phone plan in your name, and (once established) apply for a low-limit credit card that you pay off in full each month.

Your international credit history does not automatically transfer to Australia. Australian lenders will assess your creditworthiness based on local credit reporting. Building a positive credit history takes time but is essential for future borrowing needs.

Frequently Asked Questions

Can I transfer my overseas super to Australia?
It depends on your country of origin and the type of super/pension. Australia has reciprocal arrangements with some countries for certain types of pensions. Seek specialist advice before transferring.

Do I need a TFN and what is it?
A Tax File Number (TFN) is essential for working in Australia, filing tax returns, and accessing government services. Apply through the Australian Taxation Office website. You can start work without a TFN but will be taxed at the highest marginal rate.

How does Medicare work for new migrants?
Medicare eligibility depends on your visa type. Permanent residents and some temporary visa holders are eligible for Medicare. Others may need private health insurance. Check your visa conditions and apply for Medicare through Services Australia.

What insurance do new migrants need?
At minimum: health insurance (if not eligible for Medicare), life insurance, and income protection. Consider also: travel insurance if you travel internationally, and contents insurance for your belongings.

What Financial Advice Typically Costs

What does advice cost in practice? The typical ongoing fee sits around $4,700–$4,800 a year — a figure that has climbed 67% in five years, though annual growth has cooled to roughly 4%. Starting out, expect an initial Statement of Advice to be priced between $2,000 and $3,500, with specialist hourly rates anywhere from $300 to $600. Since FOFA banned commissions on investment advice, fee-for-service billing has become the norm.