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Would we survive on 1 wage?


jamharr

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Hi,

 

Really want to move to Brisbane and have been offered a job but the wage is not as much as I'd hoped! Do people think a family of 4 could live on a basic wage of $55000? This doesn't include the superannuation etc.

 

We would hope to rent a 3 bed house in the suburbs not in Brisbane centre - maybe around Petrie area.

 

Any help/advice would be greatly appreciated

Thanks!!

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To give you an idea of what lifestyle it will equate to use 2.5 as the exchange rate. If you currently live with an annual income of roughly 22-25k a year then you'd know what to expect as that is what it would roughly equate to.

 

The other thing I could suggest is that you list all your current outgoings and work them out a percentage of your current wage, then do a similar working based on your expected Australian outgoings.

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For a little while we (me, OH and two kids) have been living on just my wage here in Adelaide, which is about $54.5k, plus super. We pay $420 a week on rent and have a mortgage on some land that costs us about $350 a month. I did a proper budget taking in to account all our costs based on our knowledge of what they are (we've been in the house since August) and we could manage but only just and my income would only cover bills and essentials. And we were getting over $300 a fortnight in centrelink payments on top. I'd say on a 457 with no family assistance you would really struggle on $55k.

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For a little while we (me, OH and two kids) have been living on just my wage here in Adelaide, which is about $54.5k, plus super. We pay $420 a week on rent and have a mortgage on some land that costs us about $350 a month. I did a proper budget taking in to account all our costs based on our knowledge of what they are (we've been in the house since August) and we could manage but only just and my income would only cover bills and essentials. And we were getting over $300 a fortnight in centrelink payments on top. I'd say on a 457 with no family assistance you would really struggle on $55k.

 

Really good to hear from the horses mouth. Your opinion is worth a lot having been in the situation, hopefully this should help the OP.

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Is that before or after tax?

If it's before then no it would be pretty tough, if it's after then it is possible.

 

Yes that's before tax - so it's not looking good!

 

The only other thing they have said is that there is a salary sacrifice scheme of $26000 a year to go on rent, utilities etc before tax but I doubt this makes that much difference.......

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Yes that's before tax - so it's not looking good!

 

The only other thing they have said is that there is a salary sacrifice scheme of $26000 a year to go on rent, utilities etc before tax but I doubt this makes that much difference.......

 

 

Have they given you a total package that is made up of $55 base salary + super + $26 for salary sacrifice OR have they said you can salary sacrifice up to $26 from the $55?

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Can you go to a pay calulator like this one:

http://www.paycalculator.com.au/ and work out exactly what your take home pay would be. Then do a budget.

 

The thing that gets me is there is always something that needs replacing that you can't really budget for. Also remember things like school uniforms, birthday presents, school trips and book packs.

Happy to help with costs as we are not far from Petrie so have a good idea of food costs, electricity etc.

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I don't know Brisbane living costs. Were you talking Sydney I would be giving an unconditional "don't do it"

 

Brisbane is much cheaper BUT even if it is manageable you're going to be scraping by I think. And with no safety net on a 457? Think very hard. Some may be OK with uprooting their family and moving to the other side of the world to scratch a living. I wouldn't. Lots of people find it hard enough (homesickness, missing family/friends, whatever) without the money worries and money worries give you a lot of stress. Yes, there are people living in Aus on pretty poor money - which that is - but most of them have been here for ever and don't have to pay full whack for housing and/or have lots of family and/or government support

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Excellent idea from Alaska - work out exactly what your income will be (i.e. after tax and super).

 

Then get an understanding of your costs - rent, food, travel, utilities etc but also think about mandatory 457visa health insurance and any ongoing UK obligations (mobile phone etc).

 

In Perth I know families who survived on $60k but it was extremely tight for them and they had no cover for one off expenses. I would probably make your employer aware of your situation and they may well be more generous with salary or reloaction package if demand for your skills is in short supply.

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Hi Alaska, thanks for all the help (from everyone as well). I've got myself quite confused so have emailed my 'potential employer' to confirm whether the SS is included in the wage or extra (didn't think that it might be extra as I guessed it was like we can do with childcare vouchers back here in the UK). If it's extra then we're laughing!! If it's not....... so fingers crossed!!

 

Your offer of help of costings (utilities, train etc) would be fantastic and also if you could recommend any other places around the Petrie area to live - I just need to be quite close to a train station to get to the Royal Brisbane hospital each day.

 

Thanks in advance

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Hi there.

Some of our costings per month:

Eletricity: $160 per month (last bill running dishwasher, occasional fan plus all usual things)

Car Rego: $50

Car Insurance: $40

Contents Insurance: $20

Water: $30 - ours isn't a water efficient property so the landlord pays most of it and we pay the extra.

Food: Approx $600 or closer to $800 including all toiletries, toilet rolls, washing powders etc

School: $30 (uniforms, book pack etc)

Internet and phone: $90 (including a few international calls). Is it around $70 for the internet and phone line.

Petrol - depends on your usage but around $1.35 a litre.

We don't have foxtel but the basic package was around $80 a month when we first arrived.

 

That's some of the basics. Of course there are a fair few extras - birthday presents, Christmas stuff, replacing things (like our fridge just broke down).

Also dental needs to be thought about as that is very expensive and could be worth looking at extras cover. If you have school age children then they have the "school bus" where they can go for free for check ups I believe. I don't know if there is any issue with being on a 457 for this or not.

You don't need health insurance on a 457 (apart from for the granting of the visa) if you have a UK passport. We have been entitled to the reciporal Medicare which has seemed, so far, to be exactly the same as anyone else gets.

 

I don't know about the trains but go to the Translink website to find out costs. People here have the Go Cards which makes it a fair bit cheaper than the regular one-way fare. If you put in a route it should tell you the costs.

 

If your children are in school use the myschool website for information about the schools - sizes, results, links to website, socio-economic information etc. I hear Narangba is good and has a good school but you have to live in catchment I think.

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Yes that's before tax - so it's not looking good!

 

The only other thing they have said is that there is a salary sacrifice scheme of $26000 a year to go on rent, utilities etc before tax but I doubt this makes that much difference.......

 

That might mean you are under the minimum salary threshold for the visa.

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Hi there.

Some of our costings per month:

Eletricity: $160 per month (last bill running dishwasher, occasional fan plus all usual things)

Car Rego: $50

Car Insurance: $40

Contents Insurance: $20

Water: $30 - ours isn't a water efficient property so the landlord pays most of it and we pay the extra.

Food: Approx $600 or closer to $800 including all toiletries, toilet rolls, washing powders etc

School: $30 (uniforms, book pack etc)

Internet and phone: $90 (including a few international calls). Is it around $70 for the internet and phone line.

Petrol - depends on your usage but around $1.35 a litre.

We don't have foxtel but the basic package was around $80 a month when we first arrived.

 

That's some of the basics. Of course there are a fair few extras - birthday presents, Christmas stuff, replacing things (like our fridge just broke down).

Also dental needs to be thought about as that is very expensive and could be worth looking at extras cover. If you have school age children then they have the "school bus" where they can go for free for check ups I believe. I don't know if there is any issue with being on a 457 for this or not.

You don't need health insurance on a 457 (apart from for the granting of the visa) if you have a UK passport. We have been entitled to the reciporal Medicare which has seemed, so far, to be exactly the same as anyone else gets.

 

I don't know about the trains but go to the Translink website to find out costs. People here have the Go Cards which makes it a fair bit cheaper than the regular one-way fare. If you put in a route it should tell you the costs.

 

If your children are in school use the myschool website for information about the schools - sizes, results, links to website, socio-economic information etc. I hear Narangba is good and has a good school but you have to live in catchment I think.

 

Thanks Alaska!! Invaluable info.

 

For the salary issue I think I was being a bit of a fool - have double checked and I would be getting $55000 basic + super + $36000 salary sac (for rent, bills etc) so really a wage of $90000 so should be fine.

 

Thanks to everyone for your help - I was just getting last minute jitters!!

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Thanks Alaska!! Invaluable info.

 

For the salary issue I think I was being a bit of a fool - have double checked and I would be getting $55000 basic + super + $36000 salary sac (for rent, bills etc) so really a wage of $90000 so should be fine.

 

Thanks to everyone for your help - I was just getting last minute jitters!!

I really think you need to be very clear about this. Salary sacrificing is the proportion of your basic wage which is used to pay for certain things such as rent, mortgage, car etc.

 

You really need to make sure this is additional to a basic wage or If it is simply the amount of your basic wage you will be able to salary sacrifice. I have never heard of it being dealt with as a separate amount.

Be very clear before you agree to anything.

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Thanks Alaska!! Invaluable info.

 

For the salary issue I think I was being a bit of a fool - have double checked and I would be getting $55000 basic + super + $36000 salary sac (for rent, bills etc) so really a wage of $90000 so should be fine.

 

Thanks to everyone for your help - I was just getting last minute jitters!!

 

 

No no no. Salary sacrifice does not mean you get that on top of salary. It means that you can pay your rent out of salary before tax. You still have the same salary. It will mean you might save a grand in tax. That's all.

 

Personally, I think 55k is going to be tight. What is your current income? If it is less than about 22k pounds, then it is not a good thing

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It's exactly as Stormy says. You simply allocate certain 'bills' to be paid before tax. It does not mean you get an additional 360000 on your wage! whatever you salary sacrifice will be from within, not separate to, the 550000.

 

We have some things salary sacrificed ourselves, so I am very aware how it works....

 

By the way have you seen this thread?

 

http://www.pomsinoz.com/forum/migration-issues/172565-52000-year-liveable-brisbane.html

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Thanks this is what we thought but I have it in writing from the Manager and HR that the basic salary does not include the salary sacrifice.

This sounds odd to me. SS is simply a way of paying less tax....it is not an amount of money.

 

What is the job?........is it worth $90000??

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Hi Verystormy - that's what we thought but I have it in writing from HR and the manager that 'the contract I have received does NOT take into account salary packaging benefits'

Salary packaging benefits are simply the amount of your salary which can be used to reduce your tax bill......you really need to get them to put the total salary in writing if they have not already done so...forget the salary sacrifice for now.

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