Sun, space and a British way of life — but one of the hardest countries for British retirees to settle
Typical monthly outlay for a single retiree, in pounds.
| Category | £ / month |
|---|---|
| Rent (1-bed apartment) | £1000 |
| Groceries | £320 |
| Utilities (electric, water, internet) | £140 |
| Local transport | £130 |
| Healthcare (private cover or co-pays) | £160 |
| Leisure (dining, entertainment, travel) | £350 |
| Total (single) | £2,000 |
| Total (couple, typical) | £2,800 |
Australia's Investor Retirement Visa (subclass 405) closed in May 2018. British citizens can visit Australia for up to 3 months without a visa under the Electronic Travel Authority (ETA). Long-term residence requires Permanent Residence via skilled migration (General Skilled Migration, Employer Sponsored), family sponsorship (parent visa via Aged Parent or Contributory Parent), or the Global Talent Program. Parent visas have extremely long waiting lists (10–30 years for non-contributory; 2–3 years for contributory at high cost).
Australia has a double taxation agreement with the UK. Once Australian resident, UK pensions are taxed only in Australia. The tax-free threshold is A$18,200/year (≈£9,500). The full UK State Pension of £11,973/year is above the Australian tax-free threshold, so some tax is payable — but at the 19% starter rate. Australia's Seniors and Pensioners Tax Offset (SAPTO) can reduce this significantly. The UK-Australia Social Security Agreement (1994) helps coordinate benefit entitlements.
Medicare is available to Australian citizens, PR holders, and some specific visa holders. British visitors on ETAs or tourist visas do not qualify. The UK-Australia Reciprocal Healthcare Agreement allows UK residents visiting Australia to access medically necessary treatment at public hospitals — but this applies only to temporary visitors, not residents. Private health insurance is essential for most British retirees until Medicare eligibility is established.
Queensland's Gold and Sunshine Coasts host the largest concentration of British retirees in Australia. Lower costs than Sydney, superb beach lifestyle year-round, and a huge British expat social scene.
Perth has a Mediterranean climate, a manageable city size, and a very large UK expat community. Property costs less than Sydney or Melbourne. Margaret River offers stunning wine country and coast.
Sydney is Australia's most iconic city but among its most expensive. The Central Coast and Blue Mountains offer lower costs with excellent access to Sydney's facilities.
Adelaide is consistently ranked among the world's most liveable cities and offers substantially lower costs than Sydney or Melbourne. Excellent wine regions nearby and a gentler pace of life.
Yes. The UK State Pension is frozen in Australia at the rate it was when you first claimed or when you emigrated. It never increases, no matter how long you live there. With UK inflation averaging 2–4% per year, a 20-year retirement in Australia could mean your pension buys less than half of what it would in the UK. Over 1 million UK pensioners are affected by pension freezing in Australia.
Formal retirement without family ties is now essentially impossible. The Investor Retirement Visa was abolished in May 2018. Your options are: (1) If your child is an Australian citizen or PR holder, apply for the Contributory Parent visa (subclass 143) — around A$50,000+ per person, 2–3 year wait; (2) Non-contributory Parent visa — little cost but 10–30 year waiting list; (3) Skilled migration if you are still of working age and qualify. Many British retirees who moved to Australia did so decades ago via work, are now PR holders, and benefit from Medicare.
The UK-Australia Reciprocal Healthcare Agreement means UK residents visiting Australia can access medically necessary treatment at public hospitals at no or low cost. However, this is for temporary visitors only — not residents. If you gain Permanent Residence, you qualify for Medicare, Australia's universal healthcare scheme, which covers GP visits, most specialist consultations, and public hospital stays.
A comfortable single-person budget in Queensland or Western Australia starts around £1,800–£2,000 per month including rent. Sydney and Melbourne are significantly more expensive — £2,500–£3,500/month for a comfortable single lifestyle. Costs have risen sharply since 2021 due to rental inflation. Property ownership is common among long-term British expats and substantially reduces monthly outgoings.
The Contributory Parent visa (subclass 143) allows parents of Australian citizens or permanent residents to live in Australia permanently. It costs approximately A$50,000+ per person (including the second instalment), has a processing time of around 2–3 years, and requires the sponsoring child to provide an Assurance of Support bond. There is also a temporary version (subclass 173) which is a step toward permanent residence.
Last full editorial review: 15 August 2026. We refresh figures and visa rules annually against the following authorities.