Key Takeaways:
- Many Australians are leaving the country in search of higher incomes and better work opportunities, as well as to escape the high cost of living and housing crisis.
- Singapore has become a popular destination for Australian expats, with around 25,000 Aussies calling the city-state home.
- The cost of living in Singapore can be high, but the city offers many benefits, including a vibrant lifestyle, low crime rates, and generous tax breaks.
- Australian expats can save money on taxes, with the highest income bracket in Singapore paying 15% tax compared to 45% in Australia.
- However, there are also some downsides to living in Singapore, including the high cost of housing, food, and other expenses, as well as the transient nature of expat life.
Introduction to the Expat Life
Australians are ditching their home country in search of higher incomes and work opportunities, while also escaping the cost of living and housing crisis. The steep rise of housing and living costs over the last five years has not been matched by corresponding increases in Australian salaries, causing many Aussies to search elsewhere to make ends meet. One popular destination for Australian expats is Singapore, which has become home to an estimated 25,000 Aussies. Vy Pham, a 48-year-old Australian, relocated to Singapore from Sydney in 2024 for a career opportunity she couldn’t say no to. She has found that the city offers a unique blend of career opportunities, lifestyle, and tax breaks that make it an attractive option for expats.
The Benefits of Singapore
After living in Singapore for over a year, Ms. Pham has fallen in love with the lifestyle. She loves the city’s remarkable connectivity, with nearby Southeast Asian destinations just a short flight away. She also appreciates the city’s efficiency, safety, and vibrant social scene, which make it easy to balance work and play. Additionally, the city feels familiar to Australians, with a large expat community and English widely spoken. Ms. Pham notes that the city’s low crime rates and well-maintained public spaces also make it an attractive option for families. However, she warns other expats about the potential pitfalls of owning a property while living and working overseas long-term, including the risk of facing a hefty capital gains tax bill.
Housing Costs in Singapore
When it comes to housing, Ms. Pham notes that the prices for a one-bedroom apartment in Singapore are similar to those in Sydney, with rents ranging from $2,900 to $4,600 per month. However, purchasing a home as a non-Singaporean citizen can be expensive, with hefty taxes adding around 60% to the purchase price. Additionally, living space in Singapore homes tends to be smaller, so buyers are paying a premium for location and convenience rather than square footage. Ms. Pham notes that these costs can be a major deterrent for many expats, and that it’s essential to carefully consider the costs and benefits before making a decision.
Food Prices and Hidden Charges
Dining out in Singapore can be a mixed bag, with prices ranging from cheap to expensive. Ms. Pham notes that casual meals can be affordable, but mid- and high-end dining can be pricey, with alcohol adding a significant layer of cost due to duty and taxes. She also warns about "hidden charges" that Aussies may not be accustomed to, such as the 9% GST and 10% service charge that are often added to restaurant bills. Additionally, groceries can be expensive, with the average monthly cost coming in at around $680. However, Ms. Pham notes that the city’s hawker centers offer a affordable and delicious option for meals, with prices starting from around $5-$8.
Salaries and Tax Breaks
Despite the high cost of living, Ms. Pham notes that the salaries and tax breaks in Singapore make it an attractive option for expats. For the highest income bracket, the tax rate in Singapore is 15%, compared to 45% in Australia. This, combined with the higher salaries offered in Singapore, particularly in the finance industry, makes it an attractive option for those looking to boost their income. Ms. Pham notes that she has not faced any significant challenges in her time in Singapore, except for the tropical climate and the transient nature of expat life.
The Transient Nature of Expat Life
One of the downsides of living in Singapore as an expat is the constant churn of friendships. With many expats staying for only a few years, relationships can feel temporary, and it can be challenging to form lasting connections. Ms. Pham notes that this is a unique reality of expatriate life in Singapore, and that it’s essential to be prepared for the steady, almost revolving door of acquaintances. Despite this, she has found that the benefits of living in Singapore far outweigh the drawbacks, and that the city offers a unique and exciting lifestyle that is hard to find elsewhere.