Moving to Australia from India

Indian Tax Obligations and Australian Tax Residency

When you leave India to live abroad, your Indian tax obligations change based on your residential status under Indian income tax law. An individual who stays in India for fewer than 182 days in a financial year is classified as a Non-Resident Indian (NRI) ^[1]. NRIs are taxed in India only on income received in India or income that accrues or arises in India ^[1].

NRI status and Indian tax filing.

If you have Indian-source income (rental income from property in India, interest on Indian bank deposits, capital gains from Indian investments), you must file an Indian tax return even as an NRI. Income from NRE (Non-Resident External) accounts is tax-exempt in India. Income from NRO (Non-Resident Ordinary) accounts is taxable in India.

Australian tax residency.

Australia determines tax residency based on several tests including the resides test, 183-day test, and domicile test ^[2]. If you establish a home in Australia and intend to live there, you are generally treated as an Australian tax resident from your arrival date. Australian tax residents are taxed on worldwide income, including Indian-source income.

Bilateral agreement with India.

The Agreement between India and Australia for the avoidance of double taxation has been in force since 1991 and was modified by the Multilateral Instrument (MLI) ^[3]. The treaty assigns taxing rights for different income types and provides for foreign tax credits to prevent double taxation. If you pay tax in India on Indian-source income, you can claim a foreign income tax offset on your Australian return.

Superannuation.

Australian employers contribute a mandatory percentage of salary to a superannuation fund. India does not recognize Australian super as equivalent to an Employee Provident Fund (EPF) or National Pension System (NPS) account. If you leave Australia permanently, you may claim your super as a Departing Australia Superannuation Payment, subject to withholding tax.

Capital gains on Indian property.

If you sell property in India while an Australian tax resident, you must report the capital gain in both countries. India taxes capital gains on Indian property regardless of your residency. Australia taxes worldwide capital gains for tax residents. The treaty and foreign tax credits prevent double taxation ^[3], but the calculations require careful planning with a cross-border tax advisor.

Healthcare Transition

Australian Medicare.

Once you obtain permanent residency, you enroll in Medicare and receive a Medicare card. Medicare covers GP visits (bulk-billed or with a gap payment), public hospital treatment, specialist referrals through the public system, and subsidized prescriptions through the Pharmaceutical Benefits Scheme (PBS).

Temporary visa holders.

If you arrive on a subclass 482 (Skills in Demand) or other temporary work visa, you are generally not eligible for Medicare and must hold private Overseas Visitor Health Cover (OVHC). OVHC plans from Bupa, Medibank, and Allianz start at AUD 100-200/month for a single adult. This satisfies your visa condition and provides coverage until you obtain permanent residency.

Private health insurance.

Many Australians hold private health insurance for faster access to specialists, choice of hospital, and private rooms. The Medicare Levy Surcharge (1-1.5% of taxable income) applies to individuals earning above AUD 93,000 who do not hold private hospital cover. For higher earners, private insurance reduces the overall cost.

Comparing to Indian healthcare.

India's healthcare system relies heavily on private providers, and many Indians are accustomed to paying out-of-pocket for consultations and procedures. Australian Medicare removes much of this financial uncertainty for permanent residents. Public hospital treatment is free. The tradeoff is wait times for non-urgent specialist referrals and elective procedures through the public system, which can be months.

Prescription medications.

Australia's Pharmaceutical Benefits Scheme subsidizes most prescription medications. Bring documentation from your Indian doctor listing current medications by generic name (International Nonproprietary Name) and dosage. Most medications available in India are also available in Australia, though brand names differ. Some Ayurvedic and traditional medications are not regulated or available in Australia.

Mental health.

Medicare covers a set number of subsidized psychology sessions per year through a Mental Health Treatment Plan from your GP. This is a significant difference from the Indian healthcare system, where mental health services are less commonly covered by insurance.

Visa Pathways for Indian Citizens

India is one of the largest source countries for skilled migration to Australia. Multiple visa pathways exist, with the points-tested skilled visa system being the most common route.

Skilled Independent visa (subclass 189) [^src-homeaffairs-skilled-189-points-2025].

Points-tested, no employer or state sponsorship required. Grants permanent residency directly. Minimum points threshold is 65, but competitive invitations typically require higher scores ^[1]. Key factors: age (25-32 gets maximum points), English proficiency (IELTS/PTE scores), work experience, education, and skills assessment by the relevant assessing authority. Your occupation must be on the Medium and Long-term Strategic Skills List (MLTSSL). Popular occupations for Indian applicants include software engineers, accountants, civil engineers, registered nurses, and ICT professionals.

Skills in Demand visa (subclass 482) [^src-homeaffairs-sid-482-2025].

Requires a job offer from an approved Australian employer ^[2]. Three streams: Core Skills (occupation on the Core Skills Occupation List), Specialist Skills (high-income earners, no occupation list restriction), and Essential Skills. Valid for four years with a pathway to permanent residency through the Employer Nomination Scheme (subclass 186) ^[2].

State-nominated visa (subclass 190) [^src-homeaffairs-skilled-189-points-2025].

Points-tested with 5 additional points from a state/territory nomination. Requires you to live in the nominating state for two years. Grants permanent residency. States like South Australia, Tasmania, and the Northern Territory actively recruit Indian skilled workers in specific occupations.

Skilled Work Regional visa (subclass 491) [^src-homeaffairs-skilled-189-points-2025].

Points-tested with 15 additional points from a state nomination or family sponsorship. Requires living and working in a designated regional area for three years before applying for permanent residency (subclass 191).

Student pathway.

Many Indian nationals come to Australia on student visas (subclass 500), complete qualifications, apply for a Graduate visa (subclass 485), gain work experience, and then transition to a skilled visa. This pathway takes several years but provides Australian qualifications and local experience, which strengthen points-test scores and employer interest.

English language requirements.

Most skilled visas require at least Competent English. For the points test, higher English scores (Proficient or Superior) add significant points ^[3]. Accepted tests include IELTS Academic, PTE Academic, and others approved by the Department of Home Affairs.

Banking and Finances

Opening an Australian bank account.

The Big Four banks (Commonwealth Bank, Westpac, ANZ, NAB) allow you to open an account online before arriving, using your passport. Within six weeks of arrival, identity verification requires only your passport. After six weeks, you need additional Australian ID (Medicare card, driver's licence). Open your account before departure from India.

Indian bank accounts.

When you become an NRI, you must convert your resident savings accounts to NRO (Non-Resident Ordinary) accounts. You can also open NRE (Non-Resident External) accounts for parking foreign earnings, which are fully repatriable and tax-exempt in India. Maintaining NRO and NRE accounts is important for managing Indian assets, receiving rental income, and eventual repatriation of funds.

Remittances to India.

Services like Wise, Remitly, and bank wire transfers handle AUD-to-INR conversions. Compare exchange rates and fees, as the difference between services can be significant on large transfers. RBI's Liberalised Remittance Scheme (LRS) governs inward remittances and does not restrict receiving foreign currency in NRE/NRO accounts.

Superannuation.

Your Australian employer contributes a mandatory percentage of your salary to a super fund. You choose your fund or default to the employer's nominated fund. Super is a long-term retirement savings vehicle. If you leave Australia permanently before retirement age, you can claim your super as a Departing Australia Superannuation Payment, minus withholding tax.

Indian investments and reporting.

As an Australian tax resident, you must report worldwide income on your Australian return, including interest from Indian bank accounts, dividends from Indian shares, and rental income from Indian property. Australia's foreign income tax offset prevents double taxation where you have already paid Indian tax.

Cost of living.

Sydney and Melbourne are significantly more expensive than most Indian cities. Housing costs are the largest expense: a one-bedroom apartment in central Sydney rents for AUD 2,500-3,500/month. Melbourne is 10-20% cheaper. Brisbane, Perth, and Adelaide offer more moderate costs. Groceries, particularly fresh produce and dairy, are more expensive than in India. Indian grocery stores are widely available in suburbs with large Indian communities.

Moving Logistics

Flights.

Direct flights from major Indian cities (Delhi, Mumbai, Bengaluru, Hyderabad, Chennai) to Sydney and Melbourne are available on carriers including Air India, Qantas, and IndiGo. Flight time is 10-14 hours depending on the route. One-stop options via Singapore, Kuala Lumpur, or Bangkok are often cheaper.

Shipping household goods.

A 20-foot container from India to Australia costs approximately USD 3,000-6,000 for sea freight. Door-to-door service (packing, customs clearance, delivery) adds USD 2,000-4,000. Transit time by sea is 3-5 weeks depending on the port. Air freight for essentials costs USD 5-10 per kilogram and arrives in 5-10 days.

Customs and biosecurity.

Personal and household effects owned and used for 12+ months before arrival enter duty-free. Australia's biosecurity laws are extremely strict: no food, spices in original packaging (commercially sealed spice containers may be inspected and sometimes permitted, but loose spices will be confiscated), plant material, untreated wood, animal products, or soil. Declare everything. Fines for undeclared restricted items are severe.

Electrical appliances.

India uses 230V/50Hz electricity, and Australia uses 230V/50Hz. The voltage and frequency are compatible, so your Indian appliances will work with a plug adapter (India uses Type C/D/M plugs, Australia uses Type I). No voltage converter is needed.

Driving.

India drives on the left, same as Australia. Your Indian driving licence is valid for 3-6 months depending on the state/territory. After that, you must obtain an Australian licence. Some states require a practical driving test. Australian road rules differ from Indian norms in enforcement levels, speed limits, and expectations around lane discipline and roundabout navigation.

Pets.

Australia has some of the strictest animal import rules in the world. Dogs and cats need at least 180 days of preparation (rabies vaccination, titer test, parasite treatments) and a mandatory 10-day quarantine at the Mickleham facility in Melbourne. India is classified as a Group 3 country for Australian biosecurity purposes, which requires additional testing. The process takes 7-9 months and costs USD 2,000-5,000. No birds, reptiles, or exotic animals are permitted.

Cultural Adjustment

Indian communities in Australia.

India is one of the largest source countries for migration to Australia, and Indian communities are well-established in every major city. Suburbs like Harris Park and Parramatta (Sydney), Dandenong and Truganina (Melbourne), and areas around major universities have large Indian populations with grocery stores, restaurants, temples, gurdwaras, and community organizations.

Workplace culture.

Australian workplaces are less hierarchical than most Indian workplaces. Addressing managers and executives by first name is standard. Direct communication is valued. "Tall poppy syndrome" means self-promotion is viewed negatively. Work-life balance is a genuine priority: four weeks of annual leave is the legal minimum, and people take it. Overtime is compensated, not expected as a sign of dedication.

English language.

English is the working language, and Indian professionals generally have strong English skills. Australian English includes distinctive vocabulary (arvo, brekkie, barbie) and slang that takes a few weeks to parse. The accent is different from Indian English, and communication styles are more informal than in Indian professional settings.

Food.

Indian groceries (spices, lentils, rice varieties, flours, pickles, papadums) are widely available in Indian grocery stores and increasingly in mainstream supermarkets (Woolworths, Coles). Vegetarian options at Australian restaurants have expanded but are not as varied as in India. Indian restaurants are present in every Australian city, ranging from budget to fine dining.

Weather.

Most Indian migrants settle in Sydney, Melbourne, or Brisbane. Sydney's climate is warm and mild year-round. Melbourne has more variable weather with cooler winters. Neither city approaches the heat levels of northern India in summer, but UV radiation in Australia is intense. Sunscreen and sun protection are daily necessities.

Education.

Australian public schools are free and generally high quality. Private schools charge fees ranging from AUD 5,000 to AUD 40,000+ per year depending on the school. Indian qualifications are recognized for university admission, though some courses require NAATI or professional body assessment. Australian universities are well-regarded globally, and many Indian families factor children's education into their migration decision.

Compare Australia

Visa guides for Australia