Moving to Australia from UK 2026 -- Finance, Tax & Superannuation Guide

Last reviewed: 26 April 2026

Australia remains one of the most popular emigration destinations for British nationals -- combining familiar legal and cultural institutions with a strong economy, high wages, and a quality of life consistently ranked among the world's highest. Moving to Australia from the UK requires navigating the Australian points-based immigration system administered by the Department of Home Affairs, the Australian Tax Office (ATO) residency tests, the superannuation system, and QROPS transfer rules that have become significantly more restrictive since 2017. This guide covers every material step: visa routes and the current points pass mark, ATO tax residency and the 183-day test, superannuation (including the 12% Guarantee from July 2025), QROPS constraints, Medicare, banking, and GBP-AUD transfer.

Australian Visa Routes for British Nationals in 2026

The Skilled Independent visa (subclass 189) is the premier permanent residence route for most British professionals. It requires an Expression of Interest (EOI) in SkillSelect and an invitation to apply in a periodic draw. The points pass mark in 2025 and early 2026 invitation rounds ranged from 70 to 85 points depending on occupation and state. Points accrue from age (maximum 30 for applicants aged 25--32), English language ability (maximum 20 for Superior IELTS/PTE), skilled employment (maximum 20 for 8+ years), Australian study, partner skills, professional year, and other factors. Skills must be assessed by the relevant assessing authority before the EOI is lodged.

The Employer-Nominated Scheme (subclass 482 Temporary Skills Shortage, leading to 186 permanent) allows an Australian employer to sponsor a skilled worker. The TSS 482 visa has a maximum stay of 2 or 4 years depending on the stream, with a pathway to permanent 186 nomination after 3 years in most Medium-to-Long-Term Strategic Skills List occupations. The Partner visa (subclass 309/820 temporary, 100/801 permanent) is available to partners of Australian citizens or permanent residents. The Working Holiday visa (subclass 417) is available to British nationals aged 18--35, allowing up to 12 months' work per employer in any sector, extendable to a second and third year by completing regional work.

The Parent visa (subclass 143 contributory permanent) typically involves waiting periods of several years and fees of approximately AUD 47,000 per applicant. Applications are registered with the Department of Home Affairs via gov.uk Australia guidance.

Australian Tax Residency and the ATO Tests

The ATO applies four residency tests. The 183-day test deems an individual Australian-resident for tax purposes if they are actually present in Australia for 183 days or more in a tax year (1 July to 30 June), unless their usual place of abode is outside Australia and they have no intention of taking up residence. The domicile test deems an individual resident if their domicile is in Australia, unless their permanent place of abode is outside Australia. The Commonwealth superannuation test applies to certain government employees.

Australian tax residents pay income tax on worldwide income. The 2026/27 tax-free threshold is AUD 18,200. Rates are 19% on AUD 18,201--AUD 45,000, 32.5% on AUD 45,001--AUD 120,000, 37% on AUD 120,001--AUD 180,000, and 45% on income above AUD 180,000, plus the Medicare levy of 2%. Non-residents pay 32.5% from the first dollar of Australian-source income, with no tax-free threshold. Verify current rates against the OECD Australia tax profile.

British nationals must also manage UK departure under the Statutory Residence Test. Australia is in the frozen State Pension category -- UK State Pension paid to Australian residents does not increase each year, meaning it is frozen at the rate in payment when you first become resident in Australia (or at the 2026/27 rate of approximately £221.20 per week if you are newly departing). See our UK Pension Abroad 2026 guide for the full frozen vs uprated country list.

Superannuation: The 12% Guarantee from July 2025

Australia's Superannuation Guarantee -- the mandatory employer contribution to an employee's superannuation fund -- reached 12% from 1 July 2025, up from 11.5% in the 2024/25 financial year. This means employers must contribute 12% of an employee's ordinary time earnings into a complying super fund each quarter. Employees can also make voluntary concessional (pre-tax) contributions up to the AUD 30,000 annual concessional cap for 2025/26 (indexed to AWOTE, rising slightly in 2026/27).

Super funds are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). The fund type chosen -- industry fund (e.g. Australian Super, HESTA), retail fund (e.g. AMP, BT), or self-managed super fund (SMSF) -- will affect fees, investment options, and insurance cover. Australian Super and REST are the two largest default industry funds by membership. A Tax File Number (TFN) must be provided to the super fund to avoid the highest withholding tax rate on contributions.

On permanently leaving Australia, a Working Holiday Maker (subclass 417 or 462) can claim a Departing Australia Superannuation Payment (DASP). DASP is taxed at 65% for WHM visa holders (increased from 38% in July 2017 for this visa category) -- this is a one-way exit. Permanent residents who later emigrate cannot claim DASP until reaching Australian preservation age (60--65 depending on birth year).

QROPS: Why Australian Transfers Are Rarely Viable in 2026

HMRC's Qualifying Recognised Overseas Pension Scheme (QROPS) list is updated twice monthly. As of April 2026, only two Australian schemes appear on the HMRC QROPS list: the Australian Expatriate Superannuation Fund and one further Australian Recognised Expert Pension Fund. This represents a dramatic reduction from the hundreds of Australian QROPS that existed before the March 2017 QROPS reforms introduced the 25% Overseas Transfer Charge (OTC).

The 25% OTC applies to any transfer to a QROPS unless one of three exemptions applies: (1) the scheme is in the same country as the member's residence; (2) the scheme and member are both in EEA countries; (3) the transfer is an employer-related scheme transfer. For a British national moving to Australia and seeking to transfer a UK SIPP to an Australian QROPS, exemption (1) would apply -- but only if the individual is already resident in Australia at the time of transfer, confirmed by HMRC. Any transfer made before Australian residence is established incurs the 25% OTC. Verify the current HMRC QROPS list at gov.uk QROPS list.

For most British nationals moving to Australia, leaving a UK SIPP in place with a UK provider that accepts non-resident members (AJ Bell, Hargreaves Lansdown, Interactive Investor) is typically more cost-effective than a QROPS transfer, especially given Australian super's preservation age rules and the complexity of re-contribution strategies. See our UK Pension Abroad 2026 guide for the full SIPP vs QROPS analysis.

Medicare, Healthcare, and the UK Reciprocal Agreement

The UK and Australia have a reciprocal healthcare agreement, confirmed at gov.uk/guidance/healthcare-in-australia. UK nationals who are Australian residents (on any visa) are entitled to medically necessary treatment under Medicare, including GP visits, public hospital treatment as a public patient, and some specialist referrals. Elective surgery and dental care are not covered. To enrol, visit Medicare Australia (Services Australia) with your passport and visa.

Medicare does not cover private hospital treatment, ambulance services in most states, or physiotherapy. Private health insurance -- covering private hospital and extras (dental, optical, physiotherapy) -- is strongly recommended once you have been resident for a waiting period. For UK nationals who are not yet Medicare-eligible (e.g. during a WHM year before establishing residency), international IPMI cover is required. See our UK Expat Health Insurance 2026 guide.

Banking and GBP-AUD Transfers

The main retail banks in Australia are Commonwealth Bank (CBA), NAB, ANZ, and Westpac -- collectively the "Big Four". All offer online account opening for newly arrived residents with a passport and visa; a proof of address or letter of arrival is typically required within 90 days. An Australian Tax File Number (TFN) application should be made to the ATO online as soon as you have your visa -- it is used for employment, banking, and super contributions.

For GBP-AUD transfers, Wise consistently offers the closest to the mid-market rate at approximately 0.35--1.0% margin, compared with 1.5--3% at Australian bank international transfer services. Large one-time transfers (e.g. proceeds from a UK property sale) may benefit from a forward contract with a specialist FX broker to lock in an AUD rate. For ongoing management of UK accounts alongside Australian accounts, see our Best Expat Bank Accounts UK 2026 guide -- HSBC Expat and Lloyds International remain accessible from Australia without a UK address.

This article is for general information only and does not constitute tax, legal, financial or immigration advice. Rules and rates change; verify with the primary sources cited or consult a qualified adviser before acting.

FAQ

What is the current points pass mark for the Australian 189 visa?

The Skilled Independent 189 visa invitation rounds in 2025 and early 2026 had pass marks of 70--85 points depending on the occupation and the round. There is no fixed pass mark -- it fluctuates with the number of EOIs in the pool and the annual migration programme settings. Submit your EOI as soon as your skills are assessed.

Can I transfer my UK pension to an Australian super fund?

Only to one of the two schemes on the HMRC QROPS list as of April 2026, and only after you are established as an Australian resident -- otherwise the 25% Overseas Transfer Charge applies. For most people, leaving the UK pension in a UK SIPP with a non-resident-friendly provider is more cost-effective. Take specialist advice before initiating any transfer.

Is Australian State Pension affected by moving from the UK?

Australia is a frozen State Pension country. Your UK State Pension is paid at the rate current when you establish Australian residence and does not increase with annual triple lock uplifts. Any periods of Australian working life may also affect entitlement to Australia's own Age Pension, subject to the bilateral social security agreement.

Does Medicare cover me as a British national in Australia?

Yes, under the UK-Australia reciprocal healthcare agreement, British nationals resident in Australia can access medically necessary treatment through Medicare. This includes GP visits and public hospital treatment. It does not cover private hospital, dental, optical, or elective procedures. Enrol at a Services Australia Medicare service centre.

When should I apply for an Australian Tax File Number?

Apply online through the ATO as soon as you have your visa and an Australian address. It typically arrives within 28 days. Without a TFN, your bank will withhold tax on interest at the top marginal rate (47%), and your employer will withhold PAYG at the top rate. Your super fund will also withhold additional tax on contributions without a TFN.

What is the Superannuation Guarantee rate in 2026?

12% from 1 July 2025 -- the final step in the scheduled increases from 9.5% that began in 2021. Employers must contribute 12% of ordinary time earnings each quarter to a complying super fund. Employees can additionally make voluntary concessional contributions up to the AUD 30,000 annual cap.

Sources

1. gov.uk -- Australia Travel Advice and Living Abroad Guidance (verified 26 April 2026)
2. gov.uk -- Healthcare in Australia (Medicare reciprocal agreement) (verified 26 April 2026)
3. HMRC -- QROPS Notification List (verified 26 April 2026)
4. OECD -- Australia Tax Profile (verified 26 April 2026)
5. HMRC -- RDR1 Residence, Domicile and the Remittance Basis (verified 26 April 2026)
6. ABI -- International Health Insurance Guidance (IPMI for non-reciprocal countries) (verified 26 April 2026)