Thinking about retiring to Australia? With its warm climate, strong healthcare system and relaxed way of life, it’s no surprise that many UK residents have their sights set on life down under.
But moving across the world comes with its fair share of planning. This article will walk you through the process of retiring to Australia from the UK, including visas, tax and financial considerations and a few of the best places to live. Any information in this article is for informational purposes only and subject to change. For the most up-to-date information on retiring to Australia from the UK, you should consult the Australian Government website.
Why retire to Australia? Pros and cons
Retiring in Australia can be a great option for many UK residents, but it’s worth weighing up both the benefits and the potential drawbacks:
| Pros | Cons |
Warm climate and outdoor lifestyle | Cost of living can be high, especially in major cities |
High-quality healthcare system | Limited and sometimes expensive visa options for retirees |
Large expat communities and support networks (making it easier to settle) | Distance from family and friends back in the UK |
Strong infrastructure and public services | Tax rules and healthcare access can vary depending on visa type |
Can UK residents retire to Australia?
Yes, a UK resident can retire to Australia, but the requirements are a bit more complex than simply booking a one-way ticket. There isn’t a dedicated retirement visa for UK citizens anymore, as Australia’s ‘Investor Retirement Visa’ (subclass 405)1 and ‘Retirement Visa’ (subclass 410)2 have been closed to new applicants.
Visa and immigration criteria for retiring to Australia
- Parent Visas (Contributory or Non-Contributory): If your child is an Australian citizen or permanent resident, this might be your most direct route. However, it’s important to note that the contributory parent visa can be expensive (upwards of AUD $48,000) but typically has shorter processing times.3
- Investor Visas: If you have large assets, the investor visa might be a feasible (but high-threshold) option. You will need to have held an investment of AUD 1.5 million for 4 years.4
- Tourist Visas for Long Stays: Some retirees opt to live in Australia for up to 12 months at a time under a long-stay visitor visa, although this doesn’t allow for permanent settlement or access to healthcare.5
Permanent residency vs. temporary stay: what’s best for UK retirees?
The Australian Government has made it possible for eligible retirees to obtain permanent residency through the Retirement Visa Pathway, introduced in 2018. This pathway is available to long-term residents who previously held a Retirement visa (subclass 410) or an Investor Retirement visa (subclass 405) and have contributed to the community.6
If eligible, you can access the pathway by applying for either the:
- Parent visa (subclass 103)
- Contributory Parent visa (subclass 143)
If you’re planning to settle in Australia long-term, applying for permanent residency may offer more stability and access to services like Medicare. However, some UK retirees choose to stay temporarily on long visitor visas, especially if they’re not yet ready to commit full-time or don’t meet the eligibility criteria for the retirement pathway.
The right path will depend on your goals, financial position and whether you have family already living in Australia.
How much money do I need to retire to Australia? Financial planning & costs
Each visa has its own financial thresholds. You’ll generally need to prove you can support yourself without relying on the Australian welfare system. This may involve demonstrating sufficient pension income, savings or investment returns.
How much money you’ll need to retire in Australia will depend on your personal circumstances and lifestyle needs. As a rule of thumb, the Association of Superannuation Funds of Australia (ASFA) estimates a ‘comfortable’ retirement for a couple costs around AUD $70,000per year.7
What happens to my UK state pension if I emigrate to Australia?
You can still receive your UK State Pension while living in Australia. However, unlike retirees in EEA (European Economic Area) countries, your pension won’t increase annually because Australia is not part of the UK’s ‘uprating’ agreement.8 Essentially, this means the amount you receive will be frozen at the rate it was when you first claimed it abroad.
To manage this, many retirees consider transferring their pension to a Qualifying Recognised Overseas Pension Scheme (QROPS),9 although this can have tax implications and isn’t suitable for everyone.
Australian tax considerations for UK retirees
Australia taxes residents on their worldwide income. If you’re classed as a tax resident (which depends on your visa type, duration of stay, and ties to Australia), you may need to pay tax on your UK pension income in Australia.
Fortunately, the UK and Australia have a double taxation agreement,10 which helps ensure you won’t be taxed twice on the same income. That said, you may want to consult with a cross-border tax advisor as this area can be complex.
Managing assets: buying property & moving finances
Whether you’re buying a home or transferring your pension, managing your money effectively is a key part of retiring abroad. It’s worth reviewing exchange rate strategies and international transfer options, especially if you plan to move large sums of money between the UK and Australia over time.
Can you buy property in Australia as a UK citizen?
UK citizens can buy property in Australia, but you’ll need permission from the Australian Taxation Office if you’re not a permanent resident.11 Typically, you’re allowed to buy:
- New-build properties
- Vacant land (as long as you build within four years)
- An established dwelling (if you’re applying to live in it and plan to demolish and rebuild)
Buying property doesn’t automatically give you the right to live in Australia, so you will likely want to align property plans with your visa status.
Estate planning & inheritance laws for UK expats
Estate planning might not be the first thing on your mind, but it’s important to understand how your assets will be treated across borders, especially if you have property or investments in both the UK and Australia.
In Australia, inheritance laws and taxes differ from the UK. For example, Australia doesn’t have an inheritance tax, but capital gains tax may apply when assets are passed on.12 It’s a good idea to:
- Review or update your will so it reflects your wishes in both countries
- Check your power of attorney and healthcare directives, particularly if you’re living abroad long-term
- Speak with a cross-border legal adviser or estate planning expert
Getting this in place early can provide peace of mind for you and your family in the future.
Best places to retire in Australia: top destinations for UK expats
Looking for laid-back beach towns or vibrant city life? Here are some of the most popular spots to retire in Australia among UK expats:
Sunshine Coast (Queensland)
If your idea of retirement includes morning walks on the beach and a warm climate year-round, the Sunshine Coast might be for you. With excellent public and private healthcare facilities, a growing expat community, and a laid-back atmosphere, this coastal stretch offers a great balance between lifestyle and liveability.
Adelaide (South Australia)
Often overlooked in favour of Sydney or Melbourne, Adelaide is a hidden gem for retirees. Cost of living in Adelaide can be lower, and it’s generally a slower pace of life that appeals to those looking to escape the hustle. Known for its food and wine culture, it’s a great choice if you enjoy weekend markets and scenic countryside drives.
Hobart (Tasmania)
Nestled between mountains and the sea, Tasmania’s capital, Hobart, offers natural landscape, a thriving arts scene and less congestion than mainland cities. Property prices are generally more affordable, and the slower lifestyle makes it especially appealing for retirees looking for peace and quiet.
Perth (Western Australia)
Perth is a mix of warm weather with modern city amenities. While it’s more isolated geographically, it’s self-sufficient in terms of healthcare, shopping and services. The Swan River, beautiful beaches and nearby wine regions add to its appeal, making it ideal for retirees who want space without sacrificing quality of life.
Byron Bay (New South Wales)
A longtime favourite for creatives and wellness seekers, Byron Bay has a relaxed coastal vibe and an emphasis on community and sustainability. It’s one of the pricier locations in terms of property, but for those who prioritise lifestyle and don’t mind paying a premium, it remains an ideal retirement spot.
Adjusting to life in Australia: culture, community & lifestyle
Retiring abroad means embracing new routines and cultural quirks. While Australians speak English, their slang and laid-back attitude may take some getting used to. Social clubs, sports and volunteering are great ways to build community.
Where to find support & information for UK retirees in Australia
There are plenty of resources to support UK retirees, including:
- Expat forums and Facebook groups
- The British Expat Association of Australia
- Local U3A (University of the Third Age) chapters
Retiring to Australia from the UK is entirely possible, but it takes planning, especially when it comes to finances, healthcare and legal requirements. Whether you’re applying for a parent visa or planning to stay long-term on a tourist route, the more informed your decisions, the smoother your experience will be.
Lumon: Helping make your retirement in Australia simple
At Lumon, we specialise in the currency side of your retirement, helping you move your money to Australia, ensuring your retirement plans stay on track.
Our service is designed around your currency needs, offering expert market insights and competitive, bank-beating exchange rates to help you get more from every transfer.
When it’s time to move your money, you’re in full control:
Set up automated regular payments: With just a quick call, we can arrange a fully automated Regular Payment Plan, ensuring your pension or other recurring payments reach Australia reliably, on time, and with minimal effort on your part.
Manage payments yourself online: Prefer to stay hands-on? Open your online account in minutes and send money to Australia whenever it suits you, all with access to great exchange rates and complete flexibility.
Dedicated personal support: You’ll have your own dedicated currency specialist, ready to offer tailored advice, market insights, and help you make the most of your transfers whenever you need support.
Sources used:
- Australian Government – Investor Retirement visa (subclass 405)
- Australian Government – Retirement visa (subclass 410)
- Australian Government – Parent Contributory Visa (subclass 143)
- Australian Government – Investor visa (subclass 891)
- Australian Government – eVisa Overview
- Australian Government – Permanent Residency
- ASFA – ASFA Retirement Standard
- UK Government – State Pension Guidance
- UK Government – Transferring Your Pension
- UK Government – Tax on your UK income if you live abroad
- Australian Government – Apply to buy residential property as a foreign person
- Tax Law and Policy Research Group, University of Melbourne – Whatever happened to Australia’s inheritance taxes?
- Australian Government – Reciprocal Health Care Agreements – Visiting from the UK
Sources last checked on: 30.04.2025
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
