Why People Regret Moving to Australia: Downsides [2026] – Rent, Prices, Health Care and Visa Costs

The four things people most often regret about moving to Australia are high rents and a shortage of available properties, a cost of living pushed up by the weak yen, being unable to join Medicare (the public health insurance system) on a temporary visa, and visa fees and conditions that get tougher every year. Advertised rents in Sydney average about A$910 a week (roughly A$3,940 a month), and vacancy rates are in the 1% range. The Australian dollar went from about JPY 80.5 in October 2021 to about JPY 110.2 in October 2026, an increase of around 1.4 times in yen terms. Japan has no reciprocal health care agreement with Australia, so Japanese nationals generally need private health insurance until they obtain permanent residence. On the other hand, the minimum wage is high at A$26.44 an hour, so for people who work and earn locally, Australia is a country where higher wages can offset the high cost of living. About 106,000 Japanese nationals live there, more than 60% of them as permanent residents. If you understand the downsides in numbers and settle your job, housing and insurance first, you can avoid most regrets.

*Amounts and rules are as of October 9, 2026. This article is an English version of our Japanese guide, adapted for foreign residents of Japan and international investors. Monthly rents are calculated as weekly rent × 52 ÷ 12.

For an overview of moving to Australia and a list of related articles, see Moving to Australia and Requirements for Permanent Residence.

Conclusion: common regrets about moving to Australia and how to prepare

Many Japanese nationals still choose to stay in Australia because wages are high and, once you have permanent residence, you can access health care and education on the same terms as citizens. From July 2026 the minimum wage is A$26.44 an hour, or A$1,004.90 a week, and average full-time weekly earnings are A$2,083.70 (May 2026). Living only on a yen pension or yen assets is difficult; Australia suits people who work locally and earn in Australian dollars. We compare the routes to moving there in Moving to Australia and Requirements for Permanent Residence.

Rent: about A$3,940 a month in Sydney, vacancy rates in the 1% range

Rent is the first hurdle most people face when moving to Australia. According to SQM Research, advertised rents (houses and units combined) for the 30 days to September 4, 2026 were as follows.

The national vacancy rate is 1.3%, and only 0.6% in Perth and Adelaide. With so few vacancies, your application may simply not be chosen, and right after arrival, when you have no rental history or proof of local income in Australia, you are at a disadvantage in tenant screening.

Advertised rents in the major cities are rising by 3–8% a year, and the property website Domain reported that the median advertised rent for houses in Sydney hit a record A$850 a week (June 2026 quarter; because the methodology and coverage differ, this does not match the SQM Research figures in the table above). When you first arrive, a realistic approach is to live in a furnished short-term rental or shared house while you decide on your job and where to live.

Prices and the weak yen: the Australian dollar up about 1.4 times in five years, electricity up 13% in a year

According to the Australian Bureau of Statistics, consumer prices in August 2026 rose 4.0% from the same month a year earlier. By category, electricity rose 13.2% (mainly due to the end of government electricity bill relief), meals out and takeaway 4.1%, and food 3.0%.

For people living on yen, the exchange rate has an even bigger impact. Based on mid-rates published by Mitsubishi UFJ Research and Consulting, A$1 was about JPY 80.54 on October 1, 2021, and about JPY 110.17 on October 9, 2026. That is about 1.37 times, meaning the same A$3,000 a month in living costs went from about JPY 242,000 to about JPY 331,000 in yen terms.

If you live by drawing down a Japanese pension or yen assets, your living costs keep rising as the yen weakens. Since the Investor Retirement visa (subclass 405) closed to new applications in June 2018, Australia is also a hard country to plan a move to without working locally.

Health care: no Medicare on a temporary visa

Australia's public health insurance system, Medicare, covers citizens and permanent residents. Australia has reciprocal agreements with 11 countries, including the UK and New Zealand, whose nationals can use part of Medicare during a temporary stay, but Japan is not one of them.

So while you live in Australia on a student visa, a Temporary Graduate visa (485), an employer-sponsored visa (482) or similar, you must keep private health insurance in line with visa condition 8501 (maintain adequate health insurance during your stay). Health insurance policies have waiting periods and excluded treatments, so if you have a pre-existing condition or are planning a birth, check before you sign up.

Even after you obtain permanent residence and join Medicare, there are waiting times for elective surgery at public hospitals. In 2024–25 the median wait for elective surgery was 45 days, and 6.0% of patients waited more than a year (Australian Institute of Health and Welfare). In addition, people above a certain income who do not have private hospital cover pay an extra 1–1.5% (the Medicare Levy Surcharge) on top of the 2% Medicare levy (for singles with income above A$105,000 a year).

Tax: income tax up to 45%, Japanese pensions taxed in Australia

Income tax rates for Australian tax residents (2026–27) are as follows. The 2% Medicare levy is charged separately.

On the other hand, in addition to employees' salaries, employers are required to contribute 12% of salary to a retirement fund (superannuation).

If you live in Australia while receiving a Japanese pension, under the Japan–Australia tax treaty, pensions such as the Employees' Pension and National Pension are taxed in the country of residence (Australia) (pensions based on government service are, in principle, taxed in Japan). If you submit the "Application Form for Income Tax Convention" to the Japan Pension Service, Japanese withholding tax is exempted. Under the Japan–Australia Social Security Agreement (in force since 2009), you may also be able to combine pension coverage periods in both countries. We explain how pensions are treated in each country in Can You Retire Abroad on a Japanese Pension?, and the tax and resident registration procedures before leaving Japan in Taxes and Resident Registration When Moving Abroad.

Visas: sharply higher fees and limits on family members of student visa holders

From July 1, 2026, Australian visa application fees rose by about 25%.

The Temporary Graduate visa (485) went from A$2,300 to A$4,600 in March 2026 and then to A$5,750 in July, about 2.5 times in half a year.

The 2026–27 permanent migration program is 185,000 places, the same as the previous year, but its make-up has changed. The employer-sponsored stream rose from 44,000 to 58,040 places and Skilled Independent (189) from 16,900 to 21,090, while the regional stream fell from 33,000 to 14,110. People already in Australia are also prioritised, with only about 55,000 places for offshore applicants. This makes things harder for people aiming for skilled migration directly from Japan. The government has also signalled a review of the points test, but as of October 2026 the details have not been decided.

In addition, from October 2, 2026, new Student visa (500) applications generally can no longer include a spouse or children (with exceptions such as doctoral students). Plans to "study in Australia as a family and then aim for permanent residence" have become harder than before. We explain how easy it is to get permanent residence by occupation in Australia's Occupation Lists for Permanent Residence.

Housing: foreigners cannot buy established homes until March 2027

For two years, from April 1, 2025 to March 31, 2027, the Australian government is in principle banning foreign persons (including temporary visa holders) from buying established (existing) homes. There are exceptions, such as redevelopment that increases housing supply. Even before this, application fees for foreigners buying established homes and charges on foreign-owned homes left vacant had already been raised.

Once you have permanent residence, these restrictions no longer apply. The realistic approach is to assume you will rent until you obtain permanent residence and to consider buying a home after that.

Daily life: UV, skin cancer and the distance from Japan

According to Cancer Council Australia, Australia has the highest skin cancer rate in the world, and two in three Australians will be diagnosed with skin cancer in their lifetime. The sun is strong, so sunscreen, a hat and sunglasses are everyday necessities.

Sydney and Melbourne are one hour ahead of Japan (two hours during daylight saving time from October to April), and Perth is one hour behind Japan. With such a small time difference, it is easy to keep working with Japan and stay in touch with family. However, the flight takes about 9–10 hours, so it is not close enough for casual trips back.

There are many Japanese nationals in Australia: according to Japan's Ministry of Foreign Affairs, 105,566 Japanese nationals lived there as of October 1, 2025, the second-largest number after the United States. Of these, 65,085 are permanent residents, so many Japanese have put down roots there.

Frequently asked questions

Why do so many people regret moving to Australia?

Because high rents and prices, the weak yen, medical costs while you cannot join Medicare, and expensive, strict visa conditions all add up. The burden is especially heavy if you try to live only on yen assets. How comfortable life is depends greatly on whether you can work locally and earn in Australian dollars.

How much do I need a month to live in Australia?

Rent alone is about A$3,900 a month in Sydney and about A$2,800 a month even in Adelaide (advertised rents for the 30 days to September 4, 2026). Food, utilities, transport and health insurance come on top of that. Choosing shared housing or the suburbs lowers rent.

What happens to my Japanese pension in Australia?

You can still receive a Japanese pension while living in Australia. Under the Japan–Australia tax treaty, it is taxed in Australia. If you submit the tax treaty form to the Japan Pension Service, Japanese withholding tax is exempted.

Do I need health insurance in Australia?

In principle, yes, until you obtain permanent residence (some people, such as those who have applied for a permanent visa onshore, can join Medicare). Because Japan is not covered by a Medicare reciprocal agreement, while you live there on a temporary visa you must keep private health insurance that meets your visa conditions.

Is permanent residence easy to get?

It depends heavily on your occupation and age. In the June 2026 invitation round for Skilled Independent (189), construction trades were invited at the minimum score of 65 points, while accountants and software engineers were not invited, and in IT only some occupations were invited, at 95 points. For details, see Australia's Occupation Lists for Permanent Residence.

Summary

• The main downsides of moving to Australia are rent (about A$3,940 a month in Sydney, vacancy rates in the 1% range), the weak yen and prices (the Australian dollar up about 1.4 times in five years), health care while you cannot join Medicare, and expensive, strict visa conditions
• Japan is not covered by a Medicare reciprocal agreement. Private health insurance is generally required until you obtain permanent residence
• Visa application fees rose by about 25% from July 2026, and from October new student visa applications generally cannot include family members
• Foreigners cannot buy established homes until March 2027
• The minimum wage is high at A$26.44 an hour, so for people who work and earn locally, Australia can offset its high cost of living

Related articles: Moving to Australia and Requirements for Permanent Residence / Australia's Occupation Lists for Permanent Residence / Best Countries to Move Abroad

References (primary sources)

• Property Investment Professionals: SQM Research vacancy rates and advertised rents for August 2026 (September 15, 2026)
• MPA: Domain rent report for the June 2026 quarter (July 10, 2026)
• Australian Bureau of Statistics: Consumer Price Index, August 2026 (September 30, 2026)
• Australian Bureau of Statistics: Average weekly earnings (August 13, 2026)
• CGW: Minimum wage from July 1, 2026
• AHC Lawyers: Medicare reciprocal agreements and visa condition 8501
• Australian Institute of Health and Welfare: Elective surgery waiting times (December 10, 2025)
• Australian Taxation Office: Tax rates for Australian residents
• Australian Taxation Office: Medicare Levy Surcharge
• Australian Taxation Office: Superannuation guarantee rate
• Ministry of Foreign Affairs of Japan: Japan–Australia tax treaty (English)
• Work Visa Lawyers: Visa application fees for 2026–27
• Baker McKenzie: Migration and education reforms in the May 2026 Budget
• Department of Home Affairs: Changes to student visa applications (from October 2, 2026)
• Holding Redlich: Ban on foreign purchases of established homes (from April 1, 2025)
• Cancer Council Australia: Skin cancer data (August 21, 2026)
• Ministry of Foreign Affairs of Japan: Annual Report of Statistics on Japanese Nationals Overseas (as of October 1, 2025)
• Mitsubishi UFJ Research and Consulting: Exchange rates on October 9, 2026
• Mitsubishi UFJ Research and Consulting: Exchange rates on October 1, 2021

Amounts and rules in this article are as of October 9, 2026.