Relocating to Melbourne on an AUD 150,000 tech salary puts you comfortably above the city’s average income, but not in the “money is no object” bracket. After tax you will take home roughly AUD 9,200 a month, and how far that goes depends mostly on two choices: where you rent, and how you handle health cover as a temporary visa holder.
This guide is written for software engineers, data specialists, product managers and other tech professionals who have an offer, or expect one, in Melbourne. It covers the tax on AUD 150,000, superannuation, rent by suburb, Medicare eligibility versus overseas visitor health cover (OVHC), banking, commuting and the first-month checklist. Figures are in Australian dollars and are ranges at the time of writing. This is general information, not tax or financial advice.
How much tax will you pay on $150,000 in Australia?
Australia taxes residents on a progressive federal scale, with no state income tax. Using the resident rates for the 2026–27 tax year, a salary of AUD 150,000 works out approximately as follows.
| Item | Approximate amount (AUD) |
|---|---|
| Gross salary (excluding super) | 150,000 |
| Income tax | 36,570 |
| Medicare levy (2%) | 3,000 |
| Take-home per year | 110,430 |
| Take-home per month | About 9,200 |
| Take-home per fortnight | About 4,250 |
Most Melbourne employers pay fortnightly or monthly and withhold tax automatically. Check your own numbers with the calculators on ato.gov.au, and note three points that matter for new arrivals:
- Tax residency: if you move to Melbourne to live and work on a multi-year visa, you will normally be an Australian tax resident from arrival, which gives you the tax-free threshold. In your first part-year it is pro-rated.
- Temporary resident status: holders of temporary visas are generally not taxed in Australia on most foreign investment income, such as overseas dividends or rent. Your home country may still tax it.
- Medicare levy exemption: if you are not eligible for Medicare, you can apply to Services Australia for a Medicare Entitlement Statement and claim an exemption from the 2 per cent levy in your tax return, worth about AUD 3,000 a year at this salary.
Is your $150,000 including or excluding super?
Ask this before you sign. Employers must pay the superannuation guarantee of 12 per cent into your retirement fund. If the offer is “AUD 150,000 plus super”, you receive about AUD 18,000 on top. If it is “AUD 150,000 package including super”, your taxable base salary is only about AUD 134,000, and your take-home falls to roughly AUD 8,400 a month.
The same question affects your visa. The Skills in Demand visa’s Specialist Skills stream requires earnings above a threshold (AUD 141,210 from July 2025, indexed each July) that excludes super, so an inclusive AUD 150,000 package may not qualify. Our guide on how to relocate to Australia for high-paying jobs explains the streams.
You can choose your own super fund, and if you later leave Australia permanently on a temporary visa you can claim the balance, although it is taxed at a high rate.
Where should you live, and what does rent cost by suburb?
Melbourne rents are quoted per week. Most tech offices are in the CBD, Docklands, Southbank, Richmond and Cremorne (home to firms such as REA Group, SEEK, MYOB and Carsales), so the inner suburbs on tram and train lines are the popular choices.
| Area | Character | One-bedroom (AUD per week) | Two-bedroom (AUD per week) |
|---|---|---|---|
| CBD, Southbank, Docklands | High-rise apartments, walk to work | 500 – 650 | 700 – 950 |
| Richmond, Cremorne, South Yarra | Close to tech offices, busy nightlife | 480 – 620 | 650 – 900 |
| Fitzroy, Collingwood, Carlton | Cafes, bars, creative scene | 470 – 600 | 650 – 880 |
| Brunswick, Northcote, Thornbury | Relaxed inner north, good trams | 430 – 530 | 580 – 760 |
| St Kilda, Elwood, Port Melbourne | Bayside living | 430 – 560 | 620 – 850 |
| Footscray, Yarraville, Seddon | Inner west, better value | 400 – 490 | 520 – 680 |
| Box Hill, Glen Waverley, Camberwell | Family suburbs, strong schools | 420 – 520 | 540 – 700 |
Check live listings on realestate.com.au and Domain before you budget. A few Victorian rules help newcomers:
- The bond is capped at one month’s rent for most properties and must be lodged with the Residential Tenancies Bond Authority, not held by the landlord.
- Rent bidding is banned: agents must advertise a fixed price and cannot invite higher offers.
- Agents expect photo ID, an employment contract or payslips, and references. With no local rental history, offer your contract and a letter from your employer.
- Most rentals are unfurnished, so budget for furniture.
Book four weeks of temporary accommodation, inspect in person, and never pay a deposit for a property you have not seen; fake rental listings target new arrivals.
Medicare or OVHC: what health cover do you need?
Who gets Medicare?
Medicare, the public health system, covers citizens, permanent residents, New Zealand citizens and visitors from countries with a reciprocal health care agreement, including the UK, Ireland, the Netherlands, Sweden, Norway, Finland, Belgium, Italy, Malta and Slovenia. If you arrive on a permanent visa, enrol at a Services Australia centre in your first week.
Everyone else needs OVHC
If you hold a Skills in Demand (subclass 482) visa and are not covered by a reciprocal agreement, a visa condition requires you to maintain adequate health insurance for your whole stay. That means overseas visitor health cover from an Australian insurer such as Bupa, Medibank, nib, HCF or Allianz Care. Singles cover commonly runs from around AUD 100 to AUD 300 a month depending on the level, and family cover costs considerably more. Compare hospital waiting periods, pregnancy cover and whether GP visits are included. Our overview of the best health insurance plans for expats explains the jargon.
The Medicare levy surcharge trap
Once you do become eligible for Medicare, for example after permanent residence, an income of AUD 150,000 is above the Medicare levy surcharge threshold (just over AUD 100,000 for singles). Without private hospital cover you pay an extra 1 to 1.5 per cent of income, which often costs more than a basic hospital policy.
How do you set up banking and credit?
- Open an account before you fly. Commonwealth Bank, NAB, ANZ and Westpac all let migrants open an account online before arrival, then activate it in a branch with your passport.
- Apply for a tax file number (TFN) online with the ATO as soon as you land. Without it, your employer must withhold tax at the top rate.
- Move your savings wisely. Compare a specialist international money transfer service with your bank’s wire rate; on a AUD 30,000 transfer, a 2 per cent exchange margin costs AUD 600.
- Start building Australian credit. Your overseas credit score does not transfer. Put a phone plan and utilities in your name, and consider a low-limit credit card paid in full each month. This matters when you later apply for a car loan or mortgage.
On property: temporary residents need Foreign Investment Review Board approval to buy, pay additional stamp duty in Victoria, and, under a federal ban running from April 2025 to March 2027, generally cannot buy established dwellings at all. Most lenders also want a larger deposit from temporary visa holders. Plan to rent until you hold permanent residence.
What is commuting in Melbourne like?
Melbourne has the world’s largest tram network, a radial train system and buses, all on the myki ticketing system. A full-fare daily cap of roughly AUD 11 applies across the metropolitan area, trams within the CBD’s Free Tram Zone cost nothing, and weekend caps are lower. Commuting five days a week costs around AUD 200–230 a month; with hybrid working, many tech staff pay far less.
Cycling is practical from the inner north and along the Yarra trails. Driving to the CBD is slow and parking is expensive, with tolls on CityLink and other motorways. In the inner suburbs you can realistically skip car ownership. If you do drive, Victoria generally expects new residents to convert an overseas licence within six months; check with Transport Victoria.
A sample monthly budget on $150,000
| Expense (single person, inner suburb) | AUD per month |
|---|---|
| Rent, one-bedroom at AUD 550 a week | 2,380 |
| Electricity, gas, water, internet | 250 – 320 |
| Groceries | 550 – 700 |
| Public transport | 120 – 220 |
| Health cover (OVHC or private) | 120 – 300 |
| Mobile phone | 30 – 60 |
| Eating out, coffee, gym, entertainment | 700 – 1,000 |
| Total | About 4,200 – 5,000 |
That leaves roughly AUD 4,000–5,000 a month to save, travel or send home. A couple on one income will still be comfortable; a family of four should expect a tighter budget, mainly because of a larger rental and childcare. Temporary residents are not eligible for the Child Care Subsidy, and full-fee long day care commonly costs AUD 150–200 a day. School fee rules for children of temporary visa holders differ between states, so confirm your position with the Victorian Department of Education.
Your first-month checklist
- Activate your bank account and apply for your TFN.
- Buy a local SIM (Telstra, Optus, Vodafone or a cheaper reseller) and a myki card.
- Start OVHC from your arrival date, or enrol in Medicare if eligible.
- Choose a super fund and give the details to your employer.
- Inspect rentals on Saturdays, when most open inspections run, and apply the same day.
- Get contents insurance once you have a lease.
- Check your visa conditions and work rights in VEVO on immi.homeaffairs.gov.au.
What is life in Melbourne like for tech professionals?
Melbourne’s tech scene is broad rather than dominated by one giant: property and jobs platforms, fintechs such as Airwallex, scale-ups like Culture Amp and Linktree, the big banks’ engineering hubs, Telstra, and consultancies. Hybrid working is the norm, typically two or three office days a week.
Outside work, expect serious coffee, a strong food culture, live sport from the Australian Open to AFL, and beaches and wine regions within an hour. Flights home are long and costly, so budget for at least one trip a year.
Frequently Asked Questions
Is $150,000 a good salary in Melbourne?
Yes. It is well above the average full-time wage and supports a comfortable inner-suburb lifestyle with healthy savings for a single person or couple. For a family on one income it is solid but not lavish once rent and childcare are counted.
Can I claim relocation costs on my tax return?
Usually not. The cost of moving to take up a job is generally treated as private. If your employer pays relocation costs directly, certain items can be exempt from fringe benefits tax for the employer, so it is better to negotiate employer-paid relocation than a cash bonus.
How long until I can apply for permanent residence?
Through the Employer Nomination Scheme (subclass 186), sponsored workers can generally be nominated after two years with their employer, and some qualify directly. Points-tested visas are an alternative. For a comparison with other destinations, see our guide to the best countries for visa sponsorship jobs.
Bottom line
On AUD 150,000 plus super, Melbourne offers tech professionals a high quality of life with real savings potential. Confirm whether super is included, sort out OVHC or Medicare before you land, claim the Medicare levy exemption if you are entitled to it, rent near a tram or train line, and start building local credit from day one. Get those basics right and the city is an easy place to settle.