Why Australians Are Moving to Singapore in 2026
Australia has long been one of Singapore’s largest sources of expatriate professionals. In 2025 and 2026, that flow accelerated — driven by Singapore’s considerably lower personal tax rates, zero capital gains tax, proximity to Asian markets, and a stable, rule-of-law environment that feels familiar to Australians yet operates at a distinctly different pace.
The single most cited reason is tax. Australia’s top marginal income tax rate is 45%, with a 2% Medicare levy on top — giving a combined rate of 47% on income above AUD 190,001 (approximately SGD 165,000). There is a capital gains tax (CGT) that applies to the disposal of most assets, with an effective rate of up to 23.5% even after the 50% discount for assets held over twelve months.
Singapore’s personal income tax is progressive and comparatively low. The top rate of 24% applies only to chargeable income above SGD 1,000,000. A professional earning SGD 200,000 per year pays roughly 11–12% in effective personal income tax. There is no capital gains tax, no inheritance tax, no wealth tax, and no CGT on the disposal of shares or property. For the senior Australian professional earning AUD 400,000, the effective tax rate in Singapore could be less than half what it is in Sydney.
The Employment Pass: What Australian Professionals Need
To work legally in Singapore, an Australian national will need an Employment Pass (EP) — Singapore’s primary work authorisation for foreign professionals, managers, and executives, issued by the Ministry of Manpower (MOM).
As of 2026, the minimum qualifying salary is:
- SGD 5,600 per month for most sectors
- SGD 6,200 per month for the financial services sector
These thresholds rise again in January 2027 — to SGD 6,000 and SGD 6,600 respectively — so both employers and candidates should plan ahead. Critically, Australian nationals face no EP-specific nationality restrictions. Unlike the Work Permit scheme, the EP is open to nationals of all countries provided they meet the salary and COMPASS criteria. The EP application is made by the employer through MOM’s EP Online portal and typically takes three weeks to process.
Navigating COMPASS
Since September 2023, most EP applications are assessed under the Complementarity Assessment Framework (COMPASS). COMPASS is a points-based system requiring candidates to score at least 40 points across individual-level and firm-level criteria.
The individual criteria assess the candidate’s salary relative to local peers in the same occupation, and whether their qualifications come from a recognised institution. The firm-level criteria assess the employer’s local PMET workforce share and degree of nationality diversity within the company.
For most Australian professionals in finance, technology, law, or professional services, the individual-level criteria are straightforward. Degrees from Australian Group of Eight universities (University of Sydney, UNSW, University of Melbourne, etc.) score full bonus points. A salary at or above the 80th percentile of local comparators in the same occupation adds further points.
One important carve-out: COMPASS does not apply if the candidate’s fixed monthly salary exceeds SGD 22,500. At that salary level, the EP is assessed directly on merit without COMPASS.
The Tax Reset: What Changes on Day One
Australians relocating to Singapore experience what tax advisers informally call a “tax reset”. From the date of arrival and tax residency establishment, Singapore’s rules apply — and Singapore taxes only Singapore-sourced income.
No tax on offshore income. Singapore does not tax income earned outside Singapore, with narrow exceptions. Dividends from Australian shares held personally, rental income from an Australian investment property, or consulting fees from overseas clients — none of these are taxable in Singapore as a general rule.
No capital gains tax on disposal. Singapore has no CGT at all. If you sell Australian shares while a Singapore tax resident, any gain is not taxable in Singapore. Whether Australia still taxes that gain is a separate matter addressed below.
Personal income tax filing. Singapore personal income tax is filed annually, with IRAS accepting e-filings by 18 April each year. New residents are assessed on Singapore employment income only for the period they were tax-resident in Singapore during the year.
Dealing with Australia: The DTAA and Exit Planning
The Singapore-Australia Double Taxation Avoidance Agreement (DTAA) prevents double taxation on the same income. Once you are a Singapore tax resident and have ceased to be an Australian tax resident, Australia’s taxing rights over your Singapore employment income cease. The key is formally establishing non-residency for Australian tax purposes — the ATO uses a facts-and-circumstances test, with primary indicators being: your permanent home is outside Australia, you have no ongoing Australian employment, and you have established a home in Singapore.
A critical issue for departing Australians: Australia taxes capital gains that accrued up to the date of departure, even if you sell the asset later. If you hold significant Australian shares, investment property in your own name, or trust interests, professional Australian tax advice before departure is strongly recommended. The interaction between Australian CGT and the DTAA is complex and fact-specific.
Superannuation remains in Australia under Australian rules. Australian citizens and permanent residents cannot access superannuation early by becoming Singapore residents.
Your Family: Dependant’s Passes and Children
If you relocate with a spouse and children, they will need their own passes. An EP holder earning SGD 5,600 or above is eligible to sponsor Dependant’s Passes (DPs) for a legally married spouse and unmarried children under 21. Since May 2023, a DP holder can work in Singapore with a Letter of Consent (LOC) from MOM rather than needing a separate work pass.
Children typically attend international schools in Singapore — excellent, but expensive, with fees ranging from SGD 25,000 to SGD 45,000 per year per child. Singapore Citizens and PRs have priority access to local government schools with significantly lower fees.
One planning consideration for families with sons: if your male children become Singapore PRs before the age of 16.5, they will be subject to National Service (NS) obligations. NS is a serious two-year commitment that shapes careers and life plans. Our detailed guide on National Service for PR children in Singapore covers eligibility, timing, deferment, and what families need to know before applying for PR for male children.
Healthcare for EP Holders
Singapore’s healthcare system is world-class, combining public restructured hospitals with excellent private hospitals and specialist clinics. As an EP holder, you are not automatically enrolled in the national Medishield Life framework or eligible for CPF Medisave — both of which are available to Singapore Citizens and PRs. Most employers provide private medical insurance as part of the employment package; confirm this explicitly, and whether it covers dependants, before accepting an offer.
The Singapore PR Pathway
Many Australians who arrive on an EP eventually apply for Singapore Permanent Residence (PR). PR unlocks Singapore-subsidised public school access for children, access to CPF, and considerably greater job flexibility and stability.
Applications for PR through the Immigration and Checkpoints Authority (ICA) are typically submitted after one to two years of continuous EP holding. ICA assesses applications holistically — salary, employer, qualifications, economic contribution, length of residency, and community involvement all factor in. Approval timelines vary between six months and over a year, and there is no published pass/fail threshold; PR is a discretionary grant.
Banking, Setup, and Cost of Living
Opening a Singapore bank account as a new EP holder requires your passport, physical EP card, and proof of Singapore residential address. Singapore’s main retail banks — DBS, OCBC, and UOB — all offer accounts suitable for expatriates. DBS and OCBC allow online account opening via Singpass, which EP holders can access after receiving their EP card and FIN (Foreign Identification Number). For transferring funds from Australia, platforms such as Wise often offer meaningfully better exchange rates than bank telegraphic transfers for large one-off transfers.
Singapore is expensive, particularly for housing. Rent for a two-bedroom apartment in a central district runs SGD 4,000–6,500 per month; further from the CBD, SGD 2,500–4,000. Cars are expensive due to the Certificate of Entitlement (COE) system; most expatriate professionals rely on the MRT and ride-hailing services. Groceries are comparable to Sydney; hawker centre meals cost SGD 4–8. When the full financial picture is drawn — no CGT, a top income tax rate less than half of Australia’s, no inheritance tax — the net position for a high-earning Australian professional in Singapore is typically considerably more favourable even after accounting for international school fees and higher rent.
Get Help with Your Move to Singapore
LBEA is a MOM-licensed employment agency (Licence No. 19C9790) specialising in work pass applications, family pass sponsorship, and Singapore relocation advisory. Our team has guided Australian professionals through the Employment Pass application process and the broader transition to Singapore life. Contact us for a consultation — whether you are at the research stage or ready to file.