How much to budget for a working holiday in Australia

How much will you need to go on a working holiday in Australia? What will be your main expenses? 

This article offers answers and advice on how to financially prepare for your trip Down Under. That said, remember that every budget is different—don’t rely on other working holiday makers’ budgets because each adventure is unique. Instead, learn how to plan based on your needs and expectations using our guide below.

Why and how to budget for a working holiday in Australia

First, let’s be realistic—you do need to have some savings to apply for a Working Holiday Visa (WHV) to Australia. Leaving home with the bare minimum is a huge risk and not a way to start on the right foot on this new adventure. On the other hand, having a certain amount of money set aside will give you peace of mind and the opportunity to ease into the country at the beginning of your trip.

Of course, one of the biggest perks of a WHV is that you can work legally in Australia. So if you want, the emphasis can be put on the “working” part of your holiday to pay for more adventures later on. 

It’s worth remembering that everybody spends money differently. Your budget will depend on your lifestyle, expectations and plans. For some people, a working holiday in Australia is an opportunity to adopt the vanlife and spend months on the road, while others go for an urban experience in one of Australia’s dynamic cities. This is just to say that budgets vary greatly from one working holiday maker to the next. Your budget will be the right one as long as it aligns with your plans.

What’s the minimum budget for a working holiday in Australia?

Mandatory proof of funds

Savings are required to start the Australian WHV application process. It’s mandatory to show proof of funds of AU$5,000 (or the equivalent in another currency) to meet your needs at the start of your stay. So remember this is the money you must have in your account once you’ve bought your plane ticket and WHV insurance.

You will have to show evidence you have enough money (in English or translated into English) when applying for your WHV. You may be asked for proof of funds again when landing in Australia, although it’s not a common request. If you don’t, you may be refused entry to the country.

If you’re travelling on a one-way ticket, you must add the cost of a return ticket to the AU$5,000 required (i.e., an additional AU$1,000).

Pre-departure expenses for a WHV in Australia

Pre-departure expenses do not include the mandatory savings of AU$5,000.

Here is an overview of the expenses to take into consideration when planning your WHV in Australia:  

• Visa fees: the Australian Working Holiday Visa is relatively expensive. It costs AU$635.
• Airfares: prices are much higher than before the pandemic and vary widely depending on the time of year, the city of arrival, the city of departure and the airline. If you come across a good deal, go for it! There’s no need to wait until the last minute, as it’s rare to find more competitive prices the day before departure. Compare prices to find the best offer.
• WHV insurance: it’s mandatory for most WHV destinations, and can be for the Australia WHV (if your visa is issued with condition 8501 – Maintain adequate health insurance). Insurance remains a major expense but don’t cut corners here, you’ll be happy to have insurance if anything happens. 
• Travel gear: you may find yourself looking for a backpack, electronics, camping gear, etc., before your trip. Travel light! You’ll find plenty of stores in Australia to complete your equipment, if necessary (Kmart, a discount chain, will probably sell what you forgot to buy).
• Passport: you will need a valid passport to travel to Australia, so now is the time to apply for one or renew your current document… and it comes with a fee.
• Medical check-ups: it’s best to leave with peace of mind so now is the time to see your ophthalmologist, gynecologist, general practitioner, etc. As a reminder, your WHV insurance will not cover routine check-ups or expenses related to existing health problems. For example, if you need new glasses because your prescription changed, your new pair will not be covered by your insurance while you’re in Australia. It’s best to think ahead!
• Clothing: in Australia, it can be cold and even snowy (yes, it snows in Australia!). Depending on the season and when you arrive, it’s always a good idea to pack warm clothes. Also, don’t take your most valuable clothes or even brand-name clothes—they will take a beating on the road.
• Accommodation for the first few nights: before you leave, book a few nights in a hostel, Airbnb or hotel to recover from jet lag and a long journey. 

To give you an idea, here are my April 2022 pre-departure expenses: 

How to start a budget before your trip

There are standard expenses to plan for at the beginning of a WHV adventure in Australia. Your budget will vary depending on transportation, rent, food, inflation, etc.

Here are the expenses you’ll need to plan for at the beginning of your stay:

• accommodation
• transportation
• groceries
• cell phone plan

All travellers will have to eat, get around, and sleep somewhere but your budget will depend on your plans and how you want to start your adventure. Are you going to take English conversation classes to master the local lingo? Are you planning to buy a converted vehicle right away? Are you embarking on a road trip along Australia’s east coast? Or do you want to find a job as soon as you arrive? Will you look for volunteering opportunities?

It’s time to be realistic. Ask yourself the right questions—is this going to be a “working” adventure or a long holiday? 

Leaving home with enough money offers peace of mind. It will also help you make the most of your working holiday adventure in Australia because let’s face it, some money is the key to unforgettable opportunities—a cruise in Tasmania, a snorkelling trip with whale sharks, a helicopter flight over the Great Barrier Reef… You’re probably not travelling all the way to Australia to spend a year picking watermelons. Save and bring more money than you think you’ll need to dedicate some of it to the travel experience.

Analyze your current spending patterns and define what matters most to you. Do you love going out? Are you a foodie? Do you want to join a gym? Plan for your initial expenses to define your long-term budget in Australia and adjust as needed.

How much does a year in Australia cost?

There’s no right answer to this question. In fact, if like many working holiday makers, you will combine paid work opportunities with travel, you don’t necessarily need a set budget because you can work when your funds are getting low.

That’s the whole point of the Australian WHV!

However, it’s not uncommon to come across working holiday makers who spend their year travelling around Australia. If this is your plan as well, you’ll need to budget carefully since you won’t have any source of income for a year. Keep in mind that if you can’t save as much as you were hoping, you can shorten your stay—you don’t have to stay in Australia for an entire year. 

Every working holiday adventure is unique, it’s your trip, and it’s up to you to plan it the way you want it to be!  

How to budget for an urban working holiday

Generally speaking, if you live in an urban area, housing will be your biggest expense. The cost of living is quite high in most Australian cities. Your budget will depend on where you settle Down Under.

To keep rent affordable, many Australians share a place with “flatmates.” It’s quite easy to find a room for rent.

You will have to budget for:

• housing
• transportation
• groceries
• cell phone bill
• activities and entertainment.

How to budget for a working holiday on the road

Your budget will be quite different if you’re spending your working holiday on the road… and once again, it depends on your lifestyle, travel plans and expectations. 

Are you going to buy a van, a 4×4 or another converted vehicle? Or are you going to leave the driving to someone else and try your luck at hitchhiking?

If you’re buying a vehicle, here are the initial expenses to consider: 

• vehicle price (note that prices have skyrocketed following the pandemic)
• registration transfer 
• insurance
• equipment

And once on the road, budget for:

• gasoline
• parking 
• tolls
• groceries
• cell phone plan
• miscellaneous expenses (repairs)
• activities and entertainment

Plan for the end of your stay

Is your working holiday in Australia ending soon? Take the opportunity to sell what you don’t want to bring home. This will save you extra luggage charges at the airport.

If you bought a van during your stay, it’s a good idea to get ready to sell it. You may get some of the money invested in your vehicle back.

Saving money before and during a WHV in Australia

How to save money before your trip to Australia

There are several ways, big or small, to add to your savings before you leave. Here are a few ideas to save more money for greater peace of mind.

Tips & tricks: 

• move back with your parents for a while
• cut back on day-to-day expenses
• put money aside regularly
• look for odd jobs
• sell some of your belongings (anything without sentimental value and won’t use during your year in Australia, e.g., your car)
• cancel subscriptions (phone, Netflix, etc.).

How to save money during your working holiday in Australia

There are many ways to live frugally during your working holiday in Australia. 

Tips & tricks:  

• volunteer for room and board
• look for odd jobs
• hitchhike
• carpool
• use public transport (take a night bus to save a night in a hostel, for example)
• save money on food (avoid buying expensive imported products, for instance)
• rent a room in a shared house
• stay in hostels
• sleep in your car

That said, don’t forget to splurge when it’s worth it—you’ve travelled all the way to Australia for once-in-a-lifetime experiences, after all! Define your priorities, save money whenever possible and spend when it matters. 

Budget for an emergency fund

Don’t forget to keep enough money to cover the unexpected. For example, if you have to fly home for an emergency, having at least AU$1,000 (or equivalent in your home currency) set aside will save you a headache. On the other hand, if you only have $10 left, this can quickly become a problem. Remember you’re alone, far away from home—you need to be able to deal with all kinds of situations.

This article offered an overview of typical expenses and stressed the need to consider your working holiday maker profile and travel plans. 

Now start budgeting!

And remember that you can work legally during your stay! You should be able to balance your budget and make the most of your experience. Once you’ve saved enough for the mandatory proof of funds, you can technically have a great experience if you adjust your budget accordingly.