Costs of Living: Australia vs Singapore

I read the Singapore newspapers online yesterday and realised the GST there will be increased from 5% to 7%. Some friends I spoke to were unhappy about the rise, understandably.

However, having moved to Australia for 1.5 years, I am beginning to realise the Singapore government manages the money of its people far better than the Australian government. In Australia, prior to implementing the 10% GST, the government promised that all other taxes will be abolished. In actual fact, some items are taxed twice over, leading the tax to be more than the 10% promised.

But what really irks me is the way the superannuation scheme (in Singapore, it's CPF) is handled here . In Australia, companies (not government) handle your superannuation funds (and there are thousands of different funds to choose from) and despite us paying income tax, we are charged three times when our money goes into a superannuation fund - first, when we deposit our money, second, a regular fee while our money is still in the fund, and third, when you want to take it out (only from 60, I think).

So, it's not a matter of seeing your funds increase, it's hoping it doesn't decrease too much cos how much interest does one have to earn in order to cover all the taxes, charges and fees? In Singapore, interest is a minimum guarantee of 2.5%. There are no charges and fees (are there?). And including your own contribution (20%) and employers' contribution (16%), some 36% of your salary goes into your retirement fund each month. In Australia, as employees, it's not compulsory for us to contribute (cos after the taxes and all, how much net income will you have left if they made superannuation contribution compulsory). But the employers contribute 9%. Imagine how long it'll take to grow the fund the way it grows in Singapore...slowly.

And income taxes are so high here, compared to Singapore. I pay about 20% income tax, while Phill pays more, leaving us with lower disposable incomes. And my pay here is so bad, I earned the same amount of pay in my 2nd year in government service in Singapore!

If I came here with the idea of having a better (financial) life, I think I might already be making plans to head back to Singapore. But I came here for Phill and won't be moving back.

Over the weekend, we were also casually discussing that when we turn 60, we may retire several months a year in Singapore, and then the remaining months in Australia. Otherwise, we won't be able to afford to retire. This prompted one of my friends to say, "Singaporeans go to Australia to retire, you heading back to retire". Things are more affordable in Singapore. If I want to head out and watch a movie, my transport cost in Singapore will be a couple of dollars (MRT train) and a movie costs S$7-S$9.50 (A$6.25-$8). And I can have a meal at the hawker centre (including 1 drink) for about S$6 (A$5). In Australia, to drive out to the next town (where there's shopping) takes 45 minutes and costs more than A$10 on fuel. A movie ticket costs at least A$11 (in the country) or A$15 (in the city). A meal with a drink (lunch) costs at least A$12 - $15. So, even if I wanted to take a break and just have an outing, thinking about the costs will prevent me from doing so.

And the costs of a holiday can be depressing too. In Singapore, a few hundred dollars can take you to another country where the exchange rate is favourable and it's a great getaway. But in Australia, a few hundred dollars don't exactly pay for the entire trip (car/airticket, meals, accommodation) to the next state. The government protects their national air carrier so much that airfares are not competitive at all. Phill pays 50% more than I do (I buy my ticket from Singapore) to fly to Singapore.

For many Singaporeans who want to move to Australia, I can understand why. Over here, employers still respect 'family time' and people in my country town are nice and friendly. And things are believed to be less stressful. In the country, it is indeed less stressful most of the time, maybe about 10-20%, but not a whole lot. In the city, I find things to be equally or more stressful than Singapore. Seeing how people rush around, the level of politeness since the first time I was in Australia in 1996 has dipped rather dramatically - the bane of modern society?

To those who are considering the move, perhaps a temporary move to better understand the country you're moving to may be a wiser option than a permanent move (giving up your citizenship), cos you may realise that the country you left may not be that bad after all.