Moving to Japan for Australians

To work in Japan as an Australian citizen, you need a work visa. The process always starts with a Certificate of Eligibility (CoE), requested by your Japanese employer from the Immigration Bureau. Here are the main visa categories available:

Engineer / Specialist in Humanities / International Services

This is the most common visa for foreign professionals. It covers three areas: engineers, developers, and researchers in natural sciences (Engineer); professionals in law, economics, accounting, or marketing (Specialist in Humanities); and translators, interpreters, language teachers, designers, and public relations professionals (International Services).

Requirements: a university degree in the relevant field, or 10 years of professional experience (3 years for international services). Your salary must be at least equivalent to what a Japanese national would earn in the same role.

Highly Skilled Professional (HSP)

This points-based visa targets highly qualified profiles. A score of 70 points or more unlocks significant benefits: your spouse can work, and parents can join the household. With 80 points or more, permanent residency is accessible after just 1 year instead of 10. Criteria include degree level, annual salary, age, work experience, and a bonus if your university appears in certain international rankings. Degrees from Australia's Group of Eight universities (Melbourne, Sydney, ANU, UNSW, Queensland, Monash, Adelaide, Western Australia) are well regarded in this system.

Business Manager

This visa allows you to create or manage a company in Japan. Requirements include a minimum investment of 5 million yen (approximately $50,000 AUD) or the employment of 2 full-time staff, along with a physical office in Japan.

Other options

The Working Holiday Visa (18-30 years old, extendable to 35 in some cases) is one of the most generous arrangements Japan offers any country. Australians benefit from a high annual quota and the programme is well-established. Places are limited so apply early, especially for peak intake periods.

The Spouse Visa gives you full access to the Japanese job market if your partner is Japanese. The Intra-Company Transfer visa applies to employees being relocated within the same international group, a well-trodden path for Australians at multinationals with Japanese operations.

Tip: start the process at least 3 to 4 months before your planned departure date. The CoE takes 1 to 3 months to process, and the visa itself is issued within 5 to 7 business days at the Japanese Embassy in Canberra or the Consulate-General in Sydney, Melbourne, or Brisbane.

For Australians accustomed to Sydney or Melbourne prices, Japan comes as a very pleasant surprise, even in Tokyo. The current AUD/JPY exchange rate makes the country highly accessible, and the value for money on everyday items, dining, and transport consistently impresses Australian newcomers. Housing, in particular, is dramatically cheaper than in Australia's major cities.

Housing: the main expense

Housing is the largest single cost. There are several Japan-specific features worth understanding before you sign anything: key money (reikin) is a non-refundable gift to the landlord, typically 1 to 2 months of rent, though an increasing number of foreigner-friendly apartments have dropped this requirement. The security deposit (shikikin) is 1 to 2 months of rent, refundable at move-out minus cleaning fees (20,000 to 50,000 ¥). Agency fees can reach 1 month of rent plus tax. A guarantor (hoshonin) is mandatory: foreigners typically use a guarantee company (30% to 100% of one month's rent).

Budget 4 to 7 months of rent for upfront costs before moving in. A studio in Tokyo runs $500 to $900 AUD per month. In Osaka or Fukuoka, expect $350 to $600 AUD. These figures are dramatically lower than equivalent accommodation in Sydney or Melbourne.

Tip: UR (Urban Renaissance Agency) and JKK Tokyo apartments require no key money, no renewal fees, and no agency commission. An excellent option for new arrivals who want to avoid the full upfront hit.

Other expenses

Food runs about $400 to $650 AUD per month. Japanese supermarkets are very affordable and a restaurant meal costs between $8 and $18 AUD, well below what you would pay in any Australian capital city. The monthly transit pass costs $80 to $130 AUD depending on commute distance and is often reimbursed by employers. National Health Insurance (NHI) contributions are roughly 8 to 10% of income, covering 70% of medical costs. A supplemental private insurance plan is recommended to cover the remaining 30%, particularly for families.

Internet, phone and digital life in Japan

Japan has outstanding digital infrastructure, with a few quirks that expats should know about before arriving.

Fixed internet

Fibre optic broadband (FTTH) is widely available across Japan. The main providers are NTT Flet's, au Hikari, and SoftBank Hikari. Expect around 4,000 to 5,000 ¥ per month (roughly $28 to $35 AUD) for gigabit speeds, a fraction of what Australians typically pay for comparable broadband. Installation takes 2 to 4 weeks and may require your landlord's approval.

Mobile phone

The three major carriers (NTT Docomo, au (KDDI), SoftBank) offer full contract plans at 5,000 to 8,000 ¥ per month. Budget MVNOs such as IIJmio, Rakuten Mobile, and Y!mobile provide unlimited data plans from 2,000 to 3,000 ¥ per month and are the go-to option for most expats. In your first few weeks before getting a Residence Card, a prepaid eSIM or Sakura Mobile is the simplest solution to stay connected.

Banking and payments

Opening a Japanese bank account can be tricky in the first few months. Japan Post Bank (Yucho Ginko) is the most accessible option for foreigners and can be opened as soon as you have your Residence Card. Shinsei Bank offers an English-language interface, an international debit card, and a streamlined opening process. SMBC Prestia is a multi-currency bank with English-language services, well suited to expats with international financial needs. Wise and Revolut are strongly recommended for AUD/JPY transfers, offering rates that are far better than Australian high-street banks.

Worth knowing: Japan remains very much a cash society. Many local restaurants, smaller shops, and vending machines do not accept card payments. Always carry some yen on you.

The Australia-Japan Tax Treaty

Australia and Japan have a comprehensive double taxation agreement. Unlike US citizens, Australians are taxed based on residency rather than citizenship. Once you establish non-Australian tax residency, you are generally no longer liable for Australian income tax on your Japanese earnings. Your Japanese income will be taxed in Japan under the progressive Japanese tax system.

Australian tax residency: a complex and fact-specific test

Australia's tax residency rules are among the most complex in the world for expats. The ATO applies a combination of tests including the resides test, the domicile test, the 183-day test, and the superannuation test. Crucially, the ATO can still treat you as an Australian tax resident even after you move to Japan if you maintain significant ties to Australia: property, a spouse or dependants remaining in Australia, ongoing Australian financial accounts, or an intention to return.

If you are assessed as a continuing Australian tax resident, you will be taxed in Australia on your worldwide income, though the Australia-Japan tax treaty and foreign income tax offsets (FITO) prevent true double taxation in most cases.

To establish clean non-Australian tax residency, you typically need to demonstrate a permanent place of abode in Japan, sever sufficient Australian ties, and show an intention to reside in Japan for the long term. Given the ATO's track record of challenging expat residency claims, a tax adviser familiar with Australian expat taxation is strongly recommended before departure.

Income tax in Japan

The Japanese tax system is progressive. National income tax ranges from 5% to 45% depending on the bracket, plus a reconstruction surtax of 2.1% through 2037. Local tax (jumin-zei) is a flat rate of approximately 10% of income. For a salary of 5 million yen (roughly $50,000 AUD), expect a combined effective tax rate of around 20 to 25%. This compares favourably with the top marginal rate of 47% (including Medicare levy) that applies in Australia.

Tax residency status in Japan

If you have been in Japan for less than one year, you are a non-resident and taxed only on Japanese-source income at 20.42%. From 1 to 5 years, you are a non-permanent resident and taxed on Japanese income plus foreign income remitted to Japan. After 5 years, you are a permanent tax resident and taxed on your worldwide income, just like a Japanese national.

Superannuation: the key financial planning issue for Australians

Your Australian superannuation continues to be governed by Australian law regardless of where you live. Key points to understand:

You cannot access your super early simply because you have moved to Japan. Preservation rules still apply: you must meet a condition of release (reaching preservation age, permanent incapacity, etc.) to make a withdrawal.

If you become a non-resident for tax purposes, your super fund may withhold tax at the non-resident rate (up to 45%) on certain withdrawals. This can significantly erode your balance if not planned carefully.

Contributions from abroad are possible but complex. Your employer in Japan is not obligated to make Australian super contributions. You can make voluntary personal contributions from Japan, but your ability to claim a tax deduction for them depends on your residency status.

Death and disability insurance held within your super fund may be cancelled if your fund classifies you as a non-active member after an extended period of no contributions. Check your fund's rules before leaving.

Social security: Australia-Japan Agreement

Australia and Japan signed a bilateral social security agreement that came into force in 2009. This agreement avoids double contributions and allows contribution periods from both countries to be combined for pension eligibility.

On a secondment from an Australian employer (up to 5 years), you remain in the Australian system and are exempt from Japanese pension contributions. Your employer must obtain a Certificate of Coverage from Services Australia.

On a local contract, you contribute to the Japanese system (NHI and nenkin). Contribution periods in Japan count toward your Australian Age Pension eligibility under the totalization rules, and vice versa.

The Australian Age Pension can be paid abroad, but the amount may be reduced under the outside Australia rules if you have not lived in Australia for at least 35 years by pension age.

Practical advice: Australian expat taxation and superannuation are genuinely complex. The cost of getting it wrong, particularly around super tax treatment and ATO residency disputes, can be substantial. Consult an Australian expat tax specialist and your super fund before you leave.