Singapore vs Australia After Australia’s 2026 Budget: The Honest Comparison
Editors note as at 1 June 2026. International tax rules change frequently. Please confirm the current tax rules and their application to your circumstances for any destination that you are seriously considering before making a relocation decision. We can assist with that analysis where required.
If you ask an Australian banker, founder, or family office principal where they’d actually move if they were leaving, the answer is almost always Singapore.
Not because it’s exotic. Not because the weather is nicer (it isn’t, particularly). Not because the food is better than what you can get in Melbourne (some things are, some things aren’t). They name Singapore because, after the 2026 Budget changes that take Australia’s effective capital gains tax to 47% on the indexed gain for high-income earners, Singapore is the gold standard for what a developed, English-speaking, common-law, financial-services-driven jurisdiction does on tax.
No capital gains tax. No tax on foreign-sourced income for individuals. A top personal income tax rate of 24% that kicks in only above SGD 1 million of chargeable income. No estate duty. No inheritance tax. No wealth tax. No withholding tax on dividends.
If you put a Singapore tax position alongside an Australian post-2027 tax position on the same set of facts, the Singapore outcome is, in most realistic scenarios for Australian high-income earners, the most attractive among comparable destinations. The country has spent decades building a tax system that actively attracts mobile capital, and the system works exactly as designed.
The catch is that Singapore doesn’t let you just turn up. Unlike Australia, where you already have the right to live and work, Singapore requires a proper immigration pathway, and the pathways are demanding, expensive, or both. The cost of living is significantly higher than most Australians expect (Singapore housing in particular). And the city’s specific cultural fit (efficient, ordered, regulated, less larrikin than Melbourne or Sydney) suits some Australians better than others.
This article walks through what an Australian actually faces if they relocate to Singapore. The tax position. The immigration pathways. The departure planning. The honest assessment of who Singapore works for and who it doesn’t.
The headline tax position
Singapore does not impose capital gains tax on individuals.
That’s the foundation. When a Singapore tax resident sells shares (public or private), business interests, art, collectibles, digital tokens held as personal investments, or most other capital assets, no Singapore capital gains tax applies. Real property gains are also generally not taxed where capital in nature, but Singapore property transactions can still involve significant stamp duties, including Buyer’s Stamp Duty, Additional Buyer’s Stamp Duty (which is materially higher for foreign purchasers, currently up to 60% of purchase price), and Seller’s Stamp Duty in some cases. There’s a trading test under the Singapore Income Tax Act that can recharacterise gains as business income if you’re genuinely running a trading business (frequent transactions, short holding periods, profit-seeking systematic activity), but for ordinary long-term investors, the position is zero.
Personal income tax is progressive across resident tax brackets, with the top rate of 24% applying only above SGD 1,000,000 of chargeable income. For Australians used to a 47% top rate that kicks in at AUD 190,000, the Singapore rate structure is dramatically more generous at each end of the tax scale.
Foreign-sourced income received in Singapore by individuals is generally exempt from Singapore tax. This is a major point and worth labouring because most Australian content underplays it. An Australian who becomes a Singapore tax resident and receives Australian dividends in their Singapore bank account, or Australian rental income, or interest from a foreign portfolio, doesn’t pay Singapore tax on any of it (with limited exceptions, mainly for foreign income received through a Singapore partnership). The exemption isn’t conditional on remitting or not remitting. Foreign-source income simply doesn’t fall into the Singapore individual tax net.
Singapore dividends paid out of Singapore-resident companies are exempt from individual tax under the one-tier corporate tax system (corporate tax already paid on the underlying profits).
GST is 9%, broadly applied. There is no estate duty (abolished in 2008), no inheritance tax, no wealth tax, no withholding tax on dividends. There is no general payroll tax. Employer and employee contributions to the Central Provident Fund (CPF) apply to Singapore citizens and Singapore Permanent Residents, but not to foreigners on work passes, so for most Australian expats CPF is not a cost factor.
The trading test is the main practical risk worth being aware of. The Inland Revenue Authority of Singapore (IRAS) applies a facts-and-circumstances assessment that considers frequency of transactions, holding periods, financing methods, and the taxpayer’s primary income source. An Australian who relocates to Singapore and runs a personal share trading book at high frequency could find IRAS treating gains as business income at progressive rates. An Australian holding shares as a genuine long-term investment is not in that category.
For the avoidance of doubt: Section 10L of the Singapore Income Tax Act, which from 1 January 2024 taxes certain foreign asset disposal gains, applies only to “relevant entities” within multinational corporate groups, not to individuals. Section 10L is a corporate anti-avoidance measure aimed at companies without economic substance in Singapore. For individual Australian expats, it doesn’t apply.
The foreign-source income exemption for individuals
This section is worth a section to itself, because the planning value for Australians is large and the rule is often misunderstood.
The Singapore individual foreign-sourced income exemption is set out in the Income Tax Act and confirmed by IRAS guidance. All foreign-sourced income received in Singapore by a resident individual, except foreign income received through a Singapore partnership, is exempt from Singapore tax.
Three things to note about this.
First, it covers all categories. Foreign dividends. Foreign interest. Foreign rental income. Foreign pension income. Foreign capital gains (which would not be taxed anyway because Singapore has no CGT, but the exemption confirms the position for jurisdictions that might tax such gains as ordinary income). Foreign royalties. Foreign business profits, provided the income is genuinely foreign-sourced and not received through a Singapore partnership.
Second, it covers received income, not just income kept offshore. Unlike Thailand’s remittance basis, the Singapore exemption applies whether you bring the money into Singapore or leave it overseas. You can receive Australian dividends directly into your DBS account and they’re still exempt. You can liquidate an Australian portfolio and transfer the proceeds to Singapore and they’re still exempt. The exemption is structural, not behavioural.
Third, it doesn’t apply to Singapore-source income. Salary you earn in Singapore and business profits you generate in Singapore are taxable under Singapore’s normal rules. Dividends from Singapore-resident companies are generally exempt in the hands of individuals under the one-tier corporate tax system. Singapore dividends paid under the one-tier system are generally exempt from further Singapore tax in the hands of shareholders, while Singapore-source interest depends on the payer and the relevant domestic exemption rules. The foreign-source exemption is specifically for foreign-source income.
For an Australian considering relocation, this changes the after-tax economics substantially. An Australian who keeps significant investment assets in Australia after relocating to Singapore can receive the income from those assets in Singapore without Singapore tax. Combined with the no-CGT position on disposals, this means an Australian who is a Singapore tax resident, can hold an Australian share portfolio, receive Australian dividends and interest, eventually sell the portfolio, and pay zero Singaporean tax across the entire arrangement.
The Australian side of this still needs to be planned (the dividends are usually still Australian-source for Australian withholding tax purposes, the cessation of Australian tax residency triggers CGT Event I1, and so on). But the Singapore side is genuinely clean.
Immigration: the genuine hurdle
Living and working in Singapore requires an actual immigration pathway, and the pathways are demanding. There’s no equivalent of the automatic right to live and work that you have at home in Australia, and no visa-free residency for Australian citizens. You need to qualify under one of Singapore’s work pass or investment schemes.
Three main routes are relevant for Australians.
The Employment Pass (EP). Employer-sponsored work visa for foreign professionals, managers, and executives. Minimum qualifying salary from 1 January 2026 is SGD 5,600 per month (SGD 6,200 for financial services), rising to SGD 6,000 (SGD 6,600 for financial services) from 1 January 2027. The salary requirement is age-adjusted, so older candidates need higher salaries to qualify. Beyond the salary, applicants need to pass the COMPASS framework, a points-based assessment that scores candidates on salary competitiveness, qualifications, workforce diversity, and the employer’s local hiring record. EP is valid for up to 2 years initially, then renewable for 3 years. Spouses and unmarried children under 21 can apply for Dependant’s Passes.
For most senior Australian employees moving to Singapore for a job, EP is the realistic pathway. The catch is that you need an employer willing to sponsor the application, and the employer has to demonstrate that hiring you is appropriate under COMPASS (which has explicit local-hiring elements). For Australians being recruited into senior roles at multinationals, this is generally straightforward. For Australians wanting to move first and find a job later, EP doesn’t work without a sponsoring employer.
The Overseas Networks and Expertise Pass (ONE Pass). Singapore’s premium personalised work pass, introduced in 2023 and aimed at top-tier global talent. The salary threshold is SGD 30,000 per month (approximately AUD 35,000 per month, or AUD 420,000 per year). Applicants must either currently earn that salary for 12 consecutive months at an established employer (market cap above USD 500 million or annual revenue above USD 200 million) or have a confirmed offer to earn it from a qualifying Singapore-based employer. Outstanding achievements in arts, culture, sports, science, or research can substitute for the salary threshold.
What makes the ONE Pass distinctive is that it’s tied to the individual, not the employer. ONE Pass holders can work for multiple companies concurrently, start businesses, switch jobs without applying for a new pass, and bring spouses (with the right to work via Letter of Consent) and children. The pass is valid for 5 years and renewable. Renewal requires either continuing to earn the SGD 30,000 average over the past 5 years or having founded and be operating a Singapore-based company that employs at least five locals each earning at least the prevailing EP minimum.
For Australian high-earners in their thirties and forties earning at a senior level, the ONE Pass is genuinely the best work pass in Singapore. It provides flexibility that no other Singapore work visa offers and avoids COMPASS scoring entirely.
The Global Investor Programme (GIP). Singapore’s investment-based pathway to Permanent Residency. Administered by the Singapore Economic Development Board (EDB) under specific applicant profiles.
Four applicant profiles qualify in 2026:
Established business owners with a substantial business track record, including a qualifying company with at least SGD 200 million annual turnover.
Next-generation principals taking over family businesses with at least SGD 500 million annual turnover.
Founders of fast-growth companies, generally requiring a substantial founder shareholding and a company valuation of at least SGD 500 million, with recognised venture capital or private equity backing.
Family office principals with at least five years of entrepreneurial, investment or management track record and at least SGD 200 million in net investible assets.
Once approved as an applicant, the actual investment commitment is one of: SGD 10 million into a new or existing Singapore-based business; SGD 25 million into an approved GIP-Select Fund; or SGD 50 million into a Singapore-based Single Family Office (with the Family Office having at least SGD 200 million AUM and SGD 50 million allocated to qualifying local investments).
GIP provides Singapore Permanent Residency, not just a work visa. PR status provides residence, work and study rights, subject to Singapore’s Re-Entry Permit framework. Eligible family members may be included. PR status may also open a pathway to apply for Singapore citizenship after a period of residence, although citizenship is discretionary and Singapore generally does not allow dual citizenship, so taking it up would usually require renouncing Australian citizenship.
For Australian high-net-worth individuals and ultra-high-net-worth investors, GIP is the cleanest pathway when the threshold conditions are met. For most Australians it isn’t relevant. The applicant profiles and investment thresholds put it firmly in the family-office and serious-founder category.
Dependant’s Passes (for legally married spouses and unmarried children under 21) and Long-Term Visit Passes (for some other family members) may be available depending on the primary pass type and eligibility criteria. Dependant’s Pass holders do not automatically have work rights. Depending on the pass type and proposed work arrangement, they may need an Employment Pass, S Pass, Work Permit, or in limited cases a Letter of Consent.
To summarise the three pathways: Singapore requires either employer sponsorship plus COMPASS scoring (EP), a salary of approximately AUD 420,000 per year and an employer with substantial financial standing (ONE Pass), or eight-figure investment commitments (GIP). For an Australian with a job offer from a multinational, the EP route is generally smooth. For everyone else, the front-end friction is real, and it’s worth being clear-eyed about which pathway actually applies to you before you build a relocation plan around Singapore. Once you’re in, the position is broadly stable.
Tax residency: when one country ends and the other begins
Singapore tax residency for individuals is determined by physical presence and the nature of work in Singapore. The main test is the 183-day rule: an individual who is physically present in Singapore for 183 days or more in a calendar year is generally a Singapore tax resident for that year. A “qualifying continuous employment” concession can extend resident status across two years where employment continues across the year boundary.
Critically, Singapore tax residency is determined on a calendar year basis and assessed in the following Year of Assessment. So days present in Singapore during 2026 are assessed for tax in YA 2027.
Australian tax residency is determined under the ordinary residency tests in section 6 of the Income Tax Assessment Act 1936 and the ATO’s published guidance. The tests look at the nature of the move, intention to return, location of family and home, retention of Australian assets and connections, and habits of life. A clean break helps. A messy departure, with the Australian house retained and family staying behind, can leave the taxpayer Australian-resident even after physically moving.
The Australia-Singapore DTA provides residence tie-breaker rules for individuals who would otherwise be resident in both countries. The tie-breakers look at whether the person has a permanent home available in one country and not the other, then habitual abode, and then the country with which the person’s personal and economic relations are closest. The DTA tie-breaker can be useful in transition years, but the goal for most movers is to be tax resident in only one country at a time.
The DTA also reduces withholding tax rates on cross-border payments. Australian unfranked dividends paid to Singapore resident beneficial owners are generally subject to Australian dividend withholding, capped at 15% under the Australia-Singapore DTA. Franked dividends are generally not subject to Australian dividend withholding under Australian domestic law (the corporate tax has already been paid). Australian rental income from Australian property remains taxable in Australia for foreign residents (and capital gains on Australian real property remain taxable in Australia under the taxable Australian property rules). Singapore-source interest and dividends paid to Australian residents are generally not taxed in Singapore beyond what the one-tier system already covers.
CGT Event I1 on departure from Australia
The Australian side of the move is where the careful planning needs to happen.
When an Australian ceases to be an Australian tax resident, CGT Event I1 in section 104-160 of the Income Tax Assessment Act 1997 deems a disposal of all CGT assets (with some exceptions for taxable Australian property) at their market value on the day of departure.
What this means in practice: a taxable gain is triggered in the year of departure on the unrealised appreciation of every applicable CGT asset. For an Australian with significant unrealised gains on Australian-held shares, foreign property, foreign business interests, or other CGT assets, the bill in the departure year can be substantial.
Section 104-165 provides a choice. The departing taxpayer can choose to disregard the deemed disposal, in which case the assets remain in the Australian CGT net. A subsequent actual disposal then triggers Australian CGT on the full gain, including the gain accruing while the taxpayer was a foreign resident.
For Singapore in particular, the I1 vs section 104-165 question has a specific dimension worth flagging. Singapore has no CGT and no foreign-source income inclusion for individuals, so any gain accrued during the Singapore residence period is not taxed in Singapore regardless of the choice. The choice is therefore mostly about the Australian outcome:
Taking I1 in the departure year and paying Australian CGT on the deemed gain resets the cost base, so future disposals while a Singapore resident are clean. The cost is paying Australian CGT in the departure year, which after 1 July 2027 is 47% on the indexed gain for high-income earners.
Deferring under section 104-165 keeps the assets in the Australian CGT net. Future actual disposals trigger Australian CGT on the full gain (including the Singapore-period appreciation). The deferral doesn’t escape Australian tax permanently, it just postpones it.
For most high-net-worth Australians moving to Singapore, the right answer depends on the specific portfolio composition, the expected timing of disposals, and the appetite for paying tax now versus later. This is the planning conversation that genuinely pays for itself.
There are also rules about the market value cost base where an asset becomes taxable Australian property (section 855-45) and the foreign resident capital gains withholding regime (which increased to 15% from 1 January 2025, with the previous AUD 750,000 threshold removed). These affect Australian property assets retained after departure.
For clarity: leaving Australia to live in Singapore does not require giving up Australian citizenship. Most Australians who relocate to Singapore stay Australian citizens. What changes is tax residency, which is separate from citizenship and depends on facts the ATO assesses case by case.
Thinking seriously about the move?
The interaction between Australian departure rules and the Singapore tax position is where most of the planning value lives. Done well, the move can substantially reduce the total tax bill across both countries. Done poorly, the departure year tax bill can be larger than necessary, or you end up paying Australian CGT on Singapore-period gains that didn’t need to be in the Australian net. We run dedicated Outbound Expat Tax Consultations to work through your specific situation, including CGT Event I1 timing, the section 104-165 choice, immigration pathway selection, and the Singapore side. Our consultations are conducted personally by Shane Macfarlane or Terryn Davidow, both partners of the firm. Generic advice isn’t good advice. Tell us your circumstances and we’ll analyse your facts and provide specialist advice for your situation.
What this looks like for different Australian profiles
Different Australian taxpayer profiles face different economics on the move to Singapore.
The founder approaching exit. An Australian founder sitting on substantial unrealised gain in a private company faces 47% effective tax on the indexed gain after 1 July 2027 if the disposal happens while still Australian tax resident. The Singapore position is no CGT on the sale (provided the sale is genuinely a capital disposal, not part of a trading business). The departure timing matters enormously, and the logic is worth getting right. CGT Event I1 taxes the unrealised gain as at the day you leave. So if most of the company’s growth is still ahead of it, leaving early can be powerful: the CGT Event I1 exit tax is calculated on a relatively small gain accrued to date, you pay a modest bill on the way out, and then all the future growth accrues and is eventually realised while you’re a Singapore tax resident, where the gain is not taxed. The Australian net only ever captured the small pre-departure slice.
Conversely, if the gain has already substantially accrued before you leave, the CGT Event I1 exit tax is calculated on that large gain and the bill is correspondingly costly, which is exactly the scenario where deferring under section 104-165 (keeping the assets in the Australian net and paying Australian CGT on eventual disposal) may be the better option. For a founder who genuinely expects significant growth after exiting Australia, achieving that growth as a Singapore non-resident makes a great deal of sense. For tech founders specifically, the immigration pathway matters: a ONE Pass tied to the founder’s substantial existing salary is much easier than negotiating EP sponsorship through a Singapore subsidiary. GIP applies if the company qualifies under the fast-growth founder profile (typically valued at SGD 500 million or more with VC/PE backing).
The high-income earner with a share portfolio. An Australian high-income earner holding significant Australian or international shares faces 47% effective tax on indexed gains from disposals after 1 July 2027. The Singapore position is no tax on capital gains from shares, plus foreign-source income (dividends, interest from the Australian portfolio held while Singapore tax resident) exempt from Singapore tax. EP is the typical immigration pathway, with the employer’s COMPASS profile and the employee’s salary both relevant. ONE Pass applies if total fixed monthly salary clears SGD 30,000. The combination of no Singapore tax on portfolio income and no Singapore tax on disposal gains, plus the structural simplicity of the Singapore individual tax system, makes this profile one of the strongest cases for Singapore.
The high-net-worth retiree. An Australian retiree with substantial Australian assets faces a 47% effective rate on indexed gains where total income (including the gain) crosses the top threshold. Singapore offers no CGT on disposals and exemption from Singapore tax on foreign-source income (Australian dividends, foreign pension income, interest income from international portfolios). Immigration is the friction point: retirees generally don’t qualify for EP (no employer) and don’t usually have the income to qualify for ONE Pass. GIP works for genuinely ultra-high-net-worth retirees who can deploy the SGD 10 million minimum. The Dependant’s Pass route can work if a working-age spouse or adult child holds the primary pass. For most Australian retirees with under AUD 10 million in assets, Singapore’s immigration pathway is the binding constraint, not the tax position.
The family with school-age children. Singapore has world-class international schools (and Singapore citizens’ children attend public schools that consistently rank among the world’s best on PISA), but international school fees in Singapore are notably high (typically SGD 30,000 to SGD 60,000 per child per year for the major international schools, with some at the top end above SGD 80,000). Housing is significantly more expensive than Sydney or Melbourne in absolute terms, with a 3-bedroom condo in a central area easily costing SGD 6,000 to SGD 12,000 per month. Public transport is excellent and car ownership is deliberately expensive (Certificate of Entitlement system). The tax position remains very favourable, but the cost-of-living comparison needs careful work.
The honest assessment of drawbacks
None of the above is an argument that Singapore is uniformly better than Australia. It isn’t.
Cost of living is the biggest practical issue. Singapore is one of the most expensive cities in the world to live in, particularly for housing and international schooling. The savings on tax can be substantial, but the higher cost base eats a meaningful chunk of the difference. A SGD 30,000 per month gross salary in Singapore translates to a meaningfully different after-tax-and-cost-of-living lifestyle than an equivalent AUD salary in Sydney.
Immigration friction is real. Singapore has substantial barriers depending on which pathway applies. For high-income earners and senior executives being recruited by a multinational, EP is typically smooth. For self-employed Australians, founders without a Singapore subsidiary, or high-net-worth individuals without GIP-qualifying assets, the path can be genuinely difficult.
The cultural fit varies. Singapore is efficient, ordered, low-crime, and highly regulated. Some Australians thrive in that environment. Others find it more constraining than they expected. The weather is hot, humid, and unrelenting. The compactness is part of the appeal (everything is 30 minutes away) but it also means there’s no wilderness escape close to home.
Singapore’s social environment is genuinely international, which is a strength, but for Australians who value a thick Australian friendship network, the Australian community in Singapore is smaller than in London or Dubai. Australians in Singapore tend to be there for specific reasons (work, family, tax planning), which produces a different social mix than the larger and more lifestyle-oriented Australian expat communities elsewhere.
The political and regulatory environment is stable, but it’s not Western liberal democracy in the way Australians are accustomed to. Restrictions on speech, assembly, and certain personal liberties are tighter than Australia. For some Australians this is a feature (efficient governance, low crime, no political drama). For others it’s a non-trivial trade-off.
The healthcare system is excellent and substantially cheaper than equivalent Australian private care, but the Medicare safety net you’ve taken for granted in Australia doesn’t exist in Singapore. Medisave (the Singapore equivalent for citizens and PRs) doesn’t apply to foreigners on work passes. Health insurance is essentially mandatory for any serious medical situation.
None of these are dealbreakers. They’re trade-offs. Singapore offers a genuinely better tax position than Australia and Australia offers a genuinely different lifestyle. The right answer depends on which factors weigh most for your specific situation.
The bottom line
For an Australian seriously contemplating relocation after the 2026 Budget changes, Singapore is the most tax-efficient destination among comparable developed Asia-Pacific jurisdictions. The combination of no CGT, no individual tax on foreign-source income, a 24% top personal income tax rate (kicking in only above SGD 1 million), and an established financial-services infrastructure makes the Singapore tax position genuinely superior to Australia’s post-2027 settings for most Australian high-income earners and founders.
The immigration pathways are demanding. High-income earners and senior executives being recruited by multinationals can usually access EP. Australians earning at the AUD 420,000+ level can usually access ONE Pass. Founders of substantial companies and family office principals can usually access GIP. Other Australian profiles (retirees, mid-career professionals without specific employer sponsorship, self-employed without Singapore business operations) face genuine difficulty getting in.
The cost of living is high. Housing and international schooling in particular eat into the tax savings. The cost of living difference partially offsets the tax difference, but rarely fully offsets it for high-income earners with mobile capital.
The cultural fit varies. Singapore works well for some Australians and less well for others. The decision should be made on more than tax grounds alone.
When you relocate overseas, it’s the things you don’t know that you don’t know that make all the difference financially between a roaring success and simply a change of scenery, same outcome, different country. The Singapore move, properly planned, can be one of the most financially significant decisions an Australian high-income earner makes after 1 July 2027. Poorly planned, it can leave value on the table or trap you in immigration arrangements that don’t survive a later change of circumstances.
Get the Singapore move planned properly
We’ve spent over 20 years advising Australian expats and Australians considering relocation. The Singapore move involves several specific planning levers that most advisers don’t surface: the timing of CGT Event I1, the section 104-165 choice, immigration pathway selection (EP vs ONE Pass vs GIP), the foreign-source income exemption for individuals, the interaction with Australian dividend withholding under the DTA, and the cost-of-living analysis for the specific Singapore lifestyle scenario. Done well, the move can save substantial tax. Done without proper planning, it can cost more than it should. Our Outbound Expat Tax Consultations are conducted personally by Shane Macfarlane or Terryn Davidow, both partners of the firm. Generic advice isn’t good advice. Tell us your circumstances and we’ll analyse your facts and provide specialist advice for your situation.
