Superannuation is a pension plan. Taxes are high compared to US but probably lower than most of Europe. Cost of living is cheap except for housing which is high in MEL (and really high in SYD), rest of Australia is cheap. MEL has had a housing boom for the past 5 years with prices doubling or tripling during that time; this bubble is starting to burst with some prices falling in the past few months, often by 30% (depends on the type of property). Melbourne is one of the best cities in the world. Period. But I don't live there, so I can't fully comment. However I have looked at it somewhat closely (and I go there to buy wine, now that I know where to buy wine there -- save enough to pay for the trip).