Whether you’re planning a move to Australia or just want to know what it takes to live there comfortably, understanding the cost of living is imperative. Throughout this article, we will go over everything you need to know about expenses in Australia. This includes the following:
- Housing.
- Food.
- Transportation.
- Healthcare.
- Education.
- Utilities.
- Taxes.
- Leisure.
1. Housing Costs
Housing is by far the biggest expense, but the cost of rent or mortgage payments varies quite widely depending on:
- Location.
- Property type.
- Proximity to city centres.
Urban cities like Sydney and Melbourne are the most expensive, whereas smaller cities and rural areas are far more affordable.
- Sydney: Renting a one-bedroom apartment in central Sydney will set you back around AUD 2,500 per month, but it’s closer to 1,900 outside the city centre.
- Melbourne: Slightly more affordable in Melbourne, with city centre apartments averaging about AUD 2,000 per month and AUD 1,600 on the outskirts.
- Brisbane, Perth, and Adelaide: Expect to pay anywhere from AUD 1,300 to AUD 1,800 in the city centre. Fortunately, it becomes more affordable in suburban areas.
As for homebuyers:
- Sydney: ~AUD 1.3 million
- Melbourne: ~AUD 900,000
- Perth/Adelaide: AUD 500,000 to 700,000
Expect to pay extra property taxes if you buy – especially in high-value areas like Sydney.
2. Food and Dining
Grocery prices aren’t dissimilar to those in other Western countries, but you can expect to pay more for imported goods because of shipping. Your average person usually spends about AUD 300-500 per month on groceries, while families range between AUD 700 and AUD 1,000.
Typical grocery costs:
- Milk (1 litre): AUD 1.50
- Bread (loaf): AUD 2.50
- Chicken (1 kg): AUD 10–12
- Vegetables (1 kg): AUD 3–6, depending on type.
Dining costs expectedly vary by location and restaurant type. You could get some decent food for like AUD 15-25, but a proper three-course meal for two will set you back around AUD 80 – even at a mid-range restaurant.
3. Transportation Costs
You’ll find quite an extensive range of trains, buses, or trams in all major cities throughout Australia. You can buy tickets on the fly, but for a pass, you need to pay a monthly fee:
- Sydney: AUD 160
- Melbourne: AUD 150
- Brisbane: AUD 140
Cars are more typical throughout suburban and rural areas, but they come with a litany of fees, too. Car ownership costs include the following:
- Registration.
- Insurance.
- Fuel (which currently averages around 1.65 per litre).
- AUD 200 – AUD 400 per month for parking in city centres.
You’ve got plenty of ride-sharing services like Uber throughout the country, also. The price varies depending on the distance and time of day.
4. Healthcare Costs
Australia has a public healthcare system known as Medicare, and it’s either free or at least heavily subsidised for citizens/permanent residents. If you’re only visiting or have yet to become a citizen, you’re best off having private health insurance since Medicare may not cover you. That’s also true even of permanent residents – many people decide to go down the private healthcare route because wait times can be too long for their needs.
Private health insurance is far from cheap, costing AUD 140 – 200 per month for an adult. However, it can range depending on your:
- Age.
- Coverage.
- Provider.
- Plan.
GP visits can also cost between AUD 50 and 100, although most Aussie clinics offer “bulk billing,” where Medicare covers the full amount for you.
5. Education and Childcare
For families, public schooling is completely free for Aussie citizens and permanent residents. As for temporary residents or international students, you’re going to need to pay school fees. These can vary state by state, but you’re looking at around AUD 5,000 to 15,000 per child each year.
Childcare can be quite costly, with daycare centres charging between AUD 100 and 180 per day, depending on the location and services offered. Fortunately, the Aussie government provides subsidies so childcare costs can be offset for eligible families. Bear in mind these benefits depend on your family income and residency status.
6. Utilities and Internet
Utility bills in Australia aren’t so different to other Western countries, with small apartments expected to pay AUD 150 – 200 per month for essentials, including:
- Electricity.
- Heating.
- Cooling.
- Water.
This can easily reach around AUD 250 for larger homes, though.
For urban areas, you’ll have no shortage of internet connections, although it’ll set you back around AUD 70 per month just for standard broadband. However, rural areas aren’t so fortunate, as speeds are slower and options are more limited.
The most basic mobile phone plans are about AUD 20 per month, but these can rise to around AUD 40 – 60 for more comprehensive packages. Your options here are major providers like:
- Telstra.
- Optus.
- Vodafone.
7. Taxes and Salary Expectations
Income tax in Australia is a lot more progressive than in countries like the US, so expect higher rates for higher earnings:
- Income under AUD 18,200: No tax
- Income AUD 18,201–45,000: 19%
- Income AUD 45,001–120,000: 32.5%
- Income over AUD 120,000: 37% or more
The average salary in Australia is approximately 85,000 per year, although salaries can vary significantly by industry. Similarly to cities like London or Berlin, salaries tend to be higher in major cities like Sydney and Melbourne to compensate for the high living expenses. This is especially true among fields such as:
- Technology.
- Healthcare.
- Finance.
- Engineering.
8. Leisure and Entertainment
With the weather as beautiful as it is all year round, it’s no surprise that Aussies are active people – much of the country’s entertainment revolves around the outdoors. Beaches, hiking trails, and parks are either free or low-cost. This makes outdoor activities highly accessible to everyone, but other activities can come with costs:
- Gym memberships can cost between AUD 50 – 100 per month.
- Depending on the venue, cinema tickets are about AUD 20.
- Concert/event tickets are anywhere from AUD 80 to 150.
Drinking out can be done pretty affordably, but it all depends on where you’re going. Mid-range restaurant meals could cost you about AUD 40-50 per person, but you can easily pay up to AUD 9 for a beer or AUD 15-20 for cocktails if you’re in the city.
9. Summary: Average Monthly Cost of Living
It can easily vary depending on where you’re living, but for someone living in a major Australian city, your typically monthly budget could look something like this:
- Rent (1-bedroom in the city centre): AUD 1,500 – 2,500
- Groceries: AUD 400 – 600
- Transportation: AUD 150
- Utilities and internet: AUD 220 – 270
- Dining and entertainment: AUD 250 – 500
- Private health insurance (if needed): AUD 150
All this will set you back around AUD 3,000 – 4,500 per month, and that’s not even including tax.
Conclusion
Are you a non-resident and looking to start a new life in Australia? Whether you’re purchasing a second home or investment property, you’ll need to secure a mortgage. So, make sure you utilise Upscore’s Finance Passport – you can connect with a range of expert brokers, helping you find the best possible loan terms. Get started today and explore your options!
