How Affordable is Life in the Land ‘Down Under’?
Hundreds of thousands of people immigrate to the land ‘Down Under’ every year. Many of them choose Australia because it has a strong job market and one of the best healthcare systems in the world.
Immigration has boosted the local economy, but the cost of living in Australia is on the rise. Whether Australia is an affordable place to be an expat will depend on your lifestyle and needs. Let’s dive into the country’s housing costs, grocery prices, and other key expenses you should know before you move.
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Is Australia Expensive?
Australia is the only country that’s also a continent, which means all products not produced in Australia must be imported from overseas. Commonly imported products include cars, crude oil and petroleum oil, smartphones, computers, and pharmaceuticals. As you can imagine, import taxes and duties contribute to the country’s cost of living.
Note: Throughout this article, we use Numbeo’s Cost of Living Index (CLI) data. You can use the CLI to compare and understand how the cost of living differs from one place to the next. Numbeo’s CLI uses the number 100 (the CLI for New York City) as a baseline. For example, if a place has a CLI of 110, that means it is 10% more expensive than New York City. If a place has a CLI of 90, that means it is 10% less expensive than New York City. All data in this article is up to date as of April 2024.
The Cost of Living in Australia vs the USA
The CLI for Australia is 72.8. Compare this to the current cost of living in the U.S., which is almost identical at 72.9. Both countries rank among the top 20 countries in the world for the highest cost of living, but Australia’s cost of living is slightly lower than that of the U.S.
Note that the cost of rent in Australia is 20% cheaper than what you’ll find in the U.S. – a striking difference. Otherwise, Australia’s consumer prices resemble what you’ll find in the States, coming in only 1.4% lower overall.
Read More: How to Become an Australian Citizen
What Are the Most Expensive and Cheapest Places to Live in Australia?
Aussies contend with one of the highest costs of living in the world, but some Australian cities are more affordable than others. Here’s a look at the top three most expensive cities in Australia, as well as the top three most affordable cities.
As a reminder, we use the cost of living index for New York City (100) as a benchmark for comparison. All data below is up to date as of April 2024.
Most Expensive Cities in Australia
The three Australian cities that have the highest cost of living are Sydney, Adelaide, and Canberra.
Sydney
The iconic sails of the Sydney Opera House have earned Sydney’s place as one of the most recognizable cities in the world. It’s also one of the most expensive cities in Australia. For some immigrants, the high cost of living is worth it for the higher quality of life – it’s a culturally diverse city, and the weather is always beautiful.
One of Sydney’s best features is the Darling Quarter, an impressive inner-city green space known for great food, fun nightlife, and a family-friendly park. The coastline, which includes the famous Bondi Beach, is perfect for surfing and soaking up the sun.
Sydney’s CLI is 71.5, which means it’s almost 30% cheaper than NYC.
Adelaide
Adelaide is conveniently located within a 30-minute drive of three wine regions and countless beaches, which may explain the city’s higher prices. More than 30% of the city is covered in green spaces.
In addition to Adelaide’s many parks and trees is a thriving bar and restaurant culture. Adelaide’s residents are pleasant and laid back, and the standard of living is excellent. The city is so walkable and spacious that some residents describe it as a small town with big-city amenities.
The CLI for Adelaide is 75.3. This is 25% less expensive than NYC but 4% more expensive than Sydney.
Canberra
Canberra, which has the highest cost of living in Australia, is the nation’s capital. Like Adelaide, Canberra is defined by wide open spaces and lush greenery. Many come here to enjoy the city’s famous hot air balloon rides, but it’s the low crime, minimal pollution, and family-friendly culture that convince them to stick around.
Canberra is not a beach city. However, it’s located near several lakes and rivers and is only a short drive from the coast. Adventurous foreigners will have plenty of outdoor activities at their disposal in Canberra – from fishing and kayaking to camping and mountain biking.
The CLI for Canberra is 78.9, making it the most expensive city in the country but still 20% cheaper than NYC.
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Most Affordable Cities in Australia
If you’re a budget-conscious expat, take a look at the three most affordable major cities in Australia: Perth, Brisbane, and Melbourne.
Perth
As the capital city of Western Australia, the sunny city of Perth is known for wineries, white sand beaches, and a lively arts and entertainment scene.
The people of Perth are friendly and welcoming, while crime rates are low. Excellent year-round weather and top-tier schools attract international students. Meanwhile, the local job market is growing, especially in the IT sector. This makes Perth a great choice for digital nomads.
The CLI for Perth is 69.3, making it 10% more affordable than Canberra and 30% more affordable than NYC.
Brisbane
Brisbane is the capital of Queensland and the third most populous city in Australia. The population tends to be younger and more energetic, and the weather is beautiful all year long.
Brisbane’s relative affordability and great schools have made it popular with international students, similar to Perth. It’s not as walkable as the other cities on this list, but the green spaces, art galleries, nightlife, and easy access to outdoor recreation more than make up for it.
The CLI for Brisbane is 66.3. That makes it more than 30% more affordable than NYC and significantly more affordable than the top three most expensive cities in Australia.
Melbourne
Melbourne is the capital city of Victoria and the most affordable major city in Australia. For a fraction of the price you’d pay to live in Sydney, Canberra, or Adelaide, you’ll find excellent fine dining and a booming art scene.
The city prides itself on its coffee and outdoor cafe culture. It’s not only walkable and bikeable, but features a strong and reliable public transportation system. Outdoorsy expats can look forward to spending time at Brighton Beach, joining a tai chi class in the park, or taking in the sites along the tree-lined running trails.
The CLI for Melbourne is 65.0, which is 35% cheaper than NYC and 13% cheaper than Canberra.
The Average Cost of Living in Australia
Australia’s growing job market and top-tier healthcare have led to a rise in immigration in recent years. Here’s a breakdown of how average living expenses for housing, food, entertainment, and transportation in Australia’s most expensive city (Canberra) compares to the average costs in Australia’s least expensive city (Melbourne).
All figures below are based on the U.S. dollar (USD).
Housing Costs in Australia
In general, the monthly cost of housing, electricity bills, and other utility bills in Australia is lower than in the U.S. Yet housing and utilities cost notably more in Canberra than they do in Melbourne.
| Canberra | Melbourne | |
| One-bed apartment in a city center | $1963 | $1543 |
| One-bed apartment outside a city center | $1546 | $1292 |
| Three-bed apartment in a city center | $3017 | $2900 |
| Three-bed apartment outside a city center | $2240 | $1924 |
| Utilities | $273 | $176 |
| Internet | $77 | $59 |
Food and Entertainment Costs in Australia
This section looks at how much it costs to dine at a restaurant, pay for recreation and entertainment, and shop for grocery staples at the supermarket in Australia’s most and least expensive cities.
| Canberra | Melbourne | |
| Lunch for two at an inexpensive restaurant | $60 | $38 |
| Dinner for two at a mid-range restaurant | $130 | $73 |
| Cost of a domestic beer | $8 | $7.20 |
| Cost of a pair of cinema tickets | $33 | $32 |
| Cost of a gym club membership | $72 | $57 |
| Eggs (dozen) | $4.98 | $4.20 |
| Milk (1 liter) | $1.98 | $1.57 |
| Chicken breast (1 kilo) | $9.63 | $9.48 |
| Bottle of wine (mid-range) | $15.24 | $13.44 |
| Rice (1 kilo) | $2.42 | $2.41 |
Transportation Costs in Australia
This is a snapshot of the average prices you can expect to pay for public transportation in Australia’s most and least expensive cities, as well as the cost to buy a car and purchase fuel.
| Canberra | Melbourne | |
| One-way ticket on local transit | $3.27 | $3.85 |
| Monthly pass for local transit | $124.30 | $137.00 |
| Cost to buy a new Volkswagen Golf | $32,300.00 | $29.400.00 |
| Cost to buy a gallon of gasoline | $1.50 | $1.40 |
Education Costs in Australia
Below is what you can expect to pay, on average, to put one child through private school in Australia. Note that the average annual tuition fees for an international primary school in Melbourne tend to be higher than in Canberra.
| Canberra | Melbourne | |
| Kindergarten (monthly) | $1980.00 | $1684.00 |
| International primary school (annual) | $15,972.00 | $21,036.00 |
Healthcare Costs in Australia
Australia has a public healthcare system called Medicare, which the Australian government funds through tax dollars. Unlike the publicly funded Medicare plans in the U.S., which typically cover people 65 or older, Australia’s Medicare is a universal program that provides medical coverage to every citizen and permanent resident regardless of age.
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Australia’s healthcare system also has a reputation for great patient outcomes, but wait times to see a doctor can be as long as several weeks or months. Also, Australian Medicare does not cover the cost of vision, dental, or ambulance services.
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Many immigrants in Australia opt to buy an international private health insurance plan. A private plan can increase your access to more and better-quality healthcare facilities, as well as reduce wait times. Learn more about Australia’s healthcare system.
Read More: Hospitals in Australia
Ready to Move to the Land ‘Down Under’?
Foreigners who plan to immigrate to Australia should keep in mind that air travel is necessary to reach other countries. Unlike Europe, where nearby countries can be quickly accessed by train or bus, you’ll often need to book airline tickets to visit any place overseas. For example, Australia’s closest neighbor, New Zealand, is more than 2,000 miles away.
Because many of Australia’s cities are located near the coastline, even domestic travel between cities can take a long time. Be sure to consider transportation costs, as well as other key costs like house prices, childcare, and healthcare, before you move to Australia.
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