Welcome to the land of the lowlands, famous for its breathtaking landscapes, vibrant cities and laid-back lifestyle. But what about the cost of living in Australian cities? Living in Australia may be a dream come true for many, but it is not without financial considerations. Understanding the average monthly cost of living in Australia can help prospective residents prepare financially, as costs vary significantly depending on location, lifestyle and family size. From housing and groceries to healthcare and education, understanding basic Australian household costs is crucial for anyone looking to call this sun-kissed country home.
In this blog post, we’ll explore the different aspects of Aussie life from a financial perspective. If you’re a blue-collar worker who dreams of living in Australia to work and make a living, understanding the monthly costs of living in Australia for a single person is crucial to your relocation planning and settling in. We’ll help you navigate Australia’s financial landscape, providing practical insights to make your dreams of living and thriving in this beautiful country a reality.
Original take
*Rents are high, especially in cities like Sydney where the average rent is $750 per week. Property prices are also higher in major cities than in rural areas.
*The average quarterly electricity and gas bills are around $317 and $181, respectively. The average monthly water bill for a single person is $74, while internet costs around $70 per month.
*Australians spend around $160 per week on groceries. Costs vary by state, with factors such as location and family size affecting costs.
*Public transport fares have increased, with the daily cap for a full fare in Victoria at $10.60. Owning a car includes significant costs such as fuel and maintenance, with households spending around $354 per week on transport.
*Medicare covers basic healthcare needs, but private insurance is common for additional coverage. The cost of education varies widely, with public schools costing about $83,869 for kindergarten through 12 years, and private schooling being significantly more expensive.
Cost of living in Australia
As we look ahead, the cost of living in Australia is expected to continue to rise in 2024, with housing, utilities, and grocery costs among the top financial considerations for residents. It’s important to account for these costs when planning your move or settling into Australian life. Many cities have already seen significant increases in rent and other basic expenses, making it important to budget accordingly.
Housing costs
Housing is a major contributor to the monthly cost of living in Australia for a single person, with rental prices varying significantly in major cities such as Sydney, Melbourne and Brisbane. For professionals in white collar jobs in Australia, cities such as Sydney and Melbourne are often the top choice due to their thriving economies and employment opportunities. However, high rent prices in these areas are a significant consideration.
When planning your budget, it is important to understand what a good salary is in Australia for a family of 4 so that you can cover basic expenses such as housing, groceries and transport. This is essential for those asking, "Is Australia expensive?", as this will depend on the city you want to live in and the lifestyle you want to maintain. In major cities such as Sydney and Melbourne, higher salaries may be required due to the cost of living, whereas in regional areas lower salaries may be sufficient.
Rental price
The rental market has seen significant growth in Australia’s major cities. As of 2024, the average rent for both houses and units across Australia was around $580 per week, a significant increase on the previous year. This increase is attributed to factors such as tight rental supply, Reserve Bank rate hikes and overseas migration.
Of the capital cities, Sydney emerged as the most expensive city to rent a home, with weekly rents at $750. This is particularly challenging for those working in Australia, who may find housing costs in major cities to be a significant part of their expenses. In contrast, rents in regional areas have experienced relatively flat growth rates.
In the December quarter, rent growth was higher in major cities than in regional areas. However, there are signs that rent growth is slowing. For example, CoreLogic’s report highlighted that rent growth in capital cities was higher than in regional markets, although both showed a slight slowdown in growth rates.
|
Region |
House (Weekly
Rent) |
Unit (Weekly
Rent) |
|
Sydney |
$750 |
$700 |
|
Melbourne |
$570 |
$550 |
|
Brisbane |
$620 |
$590 |
|
Perth |
$650 |
$550 |
|
Adelaide |
$570 |
$520 |
|
Canberra |
$685 |
$570 |
|
Hobart |
$560 |
$470 |
|
Darwin |
$650 |
$550 |
|
Regional Areas |
|
|
|
New South Wales |
$550 |
$460 |
|
Victoria |
$480 |
$420 |
|
Queensland |
$595 |
$450 |
|
Western Australia |
$600 |
$460 |
|
South Australia |
$395 |
$350 |
|
Tasmania |
$460 |
$400 |
|
Northern Territory |
$460 |
$350 |
Utility Bills
Groceries and Food Expenses
Transportation
Public Transportation
|
Area |
Transportation |
Average Fare Rates |
|
Sydney |
Trains, buses, ferries, and light rail |
The
Opal card is used for payment across all modes. Daily cap of $16.80 for
adults on weekdays, and $8.40 on weekends and public holidays. A single trip
fare in the city center is approximately $3.61 for adults. |
|
Melbourne |
Trains,
trams, and buses |
The
Myki card is used for all public transport services. A 2-hour fare in Zone 1
costs $4.60, with a daily cap of $9.20. On weekends and public holidays, the
daily fare is capped at $6.70. Free tram rides within the Free Tram Zone in
the city center. |
|
Brisbane |
Buses, trains, ferries, and CityCats (river
ferries) |
The
Go Card is used for payment, and fares depend on the number of zones
traveled. A typical 2-zone journey costs around $3.31 for adults using the Go
Card, with a daily cap of $9.20. |
|
Toowoomba, QLD |
Buses operated by Bus
Queensland |
Fares range from $2.50
to $3.50 for a single trip, depending on the distance traveled. |
|
Dubbo, NSW |
Buses |
A single trip costs
around $2.20 to $3.30. Tickets are purchased directly from the bus driver. |
|
Ballarat, VIC |
Buses |
The Myki card system is
used, similar to Melbourne. A 2-hour fare within Ballarat costs around $4.60,
with a daily cap of $9.20. Concession rates are available for eligible
passengers. |
Private Vehicle Costs
The cost of owning and operating a private vehicle in Australia can be significant. This includes expenses like car loan repayments, fuel, insurance, registration, and maintenance. In the first quarter of 2021, the average Australian family spent about $354 per week on transportation, including cars and public transport. This marked a 14.3% increase from the previous quarter.
Fuel costs vary by city, with prices per litre for unleaded fuel ranging approximately from 140.9 to 175 cents across different cities.
Education and Schooling Costs
The cost of education in Australia varies significantly based on the level of education and the type of institution chosen. From preschool to higher education, families can expect to incur a range of expenses.
Preschool and Kindergarten: These early years often involve costs for enrollment, materials, and, potentially, tuition, depending on the type of institution.
Primary and Secondary School: For government (public) schools, there are usually basic fees and additional costs for uniforms, books, excursions, and extracurricular activities. Private school fees are substantially higher and can vary widely.
Higher Education: University or vocational education costs include tuition, textbooks, and often additional fees for facilities, student services, and other campus amenities.
Public vs. Private Schooling Expenses
Public Schooling: The national average cost of a government education in Australia is around $83,869 for the entirety of a child’s schooling from kindergarten through year 12. This includes costs like uniforms, excursions, and other school-related expenses beyond just tuition.
Private Schooling: Private schooling expenses are significantly higher. The national average for Catholic education is about $143,944, while independent school education averages at $349,404 for the total schooling period. These costs are inclusive of tuition, uniforms, extracurricular activities, and other associated expenses.
In 2024, families with children in high-fee private schools experienced the largest fee increases, which were above inflation rates. This was partly due to government policies that provide lower subsidies to institutions with wealthier parent bodies. In Sydney, for example, private schools in the eastern suburbs are charging a median fee of $42,000 in 2024.
Healthcare Expenses
Understanding Medicare
Medicare is Australia’s universal healthcare system, providing a range of medical services to all Australian citizens and most residents. It covers treatments received in public hospitals, consultation fees for doctors and specialists, certain pathology tests and X-rays, eye tests by optometrists, most prescription medications, and mental health care. For those working in white collar jobs in Australia, employers may offer additional benefits, such as private health insurance subsidies, which can help manage the rising medical costs. Understanding these options is key to financial planning.
Private Health Insurance
Private health insurance in Australia offers comprehensive coverage for specific medical requirements not covered by Medicare. This includes fees and costs of private hospitals, ambulance cover, out-of-hospital expenses, pregnancy, dental, and various specific medical treatments. For those in blue-collar jobs, specifically top stonemason jobs such as CNC operators and stone polishers, understanding these healthcare options is crucial for managing their well-being and financial planning. Private health insurance typically covers three distinct areas: general treatment, ambulance, and hospital.
Private health insurance is supplementary to Medicare. Policyholders can claim services from both Medicare and their private insurance, depending on coverage. For instance, as a private patient in a public hospital, you can claim from both Medicare and your private insurer for covered services.
Typical Medical Costs and Impact on Average Workers
Medical costs in Australia have been affected by inflation and increased usage of hospital services, leading to higher health insurance premiums. Despite efforts to keep premiums low, the rise in medical and hospital service costs by 5.9% and a 9.6% surge in hospital admissions funded by insurers are significant factors. Private Healthcare Australia reported that health insurance premiums must rise to cover these inflating costs.
Eating Out and Restaurant Costs
Overview of Dining Out Expenses
In 2024, food prices in Australia are moderate when it comes to dining out, but many still wonder, “Is food expensive in Australia?” This question often arises due to the varying costs between budget-friendly and high-end dining options. While the exact cost can vary depending on the type of restaurant and location, budget-conscious travelers can enjoy a meal at a local budget restaurant for around $10 to $15 per person, which aligns with typical Australian prices for dining out. Mid-range restaurants may charge between $20 and $40 per person.
For those who opt for a more luxurious dining experience, the costs can be significantly higher. These prices are indicative of the general cost of eating out in Australia, which is comparable to other countries within the Pacific region, like New Zealand or French Polynesia.
While dining out or enjoying leisure activities, it’s also useful to consider small indulgences like the price of beer in Australia. On average, a pint of beer in a pub may cost around $8 to $12, depending on the location. In city centers, especially in areas with a high volume of tourists or nightlife, the price can be on the higher end.
Comparison with Home Cooking Costs
Comparing the cost of dining out to home cooking, it’s evident that cooking at home is generally more cost-effective. The average food cost in Australia per day is about $35 (AU$53) or the average cost of food per week for 1 person Australia is about AU$140, with an average meal cost in Australia around $14 (AU$21) per person when dining out. In contrast, grocery shopping and cooking at home can significantly reduce these costs, especially for families or individuals who dine at home regularly.
The Average Cost of Eating Out in Australia
Understanding the average cost of eating out in Australia can help manage your budget effectively. Dining out is a popular activity in Australian culture, and the costs can vary widely depending on the type of meal and location.
*Budget Restaurants: A meal at a budget restaurant typically costs between $10 to $15 per person.
*Mid-Range Restaurants: Meals here can range from $20 to $40 per person.
*High-End Dining: For a more luxurious dining experience, expect to pay significantly higher prices.
Overall, while dining out can be more convenient, cooking at home offers a more economical option for managing food expenses.