Cost of Living Comparison

The cost of living in Australia in 2025-26

Australia is consistently ranked among the most expensive countries in the world to live in, with Sydney typically sitting in the global top 15 and Melbourne, Brisbane and Perth not far behind. But the headline figures hide huge variation: the same household budget can stretch comfortably in Adelaide or Hobart while feeling tight in inner Sydney. New migrants tend to be hit hardest in the first 6-12 months, when one-off setup costs (bond, furniture, car, school uniforms) layer on top of normal weekly spending.

The biggest single line item for almost everyone is housing - rent or mortgage payments typically swallow 25-40% of after-tax income. Beyond that, expect groceries, transport, utilities, and healthcare to be the next four largest categories for most households.

What you'll typically spend each week

Sources: ABS Household Expenditure Survey, SQM Research rental data, AEMC retail electricity report, indicative 2025 figures.

How the major cities compare

• Sydney - most expensive city in Australia, mainly because of housing. A one-bedroom in the inner city often clears $700/week. Public transport is excellent; eating out is pricier than other cities.
• Melbourne - slightly cheaper than Sydney across the board. Strong public transport, cheaper rent in the middle ring, very competitive grocery and dining scene.
• Brisbane - 15-25% cheaper than Sydney for rent. Warmer climate means lower heating costs but higher cooling costs. Smaller public-transport network outside the inner ring means a car is more often essential.
• Perth - middle of the pack on cost; isolation pushes up some imported-goods prices. Mining-sector wages push up the upper end of the rental market.
• Adelaide - consistently the most affordable mainland capital. Rent and groceries notably cheaper, smaller job market.
• Hobart - once cheap, now mid-range due to interstate migration. Cold winters mean significant heating costs.
• Canberra - high incomes and high housing costs; lots of public servants on stable salaries.
• Darwin - humid climate drives high air-conditioning bills; food can be more expensive due to freight.

One-off setup costs to budget for

If you're arriving fresh, factor in these typical first-month costs on top of your weekly spending:

• Rental bond - 4 weeks rent (most states), held in a state-government bond board
• Two weeks rent in advance - paid at lease signing
• Furniture and homewares - $2,000-$8,000 for a starter setup (IKEA, Facebook Marketplace, Kmart)
• Utility connections - $50-$200 in setup fees across electricity, internet, gas
• Car (if needed) - $8,000-$25,000 for a used car, plus rego ($800/year), CTP insurance, comprehensive insurance ($800-$1,500/year)
• Health cover (temporary visa holders) - OVHC or OSHC, $90-$250/month
• School uniforms and supplies - $500-$1,500 per child for the first year

Frequently asked questions

What salary do I need to live comfortably in Australia?

Rough rule of thumb for 2025-26: a single person needs $65,000-$80,000 gross to live comfortably in a capital city. A couple with no kids needs around $110,000-$140,000 combined. A family of four typically needs $140,000-$180,000+ combined to live without significant strain. These figures are higher in Sydney and lower in Adelaide/Hobart.

Are groceries really more expensive than back home?

For most migrants from Asia, the UK, and continental Europe, yes - fresh produce, dairy and meat run 20-60% higher than in their home country, with the gap widening if you compare to discount supermarkets there. The two majors (Coles, Woolworths) charge similar prices; Aldi tends to be 15-25% cheaper for branded staples; Costco is good for bulk buys. Asian grocers, butchers, and farmers' markets often beat supermarket prices on fresh items.

Do I need a car?

In Sydney and Melbourne, you can live car-free in inner suburbs and most middle suburbs. In Brisbane, Perth, Adelaide and outer suburbs of Sydney/Melbourne, a car is almost essential. Running a small to mid-size car typically costs $7,000-$12,000/year all-in (fuel, rego, insurance, servicing, depreciation, parking). Compare against public-transport monthly passes (~$160-$220) and occasional rideshares before committing.

What about healthcare costs for visa holders?

If you're a permanent resident, NZ citizen, or your country has a Reciprocal Health Care Agreement with Australia (UK, Ireland, Sweden, Netherlands, Belgium, Finland, Italy, Malta, Norway, Slovenia), you can use Medicare. Otherwise, you must hold private health insurance - Overseas Visitor Health Cover (OVHC) for work and family visas or Overseas Student Health Cover (OSHC) for students. Cheap singles policies start around $90/month; family cover with extras can run $300+/month. See our Medicare vs OVHC guide for details.

How do I save money in the first year?

The fastest wins are: pick a suburb on a train or tram line so you can skip the car, buy second-hand furniture on Facebook Marketplace, switch to Aldi for staples, lock in a fixed-rate electricity plan, and use Tap-and-Go transport caps (most cities cap your daily/weekly spend on public transport). Build an Australian credit history early by using a small credit card and paying it off - it'll save you on rent applications and future loans.

What this estimate doesn't include

• Childcare and education - daycare can be $130-$200/day before subsidies; private schools $15,000-$45,000/year
• Pet costs - vet care, registration, food, insurance
• Travel - domestic flights, trips home, family visits
• Major purchases - appliances, electronics, furniture beyond starter setup
• Tax and superannuation - covered in our tax calculator
• Visa-related expenses - renewals, NAATI tests, English tests, medical exams

For up-to-date market figures, check the ABS Consumer Price Index and SQM Research's monthly rental reports.