The standard of living of a certain country doesn’t only depend on the level of income of the citizens but also on their purchasing power. So, how much does life cost in Australia and what’s the living standard in one of the most popular countries for immigration in the world?

LOCATION PLAYS AN IMPORTANT ROLE

The cost of living in Australia greatly differs based on where in Australia you live. Just like in the rest of the world, where the cost of living is different if you live in a big metropolitan city or a small rural town, the cost of living in Sydney is different to the cost of living in small regional towns. 

The cost of living in major Australian cities (Sydney, Melbourne, Brisbane, Perth) is much higher than in other parts of Australia. It’s also different among major cities, with Sydney being the most expensive city to live in. Because the cost of living in Sydney is higher than in other parts of Australia, salaries are also higher compared to other Australian cities.

HOW MUCH DO PEOPLE EARN IN AUSTRALIA?

According to the latest data from the Australian Bureau of Statistics, the average gross weekly income is 1800 AUD, or 7800 AUD a month. Salaries and wages in Australia are always advertised as gross income. So, in this case, the average net monthly income is 5800 AUD per person. To calculate your take-home pay, you can use one of the many salary calculators, like this one.

It’s important to note that this data only shows the average income and it can significantly vary among different Australian states (for example, salaries are much higher in New South Wales than Northern Territory) and industries. Salaries in some industries are siginifacntly higher than the average, while in others, are much lower than the average. If you’d like to find more information about earnings in Australia, click here.

Now that you know the average Australian salary, you can read more about the cost of living below.

ACCOMMODATION

Accommodation is definitely one of the biggest living expenses in Australia, especially in big cities where property prices and rent are increasing at a rapid rate. For this reason, many young people live with their parents or roommates. It’s not unusual for people to live in a share house with a couple of other people. Many people above 30 still live with roommates because few can afford to live by themselves. 

Buying a property is out of reach for many young people as property prices continue to rise on a daily basis. For example, the median house price in Sydney is currently 1 million AUD!

Just like property prices, rents are also on the rise. To rent a  studio near Sydney CBD, you’d currently have to pay 2000 AUD a month, while two-bedroom apartment would cost you 4800 AUD. 
Be mindful that rent in Australia is advertised weekly, not monthly! So, if you’re searching for a place to live and you see something advertised for $500, that’s the rent price per week.

GROCERIES

The latest research shows that the average Australian spends 600 AUD a month on groceries. Of course, this number largely depends on your eating habits and whether you’re a single person or have a family. Below you can find the average cost of some groceries:

• Bread: 4 AUD
• Milk (1L): 3 AUD
• 1kg of apples: 7.50 AUD
• 1kg of oranges: 6 AUD
• A small box of eggs (6 eggs): 5 AUD
• Chicken breast (1kg): 15 AUD
• Pork (1kg): 20 AUD
• Mince (500g): 10 AUD
• Beef mince (1kg): 15 AUD
• Water (1L): 2.50 AUD
• Coca-Cola (1L); 4 AUD
• Kinder Bueno: 2 AUD
• A box of cigarettes (Marlboro White): 54 AUD
• A bottle of wine (1L): 20 AUD
• A bottle of whiskey (Jack Daniels – 700 ml): 62 AUD

The above listed prices are indicative, so some groceries can cost more or less, depending on the brand you buy. If you’d like to learn more about the cost of groceries, you can check Woolworths and Coles websites, which are Australia’s biggest supermarkets.

BILLS

When it comes to bills, how much you spend on bills depends on many different factors, but below you can find average household monthly prices in Australia:

• Electricity: 120 AUD per month

• Gas: 65 AUD per month

• Water: 68 AUD per month

• Internet: 80 AUD per month

Electricity, water and gas are usually paid quarterly, while internet is usually paid each month. 

TRANSPORTATION

Australian cities are very spread out, so unless you live near the city centre, having a car is necessary. The nearest shop might be a 15-minute drive from your house, and your work might be 30 km away. This means you’ll probably have to use your car more than, for example, a person living in Europe. The average fuel price is currently 1.80 AUD per litre.

Public transport could cost you up to 200 AUD per month, depending on the city where you live. Unfortunately, public transport is not as good and efficient as in some other countries. Outside of major cities, it’s often non-existent, so having a car is a must if you want to get anywhere.

HEALTHCARE

Healthcare in Australia is not cheap. Although the government covers some of the costs for Australian citizens, there are many costs you need to pay out of pocket. For example, if you have to go to GP or do a blood test, most of the time, you won’t have to pay anything. But if your GP refers you to see a specialist, it can cost you anywhere between 200-400 AUD. Often the government subsidizes part of the cost for their citizens (mostly between 15-30%). 

Each specialist charges different prices for their services, so when you’re making an appointment, ask about the cost and if you have Medicare, ask if there’s any Medicare rebate. If there is, ask how much you’ll get back. This way, you won’t be surprised when you go to the doctor and find out you have to pay more than you expected. 

If you need to go to the dentist, it could cost you a lot of money, especially tooth extraction or root canal treatment. I had to pay 2000 AUD for root canal treatment, so imagine how much you’d have to pay for dental implants or prosthesis! Dental care can be really expensive in Australia, so many Australians choose to get their teeth fixed in Thailand. Even with all other costs, such as flight tickets and accommodation, it can still work out to be cheaper than fixing teeth in Australia!

However, the government covers a larger percentage of medical expenses (but not dental care!) for Australian citizens who belong to a lower socio-economic group or if they are a person with disability. For children up to 18 years old, the government covers dental services up to 500 AUD in a year, which is not much, considering one visit to the dentist can cost you that much! If you need to wear braces, this can cost you anywhere between 5000 – 15 000 AUD! Want to have nice teeth? Be ready to pay for that!

Luckily, most prescription drugs are covered by Medicare, and you only have to pay a small fee. I never had to pay more than 10 AUD. 

Besides public healthcare, Australian citizens can choose to pay for private healthcare insurance, which then covers most of their medical expenses and some dental services, such as yearly dental check-up. What costs are covered by private healthcare insurance depends on the type of cover you pick. That’s why it’s important to inform yourself about everything to make sure it’s worth paying for private health insurance. 

Non-Australian citizens must pay for private health insurance and don’t have access to Medicare. Only a few European countries have a reciprocal health arrangement with Australia and can access Medicare. So, if you’re not an Australian citizen or PR, check private health insurance here.

EDUCATION

Just like healthcare, education in Australia can be expensive. There are public and private schools, but many parents send their children to private schools to get better quality education. Tuition fees per year can range anywhere between 5000 to 35 000 AUD, depending on the school and its prestige. 

Attending university can be expensive too, but the Australian government offers student loans to Australian citizens (called HECS). Most students get HECS loans to pay for their degree. They don’t have to start repaying their HECS debt until they start working and earning above the HECS threshold. Once they start earning more than $51 549 per year, the compulsory repayments are taken out of their gross salary.

OTHER LIVING EXPENSES

Other living expenses mostly depend on your lifestyle, but here I’ll list some of the most common living expenses:

Monthly gym membership: 60 AUD 

Daily cost of childcare: 118 AUD (yes, daily! Childcare is very expensive!)

Haircut: 30 AUD for men, 60-200 AUD for women, depending on your hair length

Dinner in a low/mid budget restaurant (3 courses): 80 per person

Cinema ticket: 20 AUD

Pint of beer in a pub: 8 AUD

A glass of wine in a bar: 10 AUD

Coffee to go: 4 AUD

MacBook Pro: 3200 AUD

Based on the information above, what do you think about the cost of living in Australia? Do you think the average Australian is enough to cover the costs?

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