Hundreds of thousands of people immigrate to the land ‘Down Under’ every year. Many choose Australia because of its 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 rising.
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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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, 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 varies across places.
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 Versus 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 most expensive countries in the world, but Australia’s cost of living is slightly lower than the U.S.’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 are similar to those in the United States, with the gap at only 1.4% overall.
The Most Expensive and Cheapest Places 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 New York City cost-of-living index (100) as a benchmark for comparison. All data below is up to date as of April 2024.
The 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 is almost 30% cheaper than NYC’s.
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.
The 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, 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 year-round.
Brisbane’s relative affordability and strong schools have made it popular with international students, much like 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 it also has a strong, 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 sights 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 driven 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) compare 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 costs of housing, electricity, and other utilities in Australia are lower than in the U.S.
Yet housing and utilities cost notably more in Canberra than in Melbourne.
Expense
Canberra
Melbourne
One-bed apartment in the city center
$1,963
$1,543
One-bed apartment outside the city center
$1,546
$1,292
Three-bed apartment in the city center
$3,017
$2,900
Three-bed apartment outside the city center
$2,240
$1,924
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.
Expense
Canberra
Melbourne
Lunch for two at an inexpensive restaurant
$60
$38
Dinner for two at a mid-range restaurant
$130
$73
Domestic beer
$33
$32
Pair of cinema tickets
$2,240
$1,924
Gym club membership
$72
$57
Dozen eggs
$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.
Expense
Canberra
Melbourne
One-way ticket on local transit
$3.27
$3.85
Monthly pass for local transit
$124.30
$137
New Volkswagen Golf
$32,300
$29,400
Liter of gasoline
$1.31
$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.
Expense
Canberra
Melbourne
Kindergarten (monthly)
$1,980
$1,684
International primary school (annual)
$15,972
$21,036
Healthcare Costs in Australia
Australia’s healthcare system is known for its high-quality care and strong patient outcomes, supported by well-trained medical professionals.
The public system, known as Medicare, is funded through taxation and provides universal healthcare coverage to citizens and permanent residents of all ages, ensuring access to essential medical services nationwide.
However, wait times to see a GP or specialist can sometimes extend to several weeks or even months, particularly in high-demand areas.
Medicare does not fully cover services such as dental care, vision care, or ambulance transport, which can result in additional out-of-pocket expenses.
For this reason, many expats choose private health insurance in Australia to reduce waiting times, access a wider network of providers, and gain more comprehensive coverage. To help you prepare, here are the best international health insurance plans for expats moving to Australia, based on coverage, flexibility, and overall value.
Health Insurance Plans for Australia
Australia offers high-quality healthcare, but costs can add up quickly without the right coverage. While Medicare is available in some cases, many expats rely on private care for faster access and broader treatment options.
Coverage for expats who may not qualify for Medicare
Flexibility to match your cost of living and long-term plans
For All Nationalities Moving to Australia: Cigna Global Insurance Plan
Flexible coverage that adapts to Australia’s cost of living and your budget
Access to private healthcare and specialists across Australia
Optional modules to add outpatient, dental, and wellness benefits
Why it works for Australia:
Cigna Global is a strong fit for expats who want customizable coverage while managing monthly costs. You can start with core inpatient coverage and add benefits as needed, which is ideal in a country where private healthcare can be expensive but predictable.
For US Citizens Moving to Australia: BCBS Global Solutions Worldwide Premier
Comprehensive coverage with high annual limits for major medical expenses
Strong protection for pre-existing conditions (with prior coverage)
Access to top-tier private hospitals in Australia and worldwide
Why it works for Australia:
This plan is ideal for U.S. citizens who want maximum protection in a high-cost healthcare system. Private hospital stays, specialist visits, and ongoing treatments in Australia can be expensive, and Worldwide Premier helps remove those financial concerns with more complete coverage.
BCBS Global Solutions Worldwide Premier
Unlimited annual and lifetime coverage
Pre-existing conditions covered with prior insurance
For U.S. citizens abroad or foreign nationals in the U.S.
See What Health Insurance Costs for Your Move to Australia
Healthcare costs in Australia vary based on your visa, location, and coverage level. Get personalized quotes to understand your monthly premium and coverage options before you move.
Foreigners planning to immigrate to Australia should keep in mind that air travel is required 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.
Get a Health Insurance Quote
Get personalized health insurance recommendations based on your destination, length of stay, and coverage needs.
Sophie Pettit is Head of Content at ICI and brings extensive experience in content strategy and management within the expat and travel space. She has led major websites across Europe and Southeast Asia and creates content that inspires readers to explore with confidence.
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