The cost of living in Australia: Your ultimate guide (2018 Update)

If you’re like most of our clients, the cost of living in Australia is high on your list of concerns.

Why? Because you want to know that you can offer your family a better life. And that starts with knowing that your salary will be able to comfortably cover your expenses.

Of course the only way to know is to sit down and do the research. But it could take hours!

Unless…You simply read this article all the way to the end.

We’ve done all the research for you and compiled the average living costs right here. First up is salaries in Australia and then it’s time to look at:

• Housing
• Utilities
• Groceries
• Transport

Salary

As in all countries, salaries range by profession, experience and skill level. To get an idea of what you could earn in your job, have a look at the salary index on PayScale.

To see how much buying power this salary is likely to afford you, have a look at this article as well as this article by the Australian Bureau of Statistics.

Housing

You can choose to rent or buy a home in Australia. You might have to rent a home when you first arrive so let’s start there:

Renting:

Rental costs are influenced by a number of factors:

• The size and quality of the property.
• The region, city or neighbourhood the property is in.
• The distance from a large city or town, public transport and other facilities.

Generally speaking rent is lower in more rural areas as well as areas further away from major areas, public transport and other facilities.

Areas with the highest rent tend to be in Sydney, Melbourne and Darwin.

Here’s what you can expect from rental prices in these and other larger cities:

For specific pricing, and to research other areas, go to realestate.com.au.

Rental fees and deposits

You can expect to pay an agency a fee of one weeks’ rent for a six-month lease and two weeks’ rent of a one-year lease.

On top of this you’ll be expected to pay a month’s rent upfront as well as a deposit (or ‘bond’ as it’s called in Australia). This deposit is usually equal to between four and six weeks’ rent.

Buying:

In 2017, average house prices in Australia rose sharply, but 2018 has already seen a drop in prices due to cautious home buyers and stricter lending policies.

Here’s what average house prices looked like at the end of September 2017:

To do a tailored search, you can once again go to realestate.com.au.

Utilities

The main utilities for any home would be water and electricity. Of course an internet connection is also considered essential in this day and age.

Water:

Australia’s water tariffs are generally made up of two charges:

• A fixed-fee service use charge. This charge covers the supply of water to the home and connection ot sewerage systems.
• A variable water use charge. This charge is calculated on the actual amount of water used.

Your water usage will be priced per kilolitre (1000 litres). Some states used tiered pricing, i.e. the more water you use, the highter the rates your water will be charged at. You’ll also see some states add additional charges to water bills, such as the Northern Territory’s fixed daily charge based on the size of the meter or connection.

Many states vary water prices depending on the location of the property (city or a rural area). Other states apply the same water usage rates to all residents.

Here’s how the water usage tariffs compare between Australia’s three most-lived in states (priced per kilolitre):

• New South Wales: AUS$2.04
• Victoria: AUS$2.66 – AUS$3.86
• Queensland: AUS$0.76 – AUS$1.45

Electricity:

There are various electricity suppliers to choose from in Australia. It is also common to find houses with gas instead or electricity and gas combos.Electricity:

You can quickly and easily compare suppliers and prices for all options on iSelect.

Internet:

Australia’s large number of internet providers offers a wide selection of unique plans and connection options. You can have a look at all that’s on offer on iSelect and Compare Broadband.

Transport

While public transport is available in Australia, many Australians choose to own a car and drive where they need to be.

You might very well choose to buy a used car, but let’s look at prices for some new cars:

• Hyundai Veloster: AU$29 497
• Subara Forester: AU$36 990
• Kia Sportage: AU$44 402
• Ford Ranger Wildtrak: AU$58 950
• Ford Focus RS: AU$62 500

What about insurance and petrol?

Compulsory Third Party (CTP) Insurance is mandatory in Australia. It provides compensation for bodily injuries caused by vehicles but does not provide cover for any damage to the vehicle. It is thus advisable to also purchase another form of insurance.

To see how much you can expect to fork out for insurance, start with a search on comparethemarket.com.au.

As for fuel prices, it differs from one state or territory to another. The latest prices are available on the Australian AA site.

Groceries

The general rule is that local produce will be cheaper than imported items.

Numbeo is a great site if you’d like to see how much food items are in Australia. The site lists most of the items the average person will have on their shopping list, from milk and rice to chicken breasts, bananas and lettuce.

Keep this guide to the cost of living in Australia handy!

Why don’t you bookmark this page so that it’s easier to refer to? You can also use this article once you’re in Australia, which will make your settling period much simpler too.