Is Australia expensive? Cost of living and travel budget guide (2024)

Thinking about a trip to the Land Down Under, but wondering "is Australia expensive?" Whether you're dreaming of kangaroos hopping through your backyard or picturing yourself surfing at Bondi Beach, cost considerations are crucial.

Australia isn't your run-of-the-mill destination when it comes to expenses. From the bustling streets of Melbourne to the awe-inspiring landscapes of the Outback, this country offers a unique blend of adventure and relaxation.

Let's break it down: Yes, Australia can stretch your budget, but it's all about perspective. Although is definitely not the cheapest option for a getaway, with a bit of savvy planning and insider knowledge, you can experience the best of Australia without breaking the bank.

We'll uncover tips on how to make the most of your Aussie adventure. Get ready to discover why Australia's price tag shouldn't deter you from experiencing its incredible charm and beauty!

Suggested reading:6 reasons to visit New South Wales, Australiaand15 interesting facts about Australia you didn't know.

Is Australia expensive? A closer look at costs

The high standard of living in Australia is tempting to many, but this quality of life comes at a price.

According to Expatistan, a collaborative cost-of-living database based on crowdsourced data from locals, Australia is the 9th most expensive country to live in out of 66.

To get a better understanding of living costs in Australia, let's zoom in on some key spending categories.

All prices are expressed in Australian Dollars (AUD). The current exchange rate is USD 1 = AUD 1,50 (check the latest rate at xe.com).

Housing

If "is Australia expensive?" is the question, housing might be the loudest "YES". Rental prices in Australia, particularly in big cities, are notorious.

Rent prices in Australia vary significantly across different cities, with Sydney and Melbourne being the most expensive.

In Sydney, the average rent for a one-bedroom apartment in the city center is approximately AUD 2,800 per month, while in suburban areas, it drops to around AUD 2,000.

Melbourne follows closely, with central city rents averaging AUD 2,400 per month and suburban rents about AUD 1,700.

Other cities, such as Brisbane, Perth, and Adelaide, offer more affordable options. In Brisbane, the average rent for a one-bedroom apartment in the city center is about AUD 1,900, whereas in suburban areas, it is around AUD 1,400. Perth and Adelaide are even more economical, with city center rents averaging AUD 1,700 and AUD 1,500 respectively, and suburban rents around AUD 1,200.

The rental scene is especially difficult for many essential workers like nurses, teachers, and aged care workers. In fact, the Anglicare Australia's 2023 report painted a stark picture. In capital cities, those working in essential roles are often left spending a huge portion of their income - sometimes over 80% - on rent. This includes their utility bills.

Food

For a casual meal at a mid-range restaurant, you can expect to spend about AUD 20-35 per person. If you’re grabbing a quick bite at a fast food chain, the cost is around AUD 10-15. Dining at a fancy restaurant for a special occasion might set you back approximately AUD 70-120 per person, but the experience and quality can make it worthwhile.

When it comes to groceries, a single person typically spends around AUD 300-500 per month, depending on dietary habits and preferences.

In 2023, Aussies dealt with serious grocery price surges. Terms like “Shrinkflation” and "Cossie Livs" (cost of living) made it into everyday conversations to express the shared feeling of getting less for the same - or even higher - price.

Transportation

Though big Australian cities generally have well-developed public transport networks, a lot of people still rely on their vehicles. You can save money by using budget transportation options in Australia like Greyhound bus passes.

Public transportation in major cities like Sydney, Melbourne, and Brisbane is efficient and well-connected. A monthly public transport pass typically costs around AUD 150-200, providing unlimited travel on buses, trains, and trams within the city. For occasional trips, single fares usually range from AUD 3-6, depending on the distance traveled and the city.

But, the costs don't stop at the ticket price. Petrol prices average about AUD 1.60-1.80 per liter, though this can fluctuate with global oil prices and regional variations (remote areas have some of the highest fuel prices in the world). Car ownership also involves expenses such as insurance, registration, and maintenance, which can add up to around AUD 1,000-2,000 annually. On the other hand, secondhand vehicles can be quite cheap and stress free to purchase.

Cycling is a popular and cost-effective alternative, especially in bike-friendly cities like Melbourne and Adelaide, where dedicated bike lanes make commuting safer and more enjoyable. Additionally, ride-sharing services like Uber and Lyft offer convenient options for getting around without the need for a personal vehicle, with typical fares ranging from AUD 10-30 for short to medium distances.

Utilities

In Australia, monthly utility costs for a single person are generally reasonable and manageable if we compare them with those in USA or Western European countries. On average, electricity and gas bills combined typically range from AUD 100 to 150 per month, of course depending on usage and the season. Energy-efficient habits and appliances will definitely help keep these costs lower.

Water bills are generally affordable, averaging around AUD 30-50 per month. Many rental properties include water usage in the rent. Internet and phone plans vary widely, but you can expect to spend about AUD 60-80 per month for a decent broadband connection and a mobile plan with sufficient data and call allowances.

If you’re living in an apartment, strata fees might cover some utility costs, particularly for water and common area maintenance, providing further convenience. It’s also worth noting that many Australian homes benefit from abundant natural light, reducing the need for artificial lighting and helping to keep electricity costs down.

Entertainment

From live gigs to that evening beer, everything adds up when you're looking at the cost of entertainment in Australia. With beers priced around AUD 10 each, those bar tabs grow quickly. Although, if you can find local backpacker bars or happy hour deals (often offering 50% discounts), you can shave some dollars off your drinking adventures.

In the country's cultural hubs -Melbourne and Sydney-, a single person might spend around AUD 200 - 300 per month enjoying various activities. Catching a movie in a standard cinema typically costs about AUD 20 per ticket, while theater and concert tickets range from AUD 50 to 150, depending on the event and seating.

A night out at a live music venue might cost around AUD 30-60, including drinks. If you’re a sports fan, attending an AFL gamecan be an exhilarating experience, with tickets starting at about AUD 25-50.

These cities are packed with festivals, markets, and free events, offering endless entertainment options. The dynamic lifestyle and abundance of entertainment options contribute to Melbourne and Sydney consistently ranking among the world's most livable cities.

While entertainment in Australian cities can be pricey, there are plenty of free activities to enjoy. Public parks and beaches offer great spots for picnics, barbecues, and outdoor sports. Big cities host free festivals, markets, and street performances throughout the year, whereas museums and art galleries often have free entry days or sections. Tourist information centers are excellent resources for discovering free activities, and websites like Time Out and official city tourism pages regularly update free events and attractions. With a bit of planning, you can enjoy Australia’s vibrant culture without breaking the bank.

How to live or travel in Australia on a budget

Now that we've seen just how expensive Australia can be, are there ways to experience the country without going completely broke? Don't worry, savvy traveler - there are. Let's explore different ways to save money in Oz:

Cook your meals

Eating out is quite expensive in Australia, even for quick fast food bites. You'll be saving a lot on food by cooking your meals, so look for accommodations that have a kitchen (most hostels and Airbnb's do).

Also, get the member's discount cards from supermarkets and look for the products with the "reduce to clear" tag, which can save you up to 60% of the original price.

Saving money on accommodation

Couchsurfing is a great platform for meeting locals and finding free accommodation. By opting for Couchsurfing, you eliminate the nightly hostel expense, freeing up cash for unforgettable experiences.

This also lets you get a more immersive look at local culture, learning from your hosts about hidden gems and unique perspectives.

Also,consider house sitting through platforms like Aussie House Sitters. This allows you to stay in locals’ homes for free while taking care of their pets or plants.

Another great option is staying in holiday parks or using campervan rentals, which often come with kitchen facilities.

Find a local Sim

Don’t overpay for data while exploring Australia. Grab a local SIM card from Optus or Boost for great deals and reliable coverage across the country. This will help you save money in the long run.

Try work exchange programs

Look into the exciting world of work exchange in Australia. This is a popular option to cut down expenses, and a great way to get a more immersive experience.

Worldpackers connect you with hostels, homestays, farms, NGO's, animal shelters, and a wide range of different local projects that offer free room and usually board and other perks (like free tours or activities) in exchange for a few hours of help per day.

To participate, you need to create a profile for free at the Worldpackers Community and start saving your favorite volunteer positions, until you are ready to get verified.

Think of it as traveling slow, immersing yourself in the local culture, forming connections, developing new skills, and possibly deciding if a move Down Under is really in the cards.

Learn more about these programs:What is a work exchange and how does it work? andTraveling with Worldpackers: your top questions answered.

Saving money on transportation

Since getting around this vast country can get pricey, find smart ways to split costs.

Search for car shares through websites like Gumtree and Jayride or check for ride offers on hostel message boards.

One fantastic way to save on transportation is by using relocation deals. Companies need vehicles moved between cities and offer heavily discounted or even free rentals. Websites like Transfercar and Coseats list these opportunities, providing a cost-effective way to explore Australia’s stunning landscapes.

Seek free and cheap thrills

Australia's blessed with natural beauty, much of which comes free. Embrace sun-soaked beaches, sprawling national parks, and vibrant markets without breaking the bank.

Many cities offer free events, from open-air cinemas to local festivals - a great way to experience authentic Australian culture.

Take advantage of free walking tours in major cities. These tours are led by knowledgeable guides who work for tips, making them a budget-friendly way to learn about the history and culture of places like Sydney, Perth and Melbourne.

Cost of living in Australia by city

Here’s a glimpse at the average monthly expenses in popular urban hubs, revealing which ones might let you live a bit more lavishly or make you watch your dollars carefully.

Let’s be real – most people want to live in Melbourne or Sydney, but these are the priciest cities, specially when it comes to rent. A really nice and livable place is Perth, but most newcomers are deterred by its isolation, being thousands of kilometers away from any other major city. That makes Brisbane a popular choice, a cheaper city than Sydney and Melbourne, more "exciting" than Adelaide and -definitely- Canberra, and more conveniently located than Perth.

These is the average monthly cost of living for a single person in Australia's major cities:

• Sydney

In Sydney, the average monthly cost ranges from AUD 2,500 to 3,500, making it the priciest due to high rent and entertainment expenses. However, its iconic landmarks, beautiful beaches, and vibrant nightlife justify the cost for many.

• Melbourne

Melbourne is slightly more affordable, with costs averaging AUD 2,300 to 3,200 per month. Known for its cultural richness, coffee culture, and arts scene, Melbourne provides a dynamic urban experience at a somewhat lower price than Sydney.

• Brisbane

Brisbane is a bit more budget-friendly, with monthly living costs around AUD 2,000 to 2,800. Its subtropical climate, outdoor activities, and growing job market make it an attractive and livable option for many.

• Adelaide

Known for its relaxed lifestyle, festivals, and wine regions, Adelaide offers an average monthly cost of AUD 1,800 to 2,500, making it one of the most affordable major cities. The city’s charm and lower cost of living appeal to those seeking a more laid-back pace of life.

• Perth

Perth (photo below), with its stunning beaches and outdoor lifestyle, averages about AUD 2,000 to 2,800 per month. While rent can be high in central areas, the overall cost of living remains reasonable, especially with the city’s natural beauty and vibrant community life.

Is Australia expensive? FAQ

Before we conclude, let's answer some question that you may have in mind regarding living and traveling in Australia:

Is Australia more expensive than USA?

Whether Australia is pricier than the USA really depends. Accommodation, especially in cities like Sydney and Melbourne, often exceeds US costs, as does the price of dining out. This means that whether Australia or the US is more expensive really depends on which parts of both countries you’re looking at, and your personal spending habits.

Things like healthcare and education tend to be cheaper in Australia thanks to universal healthcare and subsidized university costs for Australians. You may find that you pay less for basic utilities, such as gas and water, in some areas.

Is Australia expensive for tourist?

It depends on your travel style, really. Activities, tours, and accommodation in tourist hotspots will add up. To put it into context, a backpacker's budget can be about USD 100 per day on average, staying at shared dorms of hostels. Of course, you can spend less than that or much more.

To enjoy Australia affordably, explore local markets, free events, breathtaking national parks, and those beautiful free-to-access beaches.

Is it really expensive to live in Australia?

If we're being honest, yes. Although Australians have high average incomes, costs like housing, groceries, and utilities continue to rise. Over half of Australians admit they have to cut back on necessities to keep up with soaring prices. The consumer price index has been steadily rising.

Outside of the major cities, an annual salary ranging from AUD 70,000 to 80,000 could generally support a single person living 'comfortably,' though the interpretation of this term varies among individuals. In expensive areas like Sydney or Melbourne, expect this to be higher.

So, is Australia expensive? Definitely not the most budget-friendly destination out there, particularly compared to Southeast Asia, South America, or even parts of Europe like the Balkans.

However, thoughtful planning lets you have a fantastic Australian adventurewithout selling a kidney. Luckily, much of what Australia offers, like the mesmerizing beaches and national parks, is free.

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