Cost of Living

Cost of Living in Australia: A Newcomer Budget Guide

A practical guide to the cost of living in Australia, how expensive it really is, housing and rent, food and groceries, transport, healthcare and utilities

Reviewed by the GetInfoUs research teamLast reviewed: 2026-06Editorial policy

Flat illustration of Australian cost of living with houses, groceries and Australian dollars.

How expensive is Australia really?

Australia has a reputation for being expensive, and for newcomers that reputation is broadly fair, though the picture is more nuanced than a single number can capture. Wages are also relatively high, and a strong minimum wage means that many everyday workers can afford a comfortable standard of living that would be harder to reach elsewhere. The biggest factor in your personal cost of living is where you choose to settle. The major cities, especially Sydney and Melbourne, carry significantly higher housing costs than regional towns or smaller capitals like Adelaide or Hobart. Before you commit to a city, it helps to map your likely income against local rents and daily expenses rather than assuming the country is uniformly costly. Australia’s high quality of life, strong public services and good wages often offset the higher prices, but only if you plan your budget around the specific place you intend to live and work.

Housing and rent

Housing is almost always the largest item in an Australian budget, and rents in the big cities can take a substantial share of your income. Most newcomers rent before considering buying, and the rental market moves quickly, particularly in Sydney and Melbourne where competition for well-located apartments is intense. Sharing a house or apartment is extremely common among younger people and new arrivals, and it can dramatically reduce your costs while you settle in. When budgeting, remember that rent is usually quoted per week rather than per month, that you will normally need a bond (a security deposit) of several weeks’ rent upfront, and that utilities are often separate. Looking slightly further from the city centre, or choosing a smaller capital or regional area, can make a large difference to what you pay. Researching typical rents for your target suburb is essential, because the gap between neighbourhoods can be enormous.

Food, groceries and eating out

Grocery prices in Australia are reasonable if you shop sensibly, and the two large supermarket chains dominate the market and offer their own budget ranges that can keep weekly costs down. Buying seasonal fruit and vegetables, shopping at local markets, and cooking at home are the simplest ways to control your food budget. Eating out, on the other hand, is where costs add up quickly: cafes and restaurants are popular and the food culture is excellent, but regular dining out and daily takeaway coffees can quietly become a major expense. Many newcomers are surprised by how much they spend on convenience food and coffee in the first few months. A practical approach is to enjoy Australia’s vibrant food scene as an occasional treat while doing most of your cooking at home. Planning meals, buying in bulk for staples, and limiting impulse spending on takeaways can save a meaningful amount over a month.

Transport and getting around

Transport costs depend heavily on where you live and whether you need a car. In the major cities, public transport networks of trains, trams and buses are generally good, and using a rechargeable travel card for your daily commute is usually cheaper and more convenient than driving and paying for city parking. If you live in a regional area or outer suburb, however, a car may be essential, and you should budget not just for the vehicle but for fuel, insurance, registration and servicing, which together add up. Petrol prices fluctuate, and distances in Australia can be long, so running a car is a real ongoing cost. Cycling and walking are realistic options in many inner-city areas. When choosing where to live, factoring in your likely commute and whether you can rely on public transport can have a big impact on both your budget and your quality of life.

Healthcare, utilities and other bills

Australia has a strong public healthcare system, Medicare, which covers many costs for eligible residents and citizens, though new arrivals on temporary visas may need private health insurance until they are covered. Understanding your healthcare entitlements based on your visa is important, because medical costs can otherwise be a surprise. Beyond healthcare, regular bills include electricity, gas, water, internet and mobile phone plans, and these vary by provider, so it pays to compare and switch when better deals appear. Heating and cooling can push energy bills up depending on the climate of your city. Other recurring costs include any household contents insurance, streaming subscriptions and, if you have children, school-related expenses. Building these predictable monthly bills into your budget from the start, rather than focusing only on rent, gives you a far more realistic picture of what living in Australia will actually cost you each month.

Practical tips to keep costs down

The newcomers who manage Australia’s cost of living best tend to be deliberate about a few key choices. Choosing your city and suburb with your budget in mind is the single most powerful decision, since housing dominates everything else. Sharing accommodation, at least at first, spreads costs and helps you learn the area before committing to a place of your own. Cooking at home, shopping with the supermarkets’ budget ranges and markets, and treating dining out as occasional rather than routine all help significantly. Using public transport where possible avoids the steady drain of running a car. Comparing providers for energy, internet and phone, and reviewing those bills periodically, prevents you from overpaying out of habit. Finally, giving yourself a financial buffer for the first few months, when setup costs like bonds and furnishing add up, reduces stress. With sensible planning, Australia’s high wages and quality of life can comfortably outweigh its higher prices.

Frequently asked questions

Which Australian city is the most affordable?+

Generally the smaller capitals and regional areas are more affordable than Sydney and Melbourne, which have the highest housing costs. Cities like Adelaide or Hobart, and many regional towns, tend to offer lower rents. Because housing dominates your budget, your choice of city and suburb is the biggest factor in your overall cost of living.

How much of my income will rent take?+

Rent is usually the largest expense and can take a substantial share of income in the big cities. Remember that rent is quoted per week, you typically need a bond of several weeks’ rent upfront, and utilities are often separate. Sharing accommodation or living slightly further out can significantly reduce what you pay.

Is healthcare expensive in Australia?+

Australia has a strong public system, Medicare, which covers many costs for eligible residents and citizens. New arrivals on temporary visas may need private health insurance until they are covered, so it is important to understand your entitlements based on your visa to avoid unexpected medical costs.

Do I need a car in Australia?+

It depends where you live. In major cities, public transport is generally good and a travel card is often cheaper than driving and parking. In regional areas or outer suburbs a car may be essential, in which case you should budget for fuel, insurance, registration and servicing on top of the vehicle itself.

What is the best way to save money on food?+

Cooking at home is the biggest saver. Use the major supermarkets’ budget ranges, buy seasonal produce and shop at local markets. Eating out and daily takeaway coffees add up quickly, so treating dining out as an occasional pleasure rather than a routine keeps your food budget under control.