Moving to Australia definitely has a strong appeal from the above-average wages to the white sandy beaches and warm weather, but before you pack your bags, it’s important to understand the cost to live in Australia. From rent and groceries to transportation and healthcare, expenses can add up quickly. What is the cost to live in Australia? And what’s the average cost of living in Australia per year? Whether you’re planning a short stay or want to move permanently, this guide will break down what you need to budget for and how to make the most of your money Down Under.
Housing Costs in Australia
One of the biggest factors influencing the cost of living in Australia is housing. Where you choose to live can significantly impact your budget. Major cities like Sydney and Melbourne come with premium rental prices, while smaller cities and regional areas are far more affordable.
In 2025, here’s what you can expect to pay for rent:
- Sydney: Around AUD 3,400 per month for a one-bedroom apartment in the city centre.
- Melbourne: Approximately AUD 2,600 per month for a similar apartment.
- Brisbane: Around AUD 2,200 per month.
- Adelaide & Perth: More budget-friendly, with city-centre apartments averaging AUD 1,900–2,200 per month.
A popular way to lower housing costs is flat-sharing, especially in major cities where rent can be steep. Sharing an apartment or house with roommates can bring down the cost significantly, with a room in a shared flat averaging around AUD 250-400 per week depending on the city. This option not only reduces rent but also allows for shared utility bills, making overall expenses much more manageable. Most younger people opt to flat share as it reduces rend and is also a good way to meet new people.
Keep in mind that rent in Australia is often quoted weekly, which can be a surprise for newcomers. And if you’re looking to buy a home, be prepared for high property prices—Sydney’s median house price recently hit AUD 1.3 million, while Melbourne’s sits around AUD 950,000.
On top of rent, expect to spend AUD 250–350 per month on utilities, including electricity, water, and internet. Extreme weather in some areas can increase heating and cooling costs, so budgeting for seasonal fluctuations is wise.
Grocery and Food Expenses
The cost of groceries in Australia can feel steep, especially if you’re coming from a country with cheaper food prices. A typical grocery bill for a single person is around AUD 100–150 per week, while a family of four can expect to spend AUD 250–400 per week.
Ways to save on groceries:
- Shop at Aldi for budget-friendly staples.
- Visit local farmers’ markets for fresh produce at better prices.
- Buy in bulk at Costco or wholesale stores.
Eating out? A casual meal at a mid-range restaurant costs around AUD 25–40, while a coffee will set you back AUD 5–6. If you’re dining in Sydney or Melbourne, expect to pay a premium compared to smaller cities.
Transportation Costs
Public transport is the most budget-friendly option in Australia’s major cities. A monthly public transport pass costs:
- Sydney: AUD 180–220
- Melbourne: AUD 160–200
- Brisbane: AUD 150–180
If you prefer to drive, fuel prices in 2025 average AUD 2.10 per liter, and car ownership costs—including insurance, registration, and maintenance—can total AUD 450–600 per month. In cities like Perth and Brisbane, where public transport is less extensive, owning a car might be a necessity.
Healthcare and Insurance Costs
Australia’s healthcare system is excellent, but costs can vary depending on your visa status. If you’re a permanent resident or citizen, Medicare covers many medical expenses. However, private health insurance is recommended for additional coverage, especially for dental and specialist care.
Here’s a rough breakdown of healthcare costs:
- Doctor visit (without Medicare): AUD 80–100 per consultation
- Specialist visit: AUD 200+
- Private health insurance: AUD 150–300 per month, depending on coverage
Expats without Medicare should consider international health insurance to avoid high out-of-pocket costs.
Cost of Education in Australia
If you’re moving with children, schooling costs will be a major expense to consider when budgeting the cost to live in Australia. Public schools are generally free for permanent residents, but expats on temporary visas might need to pay tuition, which ranges from AUD 5,000–15,000 per year.
Private and international schools are significantly more expensive, with annual tuition fees between AUD 15,000–35,000, depending on the school and location.
Miscellaneous Costs & Lifestyle Expenses
Beyond the essentials, you’ll want to budget for everyday expenses and entertainment:
- Mobile phone plans: AUD 30–80 per month
- Gym membership: AUD 60–120 per month
- Streaming services: AUD 10–20 per month
- Entertainment & dining out: AUD 200–500 per month (depends on lifestyle)
Australia’s vibrant social scene means you’ll likely spend on weekend getaways, festivals, and outdoor activities. Budgeting for these costs ensures you can enjoy life here without financial stress.
The Average Cost of Living in Australia Per Year
So, what’s the average cost of living in Australia in 2025? Here’s a rough estimate for a single person:
- Rent (city centre): AUD 30,000–40,000 per year (AUD 19,000 – 22,000 for flatsharing)
- Utilities & internet: AUD 3,000–4,000 per year
- Groceries: AUD 5,500–8,000 per year
- Transport: AUD 2,000–5,000 per year
- Healthcare: AUD 2,500–6,000 per year (depending on insurance)
- Entertainment & lifestyle: AUD 3,000–6,000 per year
Total annual costs for a single person: AUD 50,000–75,000
For a family of four, this figure rises to around AUD 100,000–150,000 per year, depending on location and lifestyle choices.
Final Thoughts: Is Australia Expensive to Live In?
Australia isn’t the cheapest place to live, but it offers an incredible quality of life, stunning natural beauty, and plenty of opportunities. Understanding the cost to live in Australia and planning your budget accordingly will help you enjoy your time here without financial surprises.
If you’re strategic about where you live, how you shop, and how you travel, you can make life in Australia work within your budget. Whether you’re dreaming of beachside living in Sydney, the laid-back vibes of Brisbane, or the cultural scene in Melbourne, Australia has a place for everyone—just make sure your wallet is ready for the adventure!