If you follow Australian news, then you would’ve noticed that almost everyday, they talk about inflation and the increasing cost of living in Australia. This obviously affects those of us who are already here but this can also be a cause of concern for those of you who are looking into migrating to Australia. It has always been an expensive country to be in. But now that it’s even more so, can you still afford to live in Australia?
How much would you need?
It would be hard to give a specific amount because there are many other things to consider such as your lifestyle, the number of people in your household, and where in Australia you’ll live. To help you figure out whether or not Australia is a place you can afford, I have listed the average costs of what would be your “basic expenses”.
Initial Costs
When you immigrate to another country, you would have to rebuild your life basically from scratch. The initial costs of setting yourself up can be quite expensive, specially if you’re yet to find employment. This is because you would have to spend on big ticket items such as a car and a place to stay.
With regards to purchasing a car, the price would obviously vary greatly depending on what kind of car you want, what is available in the market at the time and whether or not it’s brand new. Second hand cars should be cheaper. If you remember, I have mentioned in one of my blog posts before that we have once owned a car that only set us back $500. But that is a rare find so I would suggest allowing at least $5,000 for a car. And don’t forget the costs relating to getting your Australian driver’s license and of course, the car rego fee.
As for accommodation, there are more things that you should consider other than your weekly rent when calculating how much you would need to set up a home. You must also take into account your rental bond (usually four weeks worth of rent) as well as the furniture, appliances and other household stuff that you’d require.
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Rent or Mortgage
Without a doubt, property prices have sky rocketed in recent years. My rent, for example, has already increased 3 times in the span of 2 years. Whether you’d be renting or buying a property, a big factor that would play in the amount you’d have to pay is the location of the property. Some Aussie cities pay less than others.
Usually, the closer you are to the CBD (central business district), the more you’d have to pay, unless the said location has a bad reputation (i.e. high crime rate). The property type (unit, house etc.) would definitely make a difference as well. Below is a list of the average rent and house prices in different cities and states.
Rent
| City | Property type | Median rent (per week) | Property type | Median rent (per week) |
|---|---|---|---|---|
| Sydney | House | 550 | Unit | 470 |
| Melbourne | House | 430 | Unit | 365 |
| Brisbane | House | 450 | Unit | 365 |
| Canberra | House | 630 | Unit | 500 |
| Adelaide | House | 430 | Unit | 350 |
| Perth | House | 450 | Unit | 380 |
| Hobart | House | 495 | Unit | 400 |
| Darwin | House | 593 | Unit | 450 |
House Prices
| State | Median mortgage |
|---|---|
| Queensland | $516, 615 |
| New South Wales | $762, 238 |
| Australian Capital Territory | $549, 420 |
| Victoria | $629, 727 |
| Tasmania | $451, 438 |
| South Australia | $463,127 |
| Western Australia | $455, 563 |
| Northern Territory | $446, 091 |
Utility Bills
Two of the main variables when it comes to utility costs are the service provider that you use and your usage. Different providers charge different fees so doing a bit of a research to find the most cost effective option for yourself would do you good. And of course, using more of a utility usually means a more expensive utility bill. For example, people may need to pay more for electricity during summer and winter surge as they’d be using the air conditioning and heating solutions more often.
Electricity
| State | Average Bill (per annum) |
|---|---|
| Queensland | $1,172 |
| New South Wales | $1,424 |
| Australian Capital Territory | $1,348 |
| Victoria | $1,392 |
| Tasmania | $1,824 |
| South Australia | $1,488 |
| Western Australia | $1,168 |
Gas
| State | Average Bill (quarterly) |
|---|---|
| Queensland | $165 |
| New South Wales | $196 |
| Australian Capital Territory | $314 |
| Victoria | $224 |
| South Australia | $204 |
| Western Australia | $137 |
Internet and Mobile Service
The average Aussie household pays $71 per month for their internet/NBN plan. And on average, they pay $29 per month for their prepaid phone bill or $35 per month if they’re on a postpaid phone plan.
Food and groceries
Depending on the number of people in your household as well as the kind of stuff you buy at the supermarket, the budget that you’d need to allocate for your groceries can easily fluctuate. You can make it cost as much or as little as you want. You can save a bit of money by buying the cheaper brands and looking out for specials. But in saying that, I have noticed that many of the staples have increased in price.
| Household size | Average Grocery Cost (per week) |
|---|---|
| 1 | $104 |
| 2 | $144 |
| 3 | $178 |
| 4 | $203 |
| 5 | $235 |
Health Care
If you’re eligible for Medicare (Australia’s universal health care insurance scheme), then you normally wouldn’t have to pay to see a GP (General Practitioner) in a health care facility that bulk bills. However, you would have to pay out of pocket for health care services that aren’t covered by medicare such as dental and other specialist appointments. Which is why some people still get themselves a private health insurance cover as well.
According to Canstar, the average annual cost of a private health insurance policy is $2,218 for a person under 36 years old, $2,522 for those who are between 36 and 59 years old and $2,758 for people aged 60 years and over. Policies being offered by different health funds vary. They differ in how much they charge, what they cover and the amount they will pay.
Transport Costs
Your transport costs would depend on whether or not you’ll be using public transport or your own car. You’d also have to consider the distance you would be traveling on a regular basis. If you would opt to drive around, you’d first need to buy a car and then there’s the ongoing cost of refueling. Fuel prices have seen quite an increase over the year. From what I have observed, fuel are usually priced at around $2/L, give or take. You can check the most current fuel prices using apps like Fuel Map Australia.
As for public transport fares, you can check out the following sites for an estimate:
- Transport Canberra
- Transport NSW
- Northern Territory’s Public Transport
- Translink (Queensland)
- Adelaide Metro
- Metro Tasmania
- Public Transport Victoria
- Transperth
Education
If you or your children will be studying in Australia, then you have a huge expense ahead of you! But as with everything else in this list, the cost of education depends on numerous things such as your residency status, degree, and the school you’d attend.
How does your residency status affect your school fees? Well, school fees for international students are significantly higher compared to fees for domestic students. And of course, fees vary for different universities and different degrees. However, if we’re talking about primary or secondary education for your children, I guess the main difference lie in whether your child would be enrolling in a private or public school.
If you choose a private school, it can cost you around 20K to 42K per year (according to Exfin) depending on the school. Usually, catholic schools are less expensive. On the other hand, public schools’ term fees can cost around 1.3K per year (according to ABC ) and to some non-citizens it can amount to tens and thousand of dollars. Check out the Victorian Government Schools 2022 Standard International Student Tuition and non-tuition fees to get a better idea or just call your school of choice to get their specific fees.
You may also have to pay for uniforms, books, a tablet/laptop, shoes, and transport etc. If you would need child care or extra curricular activities for your children, then that’s something else you have to budget for.
Entertainment
According to The Guardian, Australian households, on average, spend $4.5K on entertainment every year. The amount is completely dependent on what sort of entertainment you like to do and how often you’d enjoy it. I’ll give you a couple of examples.
The base subscription fee for streaming services like Netflix and Disney+ is around $11 per month. It would be hard to give a specific amount for dining out but based on experience, eating in a pub or in an average restaurant would cost you around $70 for 2 people. Going for a movie date could set you back $55 for 2 movie tickets and a large popcorn and drink to share.
Conclusion
Based on the estimates above, around how much would your living costs in Australia be? Seems really expensive, doesn’t it? Although that may be the case, I still think that living a comfortable life in Australia is still doable with an average Australian income. I do have to say that Australian wages haven’t increased as much as the cost of living did but that’s a topic for another day. Anyway, people tend to adjust their living expenses to suit their wage.
Disclaimer All content and information in this post is for purposes of sharing my experiences only, does not constitute professional advice and does not establish any kind of professional-client relationship.
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