All about the Cost of Living in Australia

The cost of Living in Australia varies by city. In general, as anywhere else in the world, metro cities like Melbourne, Sydney and Canberra are costlier as compared to smaller cities. A major part of the cost of living in Australia goes in toward renting a place to stay.

Below are some rough averages to give a high level view for monthly expenditures based on a family of 4 living in Australia. Please remember there will be variation depending on the area chosen live in, personal circumstances and the style of living.

The Big Mac Index of Australia as in January 2015 was $5.06 as compared to $5.69 for US, $5.90 for UK and 2.75 for India.

Average Expenditures

*All of the below amounts are in Australian Dollars

Rent

Rent for a 2-bedroom unit in major cities like Sydney and Melbourne ranges from $550 to $720 per week.

Renting an accommodation is through real estate agents and their fees is undisclosed & included as a part of the total rent. In most circumstances and upfront and refundable bond has to be paid. The bond is usually equal to between four and six weeks’ rent, and could be higher for furnished properties. To get a fair idea on rentals please visit realestate.com.au and check current listings in the area of your choice. The one time cost to furnish a 2 bedroom house with average quality furniture and basic appliances could be around $4000 to $8000.

Home and contents Insurance for rented accommodation is a cost borne by the owner. Premiums could start from around $90 per month. Always ask before renting a property.

Utilities and Internet

Monthly utilities (electricity, heating, cooling, water, garbage) for a 85 m² apartment cost around AU$350.

Internet plans start from around $70 per month.

Medical Insurance

Private medical cover is optional in Australia however most Australians have some level of Private medical insurance. Premiums could start from around $200 per month for policies that include the services of the doctors, dentist, and optician as well as any physiotherapy required. Basic hospital policies with are also available from $100 a month.

Eligible Australian Residents are also eligible for Medicare, which is an Australian Government sponsored healthcare system. Through Medicare, citizens and Permanent residents can avail free treatment in a public hospitals as well as reduced costs for out-of-hospital care.

Car Running Costs

After purchasing a car on an average car owners can expect to shell out an average of $3000 annually towards its running costs. This could include registration & compulsory third party insurance costing around $ 900 per year, between $1000 and $3000 annually for a comprehensive insurance policy and $500 towards servicing & maintenance. Additionally petrol costs around $2 per litre.

Mobile phones

Prepaid sim cards with free Australia wide calling and messaging with around 2 GB of internet per month are available starting from $30 a month. Similar options are available if you go for contracts and some providers will provide a limited number of international minutes free. A good place to get more idea is to visit whistleout.com.au/MobilePhones.

Most telecom companies offer free international calling to certain countries as a standard feature on its mobile sim cards.

Schooling

Schooling in Australia can be availed through Public Schools or Private Schools. Most public schools don’t have any official fees, however there may be a voluntary contribution of around $200 per year and some additional costs for stationery etc of around $150 per academic year.

Private school fees vary from catholic schools starting at between $3,000 and $6,000 per annum compared to some of the leading private schools which charge fees of up to $20,000 per annum.

Food and Drink

Groceries

Woolworths, Coles and Aldi are some of the big supermarket chains in Australia. There are also a lot of specialised shops that offer imported foods from different countries in most metropolitan areas. It is important to note that Australia does not follow a fixed price model for most goods and different shops may offer different prices for the same stuff. It is also cheaper to buy larger packaging as most shops will offer lower unit prices as the size of packaging increases.

A family of 4 with average needs can expect to spend around $600 to $1000 towards monthly groceries.

Alcoholic Beverages

Most supermarkets in Australia have a dedicated but separate shop for selling alcoholic beverages. There are also standalone bottle shops that sell these. In general the prices of beer vary from $3 – $4 per 330ml bottle.
The price of wine will vary considerably from $4.50 – $12 a litre.  High spirits could cost start from around $30 for a one litre bottle. Drinking at bars and pubs could mean that a person would end up paying almost 3 times the above costs. Bulk packaging and purchases may offer large discounts.

Eating Out

Australia is full of options for people who love to eat out. Lunch time meals in most restaurants are cheaper when compared to having dinner there. Dinners in most places come with a bit of extra service and better presentation of food. Most food outlets are based on the cafe model and an average meal for one person could cost around $15 to $25. Regular sized coffee costs around $4.5.

Sport and Recreation

Television Subscription

• Basic Streaming Services (Netflix, Stan, Disney+, Amazon Prime): $10 – $20/month
• Sports & Premium Content (Foxtel, Kayo Sports, Binge): $25 – $99/month

In total, the cost of TV subscriptions in Australia can range from as low as $10/month for basic streaming services to $99/month for comprehensive cable or satellite bundles with sports and premium channels. Many people combine several subscriptions, depending on their interests.

Outdoor Sports

Kids membership to a team or club such as for Tennis or Swimming could cost around $200 a year. Some of the suburban areas in major cities have a free clubs located in their area.

Gymming

Average Gym memberships would cost start at around $100 per month in most gyms across Australia. Most Gyms in Australia do not advertise their price and have to be visited in person or called for an enquiry.

Movies

A full price Adult Cinema Ticket will cost you around $16 – $25 with a child’s ticket costing around $12 – $20. Some movie service providers will have a tie up with other companies like insurance providers and supermarkets and may offer discounted tickets. Most cinemas also run promotion days each week, mostly on weekdays, where tickets will be around 30% cheaper.

Public Transport

Average monthly costs for travelling via public transport could be around $200. This depends vastly on the number of days travelled, whether paying on a daily basis or availing a unlimited monthly pass. Most Australian states offer a single ticket in which users can choose a combination of Tram, train or bus and have to pay once. A single one way journey could cost around $5.

Taxi Fares

There are multiple options available for commuters availing a taxi. Uber also provides its services in most of Australia and is one of the cheaper options. Taxi fares have a flagfall of around $5, charge $2 to $3 per kilometer and around $1 waiting per minute. Some taxi service providers reduce fares for longer journeys for example when the travelling distance is more than 20 kilometers.