Uncertainty about future expense changes due to inflation and economic trends globally is a concern for people considering moving abroad. If you’re looking to move Down Under, planning to create a financial plan tailored to Australia’s unique cost structure in advance will help you manage the cost of living in Australia in 2025 and beyond.
At Remitly, we care about our customers’ quality of life. So, we’ve prepared this guide on living expenses in Australia, including housing, transportation, healthcare, utilities, education, and entertainment costs. You’ll also find actionable tips to manage household expenses, save, and spare some money to send back to your family abroad.
Housing costs in Australia in 2025
Housing prices continue to increase in Australia. CoreLogic’s April Housing Chart Pack report found that the average housing prices have increased by 39.1% over the last five years. As of March 2025, the average house cost in Australia was $230,000 USD.
Experts predict that the prices will continue to increase due to economic problems, high influx of immigrants increasing demand for rental properties, government policies affecting the construction sector, and high interest rates, especially in the major cities.
If you’re renting, these are the current rates in major cities and suburban areas in 2025.
| Australian city | Average rent per week (USD) |
| Darwin | $700 |
| Perth | $690 |
| Adelaide | $620 |
| Brisbane | $650 |
| Hobart | $570 |
| Sydney | $775 |
| Canberra | $700 |
| Melbourne | $580 |
| New South Wales (NSW) | $750 |
| Northern Territory (NT) | $650 |
| Queensland (QLD) | $620 |
| South Australia | $590 |
| Victoria | $475 |
How to find affordable housing in Australia in 2025
Australia’s housing crisis has prompted the government to seek better programs to make housing cost-effective.
With initiatives like the Housing Australia Future Fund (HAFF), the government seeks to build and make 55,000 social and affordable homes accessible.
To find inexpensive homes in Australia, consider houses far from the city center, especially if you choose to live in a major urban area.
Suburbs offer some of the cheapest homes. If possible, consider living in Charleville, Rosebery, Kambalda West, or Collinsville.
Negotiating rent prices is also possible. Before you do, read free resources from established agencies and agents to brush up on your negotiation skills. Your agent can also negotiate on your behalf. Just do your homework and be aware of the average rates of where you intend to live, and set a price beforehand to negotiate to that will best suit your budget.
Utility and energy expenses in Australia
Utility costs vary depending on your location, consumption, and energy provider. Australia generates three-quarters of its domestic electricity using coal.
On average, you’ll pay $165 USD per month for electricity. The sector is privatized, and most players opt to export their supply to the domestic market, which results in high energy prices.
However, the government is working on renewable energy sources like wind and solar to help reduce energy prices and reduce Australia’s environmental impact.
According to Numbeo, a mobile phone monthly plan with calls and 10 GB+ data will set you back $41.09 AUD, while internet with a minimum of 60 Mbps costs $82 AUD.
Groceries and Dining
Australia imports only 11% of its food, primarily beverages. It’s so self-sufficient in food production that it exports 70% of its produce to other countries.
Despite growing most of its food, Australia’s food and grocery prices are among the highest in the world.
This is caused by oligopoly, where only two supermarkets一Woolworths and Coles一dominate the market. With little competition, the stores can set higher prices than usual.
Australia’s vast landscape makes transporting groceries to all parts expensive. These costs are transferred to customers. Increased production costs and influence from the export market further lead to high prices.
Seasonal produce prices also fluctuate due to supply chain challenges, and scarcity when they are out of season.
Families in urban areas also pay more than those in rural areas because more food is produced there. So, people either grow their own food or access it conveniently.
These are the prices of some grocery items, as of May 2025. A liter of regular milk costs around $1.51, and 12 regular eggs will cost about $4.28. A kilogram of local cheese is $8.82, and a kg bag of onions is $2.12. A kilogram of tomatoes will cost you $4.27, and a kg of ground beef is $13.76.
Managing household expenses in Australia may require you to incorporate smart shopping strategies.
Consider these tips to reduce your living expenses in Australia in 2025:
- Make a shopping list and stick to it
- Shop local
- Buy fruits and vegetables that are in season
- Take advantage of coupons and deals
- Consider buying ‘ugly’ produce. It’s cheaper and reduces food waste.
- Switch to generic brands
- Shop in bulk
- Use budgeting tools like GoodBudget, NerdWallet, and PocketGuard to track your expenses
- Stick to your meal plan and don’t shop when hungry
Transportation costs in Australia
A 2023 report from Compare the Market states that public transportation in Australia is the third most expensive in the world, following Switzerland and the Netherlands.
Data from the Australian Automobile Association shows that transport costs in the last quarter of 2024 reduced due to lower fuel prices. However, these figures were high compared to global rates.
Fortunately, concession rates improve the affordability of transport. Concession tickets are handed to special groups of people, e.g., seniors, at a discounted price.
For example, Translink charges 50 cents per journey to children between 5 and 14 years old, school students, tertiary students, seniors, pensioners, veterans, job seekers, and asylum seekers.
A normal bus and light rail ticket with Transport Canberra costs $6.38 for adults on a weekday. The rate reduces to $3.91 on weekends and public holidays. Weekend and public holiday concession rates are $1.45.
You can consider alternative cost-effective transport options like biking and car sharing to save some money.
Owning a car costs more than the purchase price. There are ongoing costs that you’ll plan for to drive in Australia comfortably. You may spend an average of $462 weekly servicing the car loan, fueling the car, paying for insurance, servicing the tires, and toll payments.
Healthcare Costs
Australia runs a public healthcare system known as Medicare, available to:
- Visitors from a Reciprocal Health Care Agreement country
- Citizens and permanent residents of Norfolk Island, Cocos (Keeling) Islands, Christmas Island, and Lord Howe Island
- Australian citizens
- New Zealand citizens
- Australian permanent residents
- Persons applying for permanent residency
- Temporary residents covered by a ministerial order
If you’re eligible, Medicare covers doctor’s appointments, diagnostic tests, and surgical procedures. It doesn’t cover ambulance services in most parts of Australia, dental treatments, or physiotherapy.
For these reasons, you may consider paying for private insurance.
The average monthly cost of private medical insurance in Australia depends on the region. The premiums in New South Wales are $158, $121 in the Northern Territory, and $161 in Victoria.
Australia’s out-of-pocket medical costs are surging, increasingly making good healthcare inaccessible for some. The government is developing and implementing programs and reforms to reduce these expenses.
- $51 billion to provide more bulk billing so more people (15 million) can see a General Practitioner (GP) for free
- Reclassification of private hospital tiers
- More discounts
- Travel and accommodation benefits
- Mental health treatment
- Better investigation of complaints
- Increasing the age of dependents
- Clear out-of-pocket costs for better planning
As you begin to build a fulfilling life for yourself, you’ll incur certain lifestyle and entertainment expenses. These include subscriptions, fitness memberships, and leisure activities.
A one-month membership at a fitness club costs $63, and a seat at a movie theater costs $18. Consider balancing work and leisure to stay within budget by only paying for services you need.
Look for free alternatives and only use paid versions when necessary. Minimize eating out. You can also go sightseeing and try restaurants with a group of friends to take advantage of the cheaper group rates.
Australia’s regional comparison of living costs in 2025
How much does it cost to live in Australia? Take a look at the numbers to see key differences in the cost of living between high-cost metro cities like Sydney versus more affordable areas like Adelaide or Hobart.
| City | Average cost of living for a family of four | Average monthly salary |
| Sydney | $6,224 | $4,411 |
| Brisbane | $5,535 | $3,850 |
| Melbourne | $3,716 | $3,943 |
| Adelaide | $3,750 | $2,765 |
| Canberra | $3,723 | $4,499 |
| Perth | $3,559 | $3,693 |
| Hobart | $3,890 | $4,431 |
To reduce your living expenses, consider living in smaller cities, away from the city center.
Financial planning for 2025
As of May 2025, Australia’s inflation rate was 7%. Although wages are increasing, there’s still a need for strategies to prepare for potential cost increases.
Consider these tips:
- Use tools and resources like Up, Beem, and Spriggy for expense tracking
- Create a savings plan, automate your savings, and save your money in a high-yield savings account
- Cook at home
- Reassess your subscriptions
- Build an emergency fund
- Embrace meal planning
Australia offers one of the best living standards globally, although at a high cost of housing, utilities, groceries, transportation, and healthcare. Fortunately, there are high-paying opportunities that expats can access to help them afford life here.
Assessing your current financial setup, budgeting, finding affordable cities in Australia to live in, and comparing service providers such as insurance agencies and utility companies will help plan accordingly for 2025.
FAQs
How much money do you need in Australia to live comfortably?
This depends on your salary compared to the average cost of living in the region you’re based in. Stay further from the city center to reduce costs and negotiate your rent.
Is food expensive in Australia?
The cost of groceries and food is high. But there are ways of reducing the expenses. Stick to your budget, shop local, buy fruits and vegetables that are in season, take advantage of coupons and deals, consider buying ‘ugly’ produce, switch to generic brands, shop in bulk, use budgeting tools like GoodBudget, NerdWallet, and PocketGuard to track your expenses, stick to your meal plan, and don’t shop when hungry.
What’s driving up the cost of living in Australia?
Rising rent, energy prices, and food costs are the main factors. Housing shortages and inflation continue to push everyday expenses higher across the country.
Which Australian cities are most expensive to live in in 2025?
Sydney and Melbourne remain the priciest, especially for rent and transport. Brisbane and Perth are more affordable, while cities like Adelaide and Hobart offer lower overall living costs.