The Cost of Living in Australia 2025: What You Need to Know

Hey there! Planning a move to Australia or just trying to get your head around how much life costs Down Under? Whether you’re a student, a professional, or someone simply exploring your options, understanding the cost of living is essential for managing your budget. From rent and utilities to groceries and entertainment, here’s a detailed breakdown to help you figure it all out.

Rent: Your Biggest Expense

Rent is likely to be your largest monthly cost, and it varies significantly depending on where you live.

Living in Major Cities vs. Regional Areas

If you’re heading to bustling cities like Sydney or Melbourne, get ready—these are two of the most expensive places to live in Australia. A one-bedroom apartment in the city center can set you back anywhere from AUD 2,500 to AUD 3,500 per month. If you’re okay with living further out in the suburbs, you might find something more affordable, typically around AUD 2,000 to AUD 2,500.

In smaller cities like Brisbane, Adelaide, or Hobart, rents are much friendlier to your wallet. For example:

• Brisbane: A one-bedroom in the city center can cost around $2,200, while suburban options might hover around $1,800.
• Adelaide: You might snag a one-bedroom apartment for as low as $1,400 to $1,800.
• Hobart: Expect prices between $1,200 and $2,000, depending on location.

The national average works out to be $580/week or roughly $2,500/month, so if you’re not yet sure where exactly you’re going to live, this is a good starting point to work out your budget.

Mozo’s 2024 rental report reveals that nearly half of Australian renters (49%) allocate 30% or more of their income to rent in 2024, and about 10% spend over 60%+ of their income on rent, putting them under significant financial stress.

This is to say: don’t underbudget for housing. Costs of living are contantly rising, so it’s always better to be on the safe side!

Shared Accommodation

If you’re looking to save money (and don’t mind sharing your space), renting a room in a share house is a popular option. This could cost you anywhere from $800 to $1,500 per month, depending on the area and the type of home. Many such listings are available on Facebook Marketplace, so if you want to save a few more bucks by not paying agency fees, this might be a way to go.

Pro Tip: Always factor in additional costs like utility bills when comparing rental options. These can make a big difference in your overall budget. Note also that some rentals may include the cost of some utilities in your rent, so if you want to avoid the additional headache of paying multiple bills, this is definitely an option to consider.

Utilities: What to Expect

Utilities are another key expense to consider when considering the cost of living. These include electricity, gas, water, and internet.

Electricity & Gas

For an average-sized 1 bedroom apartment, expect your electricity and gas bills to range between $70 and $150 per month, depending on your usage and the season, and of course how many people you live with. Summers can be cheaper if you’re not using the air conditioning 24/7 and have a nice breeze going through your home, but winters might hike up your gas and electricity bill if you rely on heating.

Based on Canstar Blue research from 2024, here’s an overview of the expected electricity cost based on the household size:

Water

Water is relatively inexpensive in Australia. On average, you’ll pay about $30-70 per month. Some rental agreements include water in the rent, so double-check your lease before budgeting separately for this. This also often applies to units and apartments in high-rise buildings, as they often pay for water as the building, and this is then included in your body corporate levies (extra fees you pay for the services and amenities offered in a high-rise building).

Internet

A reliable internet connection is essential for most people. Plans typically cost between $60-100 per month, depending on the speed and provider. The National Broadband Network (NBN) nets a similar price at $75 per month average for most households.

If you’re sharing accommodation, splitting the cost of internet with housemates can make this expense more manageable.

Everyday Expenses: Groceries, Transport, and Dining Out

Groceries

Groceries can vary based on your eating habits and whether you prefer cooking at home or dining out frequently. Here’s a rough idea of what you might spend monthly:

• Single person: $300-500
• Couple: $400-800
• Family of four: $800-1,200

Here are some average prices for common grocery items:

• Milk (1 liter): $1.25
• Bread (loaf): $5.00
• Eggs (12): $7.00
• Chicken fillets (1 kg): $20.00
• Apples (1 kg): $5.00

Shopping at farmer’s markets or discount supermarkets like ALDI can help you save a few bucks.

Transport

Public transport is widely available in Australian cities and can be a cost-effective way to get around:

• In Sydney: A single trip costs around $3.00 to $5.00, but using an Opal card offers discounts. If you use public transport very frequently, weekly travel caps can save you money on your commutes.
• In Melbourne: A myki card is your ticket to public transport, with fares costing about $4.50 per trip.
• Other cities like Brisbane and Perth have similar systems with fares ranging from $2.00-$5.00 per trip.

If you prefer driving, keep in mind that petrol prices fluctuate (not only daily but also based on the state and city you’re in) but typically range between $1.60 and $2.00 per litre. Owning a car also means budgeting for insurance, registration fees, and maintenance, so do keep this in mind when doing your calculations.

If you want to learn more about the Australian public transport system and the details of owning and driving a car in Australia, you can check out our detailed transportation post here.

Dining Out

Eating out can be as cheap or as expensive as you want it to be:

• A casual meal at a café or pub will likely cost between $15-25.
• A three-course meal for two at a mid-range restaurant might set you back anywhere from $80 to $120.
• Coffee lovers, rejoice! A flat white or cappuccino typically only costs around $4.00.

Want to save? Look out for lunch specials or happy hour deals at local eateries. If ordering food online, many restaurants offer discounts for multiple ordered meals, or offer daily specials, such as a “buy one get one free” promotion that you can take advantage of. Most popular food delivery services are Uber Eats and DoorDash (DoorDash also has lower fees).

Health Insurance: A Must for Non-Medicare Residents

If you’re not eligible for Medicare (Australia’s public healthcare system, more on that here), private health insurance is mandatory for most visa holders. Costs vary depending on your level of coverage:

• Basic plans: Around $100 to $150 per month.
• Comprehensive coverage: Upwards of $300 per month.

Make sure to shop around and compare providers to find a plan that suits your needs and budget. Be sure to also choose the right coverage for your visa type, as your health insurance might differ from a student visa to a work visa. While going with the biggest company might have its benefits in the availability and scope of insurance, some smaller providers can provide very good care and insurance coverage at a fraction of the cost.

You can learn more about private health insurance from the Australian Government’s site here.

Other Costs to Factor In

Mobile Phone Plans

Mobile plans in Australia are generally affordable:

• Basic plans with limited data (typically 10-30Gb) start around $20-30 per month.
• Plans with unlimited calls/texts and generous data allowances range from $50 to $80 per month.

Whichever option you opt for, be advised that the speed and quality of internet, both mobile and WiFi, is generally quite poor in Australia. Australia is actually often cited as “having some of the slowest and most expensive internet services in the developed world”, currently ranking as #81 on Ookla’s index of fixed broadband speeds worldwide, behind Uzbekistan, Venezuela and Egypt, and just ahead of Belarus and Kazakhstan.

I know what you might be thinking, “Didn’t you just say it’s affordable?”

Yes.

And it is – granted you make your living locally, of course. Spending an average of $30-40 per month on a mobile plan is probably not going to strain your budget.

Now, is it expensive? For what you get, to be honest, yes. If you compare the price of mobile internet in Australia, along with its speeds, to countries with some of the highest mobile internet speeds, like Chile, Romania, Hungary or Thailand, the mobile internet plans are a tiny fraction of the price of what they are Down Under.

“These countries tend to have some of the most advanced infrastructure (high % full fibre FTTP coverage), and are somehow able to offer it to users at very low prices. In a way it obliterates the notion that regions such as Western Europe and North America pay more because of the cost of rolling out new technologies, and actually points more readily to the idea that people in these countries are made to pay more simply because they can be.“

– Dan Howdle, Cable

In a way, we can consider ourselves lucky to be able to afford such high prices. It’s not the perfect scenario, but for all the other perks the country provides, including the very high quality of life, a few extra dollars spent on not-the-greatest internet is not too much of a burden.

Entertainment & Leisure

Life isn’t just about paying bills—you’ll want some fun too! Here’s what entertainment might cost:

• Movie tickets: Around $15-20 each.
• Gym memberships: Anywhere from $50 to $100 per month, depending on the gym and its facilities.
• Weekend trips: If you’re exploring Australia’s stunning beaches or national parks, entry fees are often free or minimal (though fuel/transport and accommodation costs will add up). Get the best domestic travel tips right here! You can expect to spend roughly $150-250/night on hotel or AirBnB accommodation.
• Museums, Art Galleries: Some museums and galleries offer free entry, and the ones that require a paid ticket usualyl range around $15-30 per person.
• Theme Parks: very popular attraction on the Gold Coast, the average single day ticket to Movie World or Wet n’ Wild costs about $130 per person, or you can opt for a 3 park pass for $189 per person.
• Escape Rooms: These are gaining in popularity around the country, and the average ticket will cost you approximately $65 per person.

Final Thoughts: Budgeting Made Easy

Understanding the cost of living in Australia is crucial for planning your budget and avoiding surprises down the line. While initial expenses may seem high—especially if you’re moving to a major city—you’ll likely find ways to balance your spending as you settle into your new life.

This is a rough difference of ~$1,450, as some costs won’t necessarily double for 2 people. Rent would be very similar, or could even be the same, utilities would increase only slightly as would groceries. Some items, however, like health insurance, transport and entertainment would likely double.

Of course, this number will vary based on your lifestyle and location, but it’s a good starting point for creating your budget.

If you want to calculate your own budget for your life in Australia, you can check out our free, downloadable budget planner, or check out our simple cost of living calculator here to see how much you can expect to spend in Australia.

Conclusion

So there you have it—a guide to navigating the cost of living in Australia! Whether you’re moving here temporarily or planning a long-term stay, knowing what to expect will help you make smarter financial decisions.

Remember to also prioritise your expenses. If you’d rather pay more for rent to live closer to your place of work and save on transport, that could be a smart move. If this also means you live close to a farmers market and away from restaurants, this decision could further benefit your budget’s bottom line!

Good luck—you’ve got this!