Rent is the obvious one, but childcare, private health insurance, and superannuation contributions often catch new migrants off guard. Here's a full breakdown of what actually costs the most in Australia.
The Biggest Expenses in Australia: What New Migrants Need to Budget For
Australia is an expensive country to live in, particularly in the major cities. The standard of living is high, but so are the costs associated with maintaining it. Here is what actually absorbs the most money — and what new migrants consistently underestimate.
Rent: The Dominant Expense
Rent in Australia is paid weekly, and the weekly figure quoted in listings can initially look manageable until you multiply it by 52. A $500/week apartment is $26,000 per year — before any other costs.
Approximate monthly rents for a 2-bedroom apartment in 2027:
Sydney: $2,800–$4,500 AUD
Melbourne: $2,200–$3,800 AUD
Brisbane: $1,800–$2,800 AUD
Perth: $1,800–$2,800 AUD
Adelaide: $1,400–$2,200 AUD
Regional centres: $1,000–$1,800 AUD
Childcare: The Shock for Families
Childcare in Australia is expensive even after the government's Child Care Subsidy (CCS) is applied. Full-time childcare for one child under school age can cost $2,500–$4,000 AUD per month gross. After the CCS (which varies based on income), most working families pay $800–$2,000 AUD per month per child net.
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Private Health Insurance
If you are on a temporary visa, Medicare is not available to you. Private health insurance for a family can cost $3,000–$7,000 AUD per year. Even permanent residents often carry private cover for dental, optical, and physiotherapy — these are not covered by Medicare.
Transport
In the major cities, public transport is reasonably good but not comprehensive. Outside the inner suburbs, a car is often essential. Car ownership in Australia includes registration (varies by state, but $600–$1,200 AUD/year), compulsory third-party insurance, comprehensive insurance ($1,200–$2,500 AUD/year), and fuel. Petrol is priced per litre and varies — budget approximately $80–$150 AUD per week for a commuting household.
Food and Groceries
Weekly groceries for a family of four run approximately $300–$500 AUD depending on where you shop and what you buy. Australia has a strong supermarket duopoly (Woolworths and Coles) and more affordable alternatives (ALDI, IGA). Eating out is pleasant but not cheap — a restaurant meal for two with drinks is typically $80–$150 AUD.
Utilities
Electricity, gas, and water for an average house: $400–$800 AUD per quarter. Electricity is expensive compared to most countries — energy efficiency and solar panels are worth considering.
The Bottom Line
A comfortable life for a family of four in a major Australian city requires a household income of $130,000–$180,000 AUD before tax. In regional areas, the same lifestyle costs $90,000–$130,000 AUD. Plan your budget carefully before you commit.
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