Cost of Living in Australia

Those who said Australia’s claim as an expat destination with a high quality of life and a low cost of living was too good to be true are finally getting the last laugh. Over the course of the past few years (2010 to 2012) expenses in all of the nation’s major cities have increased dramatically, mainly due to the strengthening of the local currency and the rise in house rental prices. 
 

Now, according to a number of 2011 studies, namely the Mercer Cost of Living Survey and the Economist Intelligence Unit study, Sydney, Melbourne, Perth and Brisbane are all metropolises that are more expensive than even the likes of many of Europe’s premier capitals. 
 

Sydney (14) is still the most expensive city in the nation, beating out both notoriously pricey London and Beijing, but Melbourne (21) isn’t far behind – and is, in fact, ranked higher than Paris. Expats looking to relocate to Perth (30), Brisbane (31), Canberra (34) or Adelaide (46) also must be wary of burdensome budgets; these cities were all among the top 50 most expensive destinations of the 213 polled (Mercer Cost of Living 2011).
 

It follows then, that even though the Australian job market is tempting, expats shouldn’t allow themselves to be lured abroad without negotiating a contract that can adequately cover monthly spending. 
 

More and more Australians are complaining of stretched household incomes, and the famed social welfare and benefit systems in place in Oz, like Medicare and superannuation, don’t seem to be mitigating the financial discomfort. 
 

What follows is a guide that expats can use to predict their cost of living in Australia, and thus better prepare to evaluate an offered employment package. 
 

Shortages of rental properties and continuous landlord rate rises have established surging rental costs in Australia. As of 2011, median house prices in Sydney were marked at 485 AUD per week, while the cost of units (akin to townhouses) was pegged at 450 AUD per week. 
 

Though the nation’s capital city certainly claims the most expensive rents in the country, rental prices in Melbourne, Canberra and Adelaide (with its limited supply and growing demand) were not far behind. 
 

While economists predict that the rising prices will come to a halt, and perhaps even recede slightly, in 2012; expats will have to be wary that over 30 percent of their monthly income might need to go to the financing the roof over their head. 
 

Furthermore, expats will need to account for rising electricity prices – fees are expected to at least have doubled from 2008 levels in 2015; price hikes are scheduled again for July 2012. 

►Read more about accommodation in Australia
 

Most expats living in Australia won’t be permanent residents, and therefore won’t be able to quality for Medicare, the national universal health insurance coverage. Those that have waded through the red tape to obtain this documentation; however, will find that healthcare is of a high standard and is extremely affordable.
 

Medicare is financed by individual tax deductions, and allows permanent residents to take advantage of free comprehensive hospital care, as well as highly subsidised or free doctor’s consultations. 
 

Still though, all expats are formally required to prove to the Australian authorities that they are adequately covered by a minimum level of private health insurance to initially be granted their visa (permanent residents can file for an exemption after the fact). 
 

Private health care costs in Australia can be expensive, in some cases comprehensive care will set you back more than 500 AUD per month; and unfortunately, there’s no way for temporary residents to escape these fees. 

►Read more about healthcare in Australia
 

Expats moving to Australia with kids can rejoice in the knowledge that the public school system is reputable, and in many cases, cheap. Only in select states, namely New South Wales, are temporary resident holders required to pay tuition to enrol their children in the state system. 
 

Otherwise, expats merely need to finance school uniforms, stationary and the somewhat compulsory ‘voluntary contributions’. 

For those who prefer to have their children enrolled in a private school or international school, tuition will naturally be required, and will be expensive; annual fees are around 20,000 AUD.
 

Alternatively, somewhere between the state system and the private system lies faith-based schools. Tuition for these institutions usually hovers around 2000 AUD, and then temporary residents are required to pay an additional 1500 AUD per family. Strangely enough, tuition to these schools can cost temporary residents less than fees for public schools (in states where tuition payment is mandatory), and thus they have become popular alternatives that a fair amount of expat families consider and take advantage of. 

►Read more about education and schools in Australia