The Cost Of Living In Australia 2024

Australia has long been considered a dream location to put down roots. Whether you’re looking to relocate your family, seek new career opportunities, or are ready for an outback adventure, there’s certainly a lot to offer in the land down under.

But, while Aussies are well known for their laid back, low-key lifestyle, the cost of living might be higher than you may realise.

From wages, to tax rates, housing, utilities, education and more, in this article we’re diving into everything you need to know about the cost of living in Australia in 2024.

What is the cost of living exactly?

Cost of living is determined using a number of different metrics including the price of essential products and services, general affordability, and how changes to these costs impact individuals and families from different parts of the country.

The Aussie government works out the cost of living via:

• The Consumer Price Index (CPI): Measures the shift in value of goods and services.
• Living Cost Indexes (LCIs): Measures the costs associated with maintaining a standard of living.
• Wage Price Index (WPI): Measures the change of wages, incomes and labour costs across different industry sectors.

A note on cost of living metrics

While cost of living (COS) metrics are good indicators, the truth is, the results can vary greatly.

For this reason, COS should not be considered as a complete authority when it comes to the circumstances of an entire population.

With that said, exploring cost of living and some of the variations you can expect, can help you understand more clearly how you may be affected personally, and the things you can do to keep costs down.

The year that was - 2023 ‘Cossie livs’

It’s no secret that many Aussies grappled with financial challenges throughout 2023. Food prices surged, property sales hit record highs and many core utility providers upped their rates.

The pinch was felt so strongly, that in true blue style, a few new words became part of the everyday Aussie vernacular.

Terms like ‘Shrinkflation’ and ‘cossie livs’ emerged to describe how many Aussies were feeling - paying the same, or more, but getting less for essential items and services.

Key cost of living stats from 2023

• Throughout 2023 all Living Cost Indexs rose by between 5.3% and 9%.
• Employee households (where principal income is from wages or salaries) recorded the largest annual rise in living costs of all household types at 9%.
• Insurance, financial services and transport were the main contributors to the quarterly rises.
• Mortgage interest charges rose 68.6%.

So, what’s in store for 2024 and are there ways to keep costs down?

What is the average cost of living in Australia in 2024?

There is no exact figure for the cost of living in Australia. However, Expatistan estimates the current cost of living in Australia is roughly AU $4,312 per month for a single person or AU $7,786 per month for a family of four.

Based on these figures, the cost of living in Australia is ranked more expensive than in 87% of countries in the World (10 out of 68).

The cost of living in Australia is ranked more expensive than in 87% of countries in the world.

Cost of living vs. standard of living

While cost of living describes the cost associated with core essentials such as food, housing, health care, utilities and transport, standard of living refers more to the quality or comfort of your life.

How much do you need to live comfortably in Australia?

Living comfortably in Australia varies greatly depending on factors such as location, lifestyle and personal preferences. As a general guide, a single person living outside of a major city would need an annual income of $70 - $80k per annum or $5,800+ per month. Of course this total increases for couples and families.

Key facts

• According to new research (January 2024), the average Aussie says it would take an annual income of $345,819 for them to feel rich.
• The current average personal income in Australia is $72,753.
• The median rent in Australia is $580 a week for houses and units.
• The average quarterly electricity bill will set Australians back $317 while gas costs an average $181 every 3 months.
• 26% of Aussies say energy bills are giving them financial stress.
• Wages are growing at their fastest pace in 15 years, with lowest paid workers seeing a 6.7% wage growth.

What’s the average salary in Australia?

The median weekly earnings / salary for employees in Australia is $1,300 or $39.50 per hour.

This can be broken down further:

• 25% of all employees earn less than $820 per week
• 50% of all employees earned less than $1,300 per week
• 75% of all employees earn less than $1,975 per week
• 90% of all employees earn less than $2,820 per week

Average salary by State / Territory

Australian Capital Territory (ACT) has the highest median weekly earnings at $1,550 per week while South Australia has the lowest at $1,200 per week. Australian Bureau Statistics

• Australian Capital Territory: $1,550 per week
• Northern Territory: $1,427 per week
• New South Wales: $1,339 per week
• Western Australia: $1,339 per week
• Victoria: $1,280 per week
• Tasmania: £1,210 per week
• South Australia: $1,200 per week

Highest paying professions in Australia 2024

Career opportunities in Australia are diverse and can be highly financially rewarding. Some of the highest paying sectors include healthcare, finance, tech and mining and natural resources.

1. Surgeon: $394,303
2. Anaesthetist: $386,065
3. Internal Medicine Specialist  $304,752
4. Financial Dealers / Traders: $275,984
5. Psychiatrist: $235,558
6. Other Medical Practitioners: $222,933
7. Judicial or Legal Professionals: $188,798
8. Mining Engineer: $184,507
9. Enterprise Architecture Manager: $168,762
10. CEO or Managing Director: $164,896

Tax rates in Australia

The amount of tax you pay in Australia depends on how much you earn. Under the current rules, if you earn under $18,200 per year you won’t pay any tax.

However, if you have an income of $180,001 or more, you’ll pay $51,667 plus 45c for each $1 over $180,000. Below is a table detailing the income brackets and associated tax.

Find out more information on tax costs in Australia here.

Education costs in Australia

Average annual secondary school tuition  

Primary and secondary school

Tuition fees cost parents anywhere between $158 per year for public primary school to $12,860 per year for independent secondary schools.

Again, costs vary between State and Territories.

ACT holds the title as most expensive state for private primary schools. The average school tuition cost here is $8,511 per student, per year.

New South Wales has the most expensive private secondary schools with an average annual tuition cost of $12,860. That's $3,500 more than the average cost in Victoria.

When it comes to government education, South Australia has the highest cost. Schools here ask for an average voluntary contribution of $440 per year for primary levels and $978 for secondary students.