Cost of living in Australia 2026
Rank 149 of 161 from cheapest to dearest: the cost of living in Australia stands at 94.4 on an American base of 100 in 2025, 6% below the United States, according to the World Bank. We read no official figure for spending per Australian household: the monthly ABS indicator gives only a national total, A$82,340.5 million in August 2026, flat on the month. Rent therefore has to be checked locally, city by city, and the capital you choose will shift your budget far more than the national price level here. Official inflation stood at 4.3% over a year (12 months to September 2026). The average salary there leaves A$6,794 net a month. The simulator starts from what you spend today and returns its local equivalent and the gross to aim for.
The same lifestyle, a month: Australia
A$4,570
| Housing and energy | A$2,055 |
|---|---|
| Food | A$908 |
| Transport | A$335 |
| Everything else | A$1,273 |
| Annual gross to fund it | A$66,206 |
National price levels by category, International Comparison Program 2021, exchange rate of 2 November 2026. A capital city can cost far more.
Price level by category, Australia and the United States
| Category (world = 100, 2021) | Australia | US |
|---|---|---|
| Food | 148.3 | 116.5 |
| Housing and energy | 257.5 | 214.6 |
| Transport | 136.0 | 116.0 |
| Health | 194.0 | 207.9 |
| Restaurants and hotels | 187.5 | 142.0 |
| Communication | 115.1 | 224.0 |
| Education | 207.0 | 254.7 |
World Bank, International Comparison Program 2021, CC BY 4.0 licence. Recent overall level: 94.4 against 100 in the United States in 2025.
What prices hide in Australia
Australia is expensive for a low-density country, and the gap comes first from the coastal cities where nearly everyone lives. The overall level (94.4) and food (148.3 in 2021) also reflect distance and an Australian dollar that moves a great deal. Recent inflation remains high compared with most countries on this list. Private health cover can come on top for a temporary resident outside the public scheme.
The lines that stand out in Australia
Against the United States in 2021, restaurants and hotels comes closest, or passes it, at 132%, while communication falls furthest behind, at 51%.
Going further
Questions
What is the cost of living in Australia?
The price level is 94.4 against 100 in the United States in 2025, according to the World Bank, rank 149 of 161. This national average says nothing about a city-centre rent. Rent is often the heaviest line in a budget: check listings in the city you have in mind before deciding.
Is Australia more expensive than New Zealand?
On the overall level, Australia stands at 94.4 and New Zealand at 88.9. The 2021 survey puts housing at 257.5 against 291.4. OECD average wages run higher in Australia too, so the useful comparison is net pay set against prices, which the simulator helps approximate.
Why does this page give no average rent?
Because we read no recent official figure for rent per household. The monthly ABS indicator measures a national spending total, not what a tenant pays. Sydney, Melbourne and Perth diverge too much for an estimate of ours to mean anything, so check listings and data for the state you have in mind.
Sources
- Australian Bureau of Statistics, Consumer Price Index, 28 October 2026
- World Bank, price level: consumption PPP factor (PA.NUS.PRVT.PP) over the official exchange rate (PA.NUS.FCRF), API read 3 November 2026
- World Bank, International Comparison Program 2021: price level index by category, API read 3 November 2026
Figures 2026, checked on