Many prospective visitors or migrants to Australia want to know about the cost of living in Australia. The actual cost of living in Australia will depend on many individual factors, such as whether you are single, part of a couple or have a family, where you want to live in Australia, what you like to eat and wear and what you do with your spare time. These personal lifestyle choices and circumstances, along with fluctuations in currency exchange rates, are important to consider before you visit or migrate to Australia.

It's no secret that the liveability of Australian cities are commonly perceived to be among the highest standard in the world. In the Economist's World's Most Liveable Cities 2009 survey, three of Australia's major cities (Melbourne, Perth and Sydney) are represented in the top ten most liveable cities based on criteria such as safety, education, hygiene, recreation, political-economic stability and public transportation. All residents of Australia enjoy access to employment, services, goods and education of the highest quality, but how much does it actually cost to live here?

In general, you will need to provide for the entire ongoing living costs for yourself and your family for at least the first two years of your time in Australia (without welfare assistance).  Assuming that the conditions of your visa allow you to work in Australia, it will be important that you secure dependable employment in order to finance your basic housing, food and lifestyle needs.

If you're coming to Australia from Europe, especially the UK, you're probably already aware that general living costs are comparatively less in Australia. However, often this reduction in living costs is offset by lower wages for work in Australia and a higher tax bill.

While the standard of living in Australia is notably high, its distance from other countries often means imported goods, such as cars and clothing, can be expensive as compared to the cost of these items in Europe or North America.  Travelling is another expense to consider in relation to the cost of living in Australia. Although Australia has an excellent network of trains, buses, trams and ferries for public use, transport costs can quickly add up due to Australia being such a large country and the distances involved in travel. On the plus side though, petrol is much cheaper in Australia then in Europe.

The price of food in Australia is similar to the US and around 25 per cent less than most European countries. Fruits and vegetables are very easy to come by and are usually locally produced. Milk and beef are perhaps the cheapest commodities in Australia since there are produced and processed locally. Lamb is also locally grown and relatively inexpensive. Imported products such as cereal, biscuits, imported fish, beer and other alcohol are more expensive in Australia.

You will need to obtain suitable housing for yourself and your family in Australia. Housing in Australia can range anywhere from hostels and boarding houses, to modern apartments and beautiful suburban or city homes. You may choose to purchase your own home if funds allow, as is the practice of most typical Australian families, or your may choose to rent a residence for your time in Australia. Renting apartments and condominiums is not as common in Australia as it is in the United Kingdom and is comparatively more expensive. The cost of housing in Australia can be considered to be more expensive in general than the cost of housing in other developed nations like the UK, US or Europe.

When you rent accommodation in Australia, the costs of utilities such as electricity, gas and phones are usually not included. However utilities in Australia are generally very affordable.

These are some of the costs of living in Australia that you will need to consider before visiting or migrating. Keep in mind that currency rates affect comparative costs between your country of origin and Australia, and that these are fluctuating constantly.

Australian Social Security Payments

Australia offers various social security payments which may help support the cost of living in Australia. In most cases, new migrants in Australia will need to hold a permanent Australian visa for two (2) years before they become eligible for Australian social security payments.

Once this requirement is met, Australia offers numerous welfare options which can help significantly with the cost of living in Australia. These include financial assistance for unemployed persons (Newstart Allowance or Sickness Allowance), assistance for students (Austudy or Youth Allowance), as well as other specific assistance such as the allocation of a Health Care Card to low income earning families.

The Australian government offers these (and other) social security benefits to all eligible Australian residents, according to need, in order to aid in meeting the cost of living in Australia. Note that to be eligible for the Age or Disability pensions, a person must have resided in Australia as a permanent resident visa holder for at least ten (10) years.

Exemptions on Waiting Periods

In special circumstances, exemptions to the usual two (2) year waiting period for social security payments exist where it is determined an applicant is in hardship and needs immediate assistance with the cost of living in Australia.  A Special Benefit payment may be made in cases where a substantial change of circumstance beyond the applicants control has occurred after the applicant has obtained an Australian permanent resident visa and has commenced residing in Australia. Instances where Special Benefit payments may be made include cases of widowhood, disability, or a breakdown of relationship resulting in single parent status. In circumstances such as these applications can be made to receive a Special Benefit payment in order to meet the costs of living in Australia. Note that simply running out of money or being unable to find employment will not qualify as reasons to receive this payment.  

You may also be exempt from the two (2) year waiting period for most social security payments if you are;

If you believe you fit any of these categories, you may be eligible for financial assistance to aid in the cost of living in Australia before the two year waiting period is expired.

As of January 2009, Australia has a social security agreement with 22 cooperating countries, and Australian permanent resident visa holders originating from these countries may be eligible to receive a pension to help with the cost of living in Australia before the usual ten year waiting period.

You can find more information about social security payments and eligibility, or about Australia's international agreements from:

Website:    www.centrelink.gov.au

Telephone:

131 673 (Centrelink International Services in Australia)
131 202 (languages other than English)
+613 6222 3455 (outside Australia)

Social Security for Families with Children

Migrants bringing dependent children to Australia may be eligible for Family Assistance payments to help with the cost of raising children in Australia. There is no waiting period for Family Assistance payments, but applicants must hold a permanent visa to be eligible. Note that Family Assistance payments are intended only to help with the cost of living in Australia, they are not sufficient on their own to cover the entire cost of living in Australia.

Family Assistance benefits include Family Tax Benefit Part A and B, Child Care Benefit, and the Child Care Tax Rebate. How much you are entitled to will be determined by the number of children you have, by their ages, and by your total annual income over the current financial year. It is advisable to apply for Family Assistance payments if you are eligible to do so, as these subsidies can significantly support the cost of living in Australia for you and your family.

Family Assistance offices can be found in Australia in all Medicare offices and Centrelink Customer Service Centres.

You can find further information on Family Assistance payments and eligibility from:

Website:    www.familyassist.gov.au

Telephone:     136 150 (from Australia)
131 202 (for languages other the English)