If you are thinking about moving to Australia, the cost of living is most likely on your mind! Moving overseas is an exciting adventure, but being adequately prepared is essential and knowing whether or not you can afford the cost of living should be a significant deciding factor. To help you understand how New Zealand and Australia compare, Allied Moving Services has used our expertise to break down the basic living costs and we answer the ultimate question of which country may be cheaper to live in.
Comparing the cost of living in New Zealand vs Australia
We explain how Australia stacks up against New Zealand in regards to standard living costs such as housing, food, transport and entertainment. For the following living costs, we’ve compared Australia’s biggest city, Sydney to New Zealand's, Auckland.
Don’t forget that where you live in Australia has a huge impact on the overall living cost! For example, choosing to live in Sydney compared to Perth or other regional cities and towns will increase your living costs.
The currency difference
An important thing to remember when comparing the cost of living in Australia to New Zealand is the currency difference. At the time of writing, XE currency converter states that NZD$1 is equal to AUD$0.92. This means your savings in New Zealand dollars can be slightly less valuable in Australia due to the currency difference, however this is subject to change! We recommend researching the exchange rate when you are relocating to receive the most accurate information.
Wages
There’s no doubt that what you are able to earn makes a big difference in whether the cost of living is affordable or not, and the increased wages are one of the many reasons why more Kiwis are choosing to move to Australia. Fortunately, the opportunity to earn bigger salaries in Australia is not just a myth! As reported by BudgetDirect, the average net salary after tax is $6,630 a month in Sydney compared to Auckland’s $4,433 a month.
Housing
It’s no secret that the Australian housing market is considerably expensive and competitive, especially in the capital cities such as Sydney, Melbourne, and Brisbane. According to the ABC, the median house value is $1,381,045 in Sydney (Auckland’s median price is reported to be $1.01 million). In Sydney, renting a home or apartment is also more expensive than in Auckland. The monthly rent of a 3-bedroom apartment in the Sydney city centre is reported to be $5,249, however the cost of rent can vary depending on the suburb. Sydney’s eastern and inner northern suburbs tend to be the most expensive so it’s recommended to look for a rental or property to purchase in the western suburbs further out from the CBD.
Groceries
Purchasing groceries is an everyday living expense, and is unfortunately more expensive in Sydney than in Auckland. On average, you’ll likely pay 5.3% more for groceries in Sydney - in particular for fresh fruit and vegetables. However, Australia has the benefit of not adding the 10% Goods and Services Tax (GST) onto many staple groceries such as fruit, vegetables, bread, cereal, tea and coffee. Australia also has more competition with a larger range of products and brands, as well as more supermarkets, stores and markets to shop from, which can help you find a better price.
Dining Out & Entertainment
Once you relocate to a new country, you want to enjoy everything there is to offer! This includes dining out, entertainment, and other non-essential expenses like gym memberships. According to Budgetdirect, restaurant prices are 11.40% lower in Sydney than in Auckland. Entertainment is slightly more expensive, with the average cinema ticket in Sydney costing $1.45 more than in Auckland. Fitness clubs also cost more in Sydney, with the monthly fee for one adult averaging $86.59.
Transport
Transport is an essential living expense, no matter where in Australia you live! Using public transportation is a great way to get around, but it is more expensive than in New Zealand. A one-way ticket in Sydney costs $4.83, compared to Auckland’s price of $4.00. Fortunately, petrol is much more affordable in Australia! The average cost of a litre of petrol in Sydney is $1.86 (Auckland’s price is $2.69).
Is it cheaper to live in New Zealand or Australia?
The ultimate question - is it cheaper to live in New Zealand or Australia? Although it can depend on where in Australia you decide to live, it is slightly cheaper to live in New Zealand. However, as the wages are higher in Australia, the cost of living equals out.
You can begin planning your move to Australia by following our helpful moving checklist! Allied Moving Services can provide you with a quote which is specific to your move to Australia and unique moving requirements. Get in touch with our friendly team to learn more!