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 and knowledge of both countries to break down the basic living costs, answering the ultimate question of which country may be cheaper to live in.
Comparing the Cost of Living in New Zealand vs Australia
When comparing the cost of living between Australia and New Zealand, it's essential to understand the differences in key areas such as housing, food, transport, and entertainment.
To provide a fair comparison, we'll look at Sydney, Australia's biggest city, and Auckland, New Zealand’s largest city.
It’s essential to note that where you live in Australia will have a huge impact on the overall living cost! For example, choosing to live in Sydney compared to Perth or regional towns will increase your living costs. The same goes in New Zealand, where the cost of living in Auckland is significantly higher than in Christchurch.
Here are some of the key areas for comparison in the cost of living between Australia and New Zealand’s biggest cities:
Currency Difference
A crucial factor in comparing living costs between New Zealand and Australia is the exchange rate. As of February 2025, NZD$1 is approximately equal to AUD$0.92. This means that your savings in New Zealand dollars may not stretch as far when you move to Australia, although the exchange rate can fluctuate. Be sure to check the current exchange rate when planning your move to get the most accurate information.
Wages
Income plays a significant role in affordability, and one of the reasons many Kiwis choose to move to Australia is for the potential to earn higher salaries. According to crowd-sourced information from Numbeo, the average net salary in Sydney, after tax, is around AUD$6,731 per month.
By comparison, the average net salary in Auckland is NZD$5,665 per month, or AUD$5,114. This wage gap means that you may have more disposable income in Sydney, but it's essential to factor in the higher cost of living in the city.
Housing
The housing market is an area where there's a noticeable difference between the two countries, particularly in Sydney.
Median House Prices: In Sydney, the median house price is AUD$1.65m, while in Auckland, it's NZD$1m (around AUD$900k). This shows that Sydney’s housing market is more expensive than Auckland’s by a significant margin.
Renting: According to Budget Direct, renting a three-bedroom apartment in the city center of Sydney will cost you around AUD$6,986 per month. In contrast, renting a similar apartment in Auckland will cost about NZD$3,799 per month. Sydney’s rent can vary greatly depending on the suburb, with areas like the eastern and inner northern suburbs typically being more expensive.
Groceries
In general, groceries in Sydney are more expensive than in Auckland, with a typical price increase of around 5%, particularly for fresh produce. However, Australia does not apply the 10% Goods and Services Tax (GST) on many staple groceries, such as fruits, vegetables, bread, and cereal, which can make the overall grocery bill a bit more affordable.
Additionally, Australia's competitive supermarket space can lead to better deals and more variety compared to New Zealand.
Dining Out & Entertainment
When it comes to dining out and entertainment, the costs are fairly comparable, though there are some differences.
Dining Out: Restaurant prices in Sydney are approximately 1.5% higher than in Auckland.
Cinema Tickets: However, the cost of entertainment, such as cinema tickets, is slightly higher in Sydney, with the average ticket costing around AUD$1 more than in Auckland.
Fitness Clubs: The monthly fee for a fitness club in Sydney averages AUD$95, while in Auckland, it’s typically lower, at approximately $60.
Transport
Transport costs are an essential part of daily life, and here's how the two cities compare:
Public Transport: A one-way ticket on public transport in Sydney costs around AUD$5.42, compared to Auckland’s NZD$4.20. This means public transport in Sydney is more expensive.
Petrol: On the other hand, petrol is much the same in price in the two cities, at AUD$2.20 per litre in Sydney and NZD$2.93 in Auckland.
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 generally slightly cheaper to live in New Zealand. However, as the average salary is 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!