Cost of living in Australia compared to the UK

Moving from the UK to Australia usually means higher prices at the supermarket and on rent, but also higher wages, employer superannuation on top of your salary and lower income tax at most income levels. Whether you come out ahead depends on the city you choose and the job you move into. This guide compares the main costs.
Key facts
- Australian full-time adults earn an average of A$2,083.70 a week (about A$108,350 a year, May 2026). The UK full-time median is £40,911 a year (April 2026).
- Exchange rate used in this guide: £1 = A$1.92 (3 November 2026).
- London is more expensive than Sydney overall: day-to-day costs excluding rent are about 7% higher and rents about 11% higher.
- Groceries are dearer in Australia: about 18% more in Sydney than in London.
- Employers in Australia pay 12% superannuation on top of your salary.
Salaries: what you earn
| Australia | United Kingdom | |
|---|---|---|
| Typical full-time earnings | A$2,083.70 a week, about A$108,350 a year (average, May 2026) | £811.20 a week, £40,911 a year (median, April 2026) |
| In pounds | About £56,400 a year | £40,911 |
| Minimum wage | A$26.44 an hour from 1 July 2026 | Check the current National Living Wage on GOV.UK |
| Retirement contributions | 12% employer superannuation on top of salary | Workplace pension, typically a minimum 3% employer contribution |
The Australian figure is an average and the UK figure a median, so the gap is smaller in practice than the headline suggests. Compare salaries for your own occupation on our Australian salaries page.
Rent
Rent is the biggest cost for most new arrivals. Sydney and Perth rents are now close to London’s, while Melbourne is noticeably cheaper.
| City | Typical rent | Source |
|---|---|---|
| Sydney | A$843 a week (about A$3,650 a month) | Cotality, September quarter 2026 |
| Perth | A$798 a week (about A$3,460 a month) | Cotality, September quarter 2026 |
| Melbourne | A$600 a week (about A$2,600 a month), advertised | REA, September 2026 |
| National average | A$713 a week (about A$3,090 a month) | Cotality, September 2026 |
| London | £2,338 a month (about A$4,490) | ONS, September 2026 |
| Manchester | £1,380 a month (about A$2,650) | ONS, September 2026 |
| UK average | £1,406 a month (about A$2,700) | ONS, September 2026 |
Everyday costs: Sydney vs London
| Item | Sydney | London |
|---|---|---|
| Inexpensive restaurant meal | A$25.00 | £20.00 (A$38) |
| Mid-range meal for two | A$140 | £80 (A$154) |
| Cappuccino | A$5.70 | £4.21 (A$8.08) |
| Milk, 1 litre | A$2.44 | £1.41 (A$2.71) |
| Eggs, 12 | A$7.77 | £3.94 (A$7.56) |
| Monthly public transport pass | A$217 | £200 (A$384) |
| Petrol, 1 litre | A$2.12 | £1.64 (A$3.15) |
| Utilities for an 85m² flat, monthly | A$389 | £287 (A$551) |
| Home broadband, monthly | A$84 | £29 (A$56) |
| Mobile plan (10GB+), monthly | A$41 | £13 (A$25) |
Crowd-sourced prices from Numbeo, updated 11 to 12 November 2026, converted at £1 = A$1.92. Individual prices vary widely.
City by city: cost of living index
This index compares cities against New York (100). A lower number means cheaper; higher purchasing power means local salaries go further.
| City | Cost of living | Rent | Groceries | Local purchasing power |
|---|---|---|---|---|
| Sydney | 79.2 | 56.0 | 87.6 | 105.9 |
| Melbourne | 77.3 | 41.3 | 91.3 | 132.4 |
| Brisbane | 68.5 | 42.3 | 81.6 | 135.9 |
| Perth | 73.6 | 38.6 | 83.3 | 138.1 |
| Adelaide | 74.4 | 34.6 | 89.3 | 123.2 |
| London | 88.0 | 66.9 | 72.4 | 98.3 |
| Manchester | 67.7 | 38.0 | 64.4 | 105.6 |
| Edinburgh | 73.5 | 36.5 | 68.7 | 112.7 |
Numbeo, 2026 mid-year index.
The standout figure is purchasing power: in Melbourne, Brisbane and Perth local salaries go roughly 35% to 40% further than in London, because wages are higher relative to prices.
Income tax compared
| Australia (2026-27, residents) | England, Wales and Northern Ireland (2026-27) | |
|---|---|---|
| Tax-free amount | First A$18,200 | First £12,570 (personal allowance) |
| Basic or lower rate | 15% from A$18,201 to A$45,000; 30% to A$135,000 | 20% on the next £37,700 |
| Higher rates | 37% to A$190,000; 45% above | 40% to £125,140; 45% above |
| Other levies | Medicare levy of 2% | National Insurance on earnings |
Worked example (approximate): on the Australian average full-time salary of A$108,350, income tax is about A$23,000 plus a Medicare levy of about A$2,170, leaving roughly A$83,150 a year (about A$6,930 a month), with a further A$13,000 paid into your super by your employer. On the UK median of £40,911, income tax and National Insurance leave roughly £32,980 a year (about £2,750 or A$5,280 a month).
Healthcare
Once you hold a permanent visa you can enrol in Medicare, Australia’s public health system, which covers public hospital treatment and subsidises GP visits. Australia and the UK also have a reciprocal health care agreement that gives UK residents visiting Australia access to medically necessary care. On a temporary work visa you will usually need private health insurance as a visa condition. Many Australians on higher incomes also take out private hospital cover to avoid the Medicare levy surcharge.
Childcare and schooling
Centre-based childcare in Australia averages about A$14.50 an hour before the Child Care Subsidy, which most permanent residents can claim. In England, a part-time (25 hours) place for a child under two costs about £189 a week without funded hours. Public schooling is free for Australian citizens and permanent residents, although some states charge fees to children of some temporary visa holders.
So is Australia more expensive than the UK?
For groceries, mobile and broadband, yes. For rent, Sydney and Perth are now close to London, while Melbourne, Brisbane and Adelaide are closer to Manchester and Edinburgh. Higher Australian wages, 12% super and generally lower tax on middle incomes mean many British professionals and tradespeople are better off overall, especially outside Sydney.
See our full guide to moving to Australia from the UK, or find out which skilled visa fits you.
Frequently asked questions
Is Australia more expensive than the UK?
Groceries, broadband and mobile plans are more expensive in Australia, and Sydney and Perth rents are close to London levels. London’s day-to-day costs excluding rent are about 7% higher than Sydney’s, and higher wages mean salaries usually go further in Australia.
How much do I need to earn to live comfortably in Sydney?
It depends on your household, but with rents averaging around A$843 a week, a single person on the average full-time salary of about A$108,000 can live comfortably, while families usually need two incomes or a more affordable suburb.
Which Australian city is cheapest for British migrants?
Of the major cities, Adelaide and Brisbane have the lowest rents and Melbourne rents are well below Sydney’s. Perth has high rents but some of the highest purchasing power.
Can British citizens use Medicare in Australia?
Under the reciprocal health care agreement, UK residents visiting Australia can get medically necessary care. Once you hold a permanent visa you can enrol in Medicare in full.
Are salaries higher in Australia than in the UK?
Generally, yes. Average full-time earnings in Australia are about A$108,350 a year (about £56,400), and employers pay a further 12% superannuation on top.
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