Cost of living in Australia compared to America

For many Americans the biggest surprise about Australia is not the price of coffee but the cost of healthcare: or rather, how little of your pay goes on it. Rents in Sydney and Melbourne are well below New York and Los Angeles, while groceries and petrol are dearer. This guide compares the main costs.

The Australian figure is an average and the US figure a median, so like-for-like gaps are smaller. Paid leave also differs: full-time Australian employees are entitled to four weeks of paid annual leave a year. Compare salaries for your occupation on our Australian salaries page.

Australian rents cover all dwellings; US figures are median asking rents for 0 to 2 bedroom homes, so treat the comparison as a guide.

Crowd-sourced prices from Numbeo, updated 11 to 12 November 2026, converted at A$1 = US$0.698. Tipping is not expected in Australia, which lowers the real cost of eating out compared with the US.

Numbeo, 2026 mid-year index, New York = 100.

Australian cities are cheaper than New York and Los Angeles but broadly similar to Chicago and Dallas.

In 2026 the average employer-sponsored family health plan in the US costs US$28,303 a year, of which the worker pays on average US$7,471 (US$9,687 at small firms), before deductibles averaging US$1,955 for single cover. In Australia, permanent residents can enrol in Medicare, which covers public hospital care and subsidises GP visits and many medicines. Australia does not have a reciprocal health care agreement with the US, so on a temporary work visa you will need private health insurance as a visa condition until you become a permanent resident.

US citizens remain subject to US tax filing on worldwide income while living abroad. Take advice from a cross-border tax specialist before you move.

Centre-based childcare in Australia averages about A$14.50 an hour before the Child Care Subsidy, which most permanent residents can claim. In the US the national average price of childcare is about US$13,184 a year. Public schooling in Australia is free for citizens and permanent residents, although some states charge fees to children of some temporary visa holders.

Compared with New York, Los Angeles or San Francisco, usually yes: rent is lower, healthcare is far cheaper once you are a permanent resident, and there is no tipping. Compared with Texas or the Midwest, day-to-day costs are similar or slightly higher, but the healthcare saving and 12% super often tip the balance.

See our full guide to moving to Australia from the USA, or find out which skilled visa fits you.

Is it cheaper to live in Australia or the US?

Australia is generally cheaper than New York and Los Angeles, with Sydney rents about 44% lower than New York. It is broadly similar to cities such as Chicago and Dallas, but healthcare costs are much lower for permanent residents.

Do Americans get Medicare in Australia?

Not on a temporary visa, as there is no reciprocal health care agreement with the US. Once you hold a permanent visa you can enrol in Medicare.

Are salaries higher in Australia than in the US?

Average full-time earnings in Australia are about A$108,350 a year (about US$75,600), and employers pay a further 12% superannuation on top. US median full-time earnings are about US$64,060.

Do I still pay US tax if I move to Australia?

US citizens must continue to file US tax returns on their worldwide income. Foreign tax credits and exclusions often reduce or remove US tax owed, but you should take specialist advice.

Which Australian city is best value for Americans?

Brisbane, Perth and Adelaide offer lower rents and high local purchasing power. Melbourne has lower rents than Sydney with a similar big-city lifestyle.