Cost of living in Australia compared to the UK

While there are many different issues to consider when looking at a move overseas, one of the main elements to take into consideration is the cost of living in your potential new homeland. Therefore we hereby enclose a look at the cost of living in Australia compared to the UK.

The general cost of living in Australia

In very basic terms the cost of living in Australia compares favourably to the vast majority of countries around the world which includes the UK. However, there is no doubt we have seen an increase in the cost of living in Australia over the last decade with many citing the 2000 Olympics as the catalyst for more interest in the country and a general increase in the cost of living.

Property

When looking to move overseas it is vital that you do your homework on the cost of property because ultimately if you are not able to afford a comparable home in Australia to that you are leaving in the UK this may well make you think again about moving. As you might expect, bearing in mind the UK has perhaps one of the most expensive property markets in the world, the cost of acquiring property in Australia compared to the UK is cheaper – however this is a situation which is changing.

There are concerns that the significant number of skilled immigrants moving to Australia, with many moving from the UK, is pushing property prices to levels which are unaffordable for many Australian nationals. The average property in Australia now sells for around 5.5 times household income which compares to around 5 times household income in the UK and 2.5 times household income in America. However, while this is not the situation across the country it is something you need to be aware of if you are looking to move to one of the more prominent areas of Australia such as Sydney, Melbourne, Perth, etc.

Transport cost

The cost of petrol in Australia compared to the cost of petrol in the UK shows why many believe that UK motorists are nothing but a “cash cow” for the UK tax authorities. The cost of petrol in Australia, while volatile in line with the oil market, is around half that of the cost in the UK which has a massive impact upon transport costs across Australia. When you bear in mind that Australia is a massive country with a need for an affordable and reliable transport network, it is just as well that petrol is relatively cheap compared to the UK!

Income tax in Australia

Income tax in Australia is higher than that charged in the UK although due to the demand for highly skilled immigrant workers in the country it is possible to earn more money in Australia than you would perhaps earn in the UK. While the countries have a similar top tax band it is the bottom range where the differences occur with the standard Australia rate around 30% compared to 22% in the UK. However, it is worth noting that income tax (and other tax charges) will change on a regular basis and you need to be aware of the situation at the time.

It is also worth taking into account that each and every person in Australia will be charged an additional levy of 1.5% on their income to cover the Medicare system which is very similar to the NHS in the UK.

The cost of food in Australia

As we touched on above, the cost of living in general in Australia has increased over the last decade and we have seen a large increase in the cost of food. While it is still on the main cheaper than the UK, the difference between food costs in Australia and food costs in the UK has reduced markedly and is likely to continue to do so as the Austrian economy and population continues to grow.

More and more Australians are now enjoying a higher standard of living than they have done in the recent past and with the economy attracting some of the best skilled immigrant workers from the likes of the UK it seems that the standard of living in Australia, at least for those in employment, should continue to rise for the foreseeable future.

However, it is unlikely we will see a rise in the standard of living without a rise in the cost of living and even though Australia is cheaper than the UK there is not too much in it these days.

The difference in the cost of living across Australia

It is difficult to put into words how different the cost of living in Australia can be between the larger cities such as Sydney, Melbourne, Adelaide and Perth for example against the smaller towns and villages dotted around this massive country. In many ways it can be more expensive to live in some of the more prominent areas of Australia when compared to the UK but this in many ways is because of the ongoing success story of Australia and the number of immigrants the country continues to attract.

The truth is that whatever standard of living you are looking for in Australia and whatever your budget there will be a town or city to suit your needs. However, finding employment may be a little more difficult because of the high concentration of skilled employment positions in the more prominent cities of Australia.

Conclusion

It is easy to see why so many expats are considering a move to Australia to start a new life although the historical difference in the cost of living in Australia compared to the UK has reduced significantly over the years. As we touched on above, in many of the more prominent cities of Australia it may well be more expensive than the average UK cost of living but this will depend upon the lifestyle you are looking for and your finances.

The reason why the cost of living in Australia continues to rise is purely and simply because this is a major success story in terms of economic growth and prosperity. The authorities have recently shown a deep understanding of the economic situation and indeed Australia was one of the first countries to exit the worldwide recession. Controlling the increase in the cost of living, while ensuring that the economy does not overheat, are challenges which the Austrian authorities will need to tackle in the months and years ahead.

Related posts:

1. Cost of living in Australia
2. Cost of living in Australia compared to the US
3. Living in Sydney
4. Living in Perth
5. Living in Adelaide

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