Australia Ranks High in Cost of Living Survey

by Bob Sheth on July 9, 2010

in General Information

Living in Australia is not cheap anymore!The Mercer Worldwide Cost of Living Survey 2010 listed Australian and New Zealand cities as among the best places to live in for expatriate workers compared to other Asian cities in the region. Amongst the Australian cities listed in the survey, Sydney ranked 24th overall followed by Melbourne at No 33, Brisbane at No 55, Perth at No 60 and Canberra at No 74.

According to Mercer Senior Associate Anthony Shippard, the company evaluated the quality of living standards in each city to consider the true living standards in each location. He added that, “If we take into account the results of Mercer’s 2010 Quality of Living survey earlier this year, it found that Australian and New Zealand cities rank among the world’s top 36 cities for overall quality of living.”

The study according to Shippard was geared towards “Combining the cost of living findings with overall quality of living standards reinforces the need for multinational organizations to regularly review multiple external factors and data shifts when determining their expatriate management programs.” The comparative cost index comprised 200 items such as housing costs, transportation expenses, food costs, clothing and household goods among others.

As the country is being praised for its high cost of living, the Australian state of New South Wales will reflect such cost of living with many household expenses hiking its rates in the coming fiscal year. Electricity rates will increase by an average of 7 percent to 13 percent depending on the service provider. Gas customers will take on 5 per cent rate hikes in the city while regional consumers would be burdened by at least 13 per cent more. Also expected are water bill rates to have another Aus$68 more per year or an average increase of 5 per cent. Road tolls and taxi fares would also be increasing by 3 per cent.

Queensland households too will experience an increased financial burden of at least Aus$1,200 for the year. Electricity rates in the region would increase by 13.29 percent on top of other utility rate hikes in water, council rates and mortgage loan payments. Also included in the rate increases are food costs, childcare fees, road tolls, car registration and public transportation fare.

And these are just some of the states that have made an effort to determine the cost increases in annual household budgets. Many are concerned that the trend of costs of living is outpacing inflation. As of late, inflation has increased to about 41.3% compared to the rate of increase for expenses at 45.4% in Queensland alone. This makes fixed income earners such as pensioners and salaried individuals to cut on some necessities in order to make ends meet.

As the cost of living rises, the more income is needed to meet costs and this is the issue now more than ever for middle income Australia.

{ 3 comments… read them below or add one }

BadKen August 4, 2010 at 12:15 pm

I don't understand this article… It is 'praising' Australia for a high cost of living. Isn't that a bad thing? I'd certainly rather have a lower cost of living, all else equal.

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Darkpix March 13, 2011 at 2:27 am

What do you expect! it's overseas companies driving the cost of our bills thru the roof! they don't live here or even earn a normal wage. so why would they care. The problem now is government department are now practising the same poor inflation and bill styles of these overseas owners and a 2 income family can not afford a 3 bedroom house anymore. If they can, they just don't live, cause they can't afford to do anything other than make the house payments.

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james June 26, 2011 at 3:42 pm

Australia will be soon overrun with Asian Indians who live 3 and 4 families to a house. They will be the only ones able to afford to live in cities, well slums actually, and they will import all their class issues, their religious issues and their totally foreign values. Eventually, when your grandchildren ask why we gave the country away, why they cant find work but the Asians can, why they cant get into University but the Asians do, why the neighborhood is turning into a slum etc. reality will strike. The whole bs about multiculturalism was just a backdoor to Asian colonization with all the inherent corruption, crime and welfare dependency it will bring. So the cost of living is only a small issue.

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