Cost Of Living In Australia Vs UK

Australia and the UK offer compelling relocation options owing to their top-notch educational systems, high standards of living, and diverse populations.

Australia makes it to the 13th spot on the list of countries with a high cost of living., whereas the United Kingdom takes the 33rd spot. So, living in Australia is on average more expensive than living in the United Kingdom.

But that doesn’t necessarily mean Australia will be expensive for everyone. The cost of living comprises many individual expenses and factors. It’s crucial that you estimate your personal living costs in both Australia and the UK before comparing them.

And we’re here to help you do that! Keep reading to find out what the living expenses are like in the UK and Australia below.

Cost Of Living Comparison: Australia Vs. UK

While Australia and the United Kingdom are very different countries, they both offer a similar list of benefits to those considering relocation.

These include attractive healthcare benefits, excellent education systems, job opportunities, better lifestyles, cultural diversity, and security. While Australia has a great outdoor lifestyle to boast of, the United Kingdom has scenic hiking trails and countryside.

Both also promise a dynamic culinary and art scene, besides some great nightlife and entertainment.

No matter how you like to spend your days, the UK and Australia have plenty to offer to everyone.

But the expenses of living in either of these countries couldn’t be more different. Even more so when you consider how unique every person’s lifestyle looks.

Let’s find out how much your yearly budget has to be to live in Australia and the United Kingdom!

Australia vs UK: Housing

Housing will make up the first big chunk of your living expenses anywhere. Your two options are renting or owning property, both of which come with their pros and cons. And not to mention budget differences and capabilities.

Rent Prices

Renting a home in the United Kingdom is more affordable than renting one in Australia, with a 32% difference in prices. Here is a quick guide to rental prices in both countries.

Rent Per Month	Australia (USD)	UK (USD)
A 1-bedroom apartment in the city’s center	$1,518.97	$1,086.56
A 1-bedroom apartment away from the city’s center	$1,181.24	$833.35
A 3-bedroom apartment in the city’s center	$2,527.30	$1,930.70
A 3-bedroom apartment away from the city center	$1,771.19	$1,452.75

Australians end up paying much higher rent than UK citizens.

Apartment Purchase Prices

If you intend to purchase or loan an apartment in either of these countries, here are the prices you must consider.

Apartment Type	Australia (USD)	UK (USD)
Price per square meter for an apartment in the city’s center	$7,282.88	$5,296.78
Price per square meter for an apartment away from the city center	$5,257.95	$3,914.38

Australia’s real estate market is more expensive than that in the United Kingdom. But things differ when you take a look at the citywide prices. If you’re considering particular cities in either country, make sure to check prices for those locations.

Tip: Interested in buying a property in Australia or the UK? We have created a transferring money to and from Australia guide that showcases the best companies to work with if you need to send large sums of money between the two countries.

Australia vs UK: Salaries

A salaried individual living in Australia can expect to take home an average monthly salary of $3,645.12 after taxes, compared to $2,774.88 in the UK.

Australia generally provides graduates with more job opportunities and higher pay for comparable roles than the UK. Here is a comparison of the high-demand career opportunities in various industries below and their salaries in the two countding.

Annual Salaries for Different Job Roles

Jobs	Australia (USD)	UK (USD)
Finance Manager	$69,486.14	$47,441.25
Event Manager	$46,291.91	$33,636.12
Data Analyst	$50,718.79	$34,738.17
UX Designer	$51,545.56	$38,787.05
Civil Engineer	$92,575.04	$38,753.40

Australia vs UK: Food

Food is the next major and unavoidable living expense to calculate into your budget. Depending on your lifestyle habits and preferences, there are two types of food-related expenses you need to consider. These include groceries and dining out.

Groceries

The cost of groceries in the United Kingdom is 59.5% cheaper than in Australia. Let’s take a closer look at the price differences between popular grocery items in both countries.

Grocery Items	Australia (USD)	UK (USD)
Eggs (12) (regular)	$3.80	2.52
Milk (1 liter) (regular)	$1.47	$1.20
Cheese local (1 kg)	$8.94	$7.04
A loaf of white bread (500 g)	$2.23	$1.23
Rice (1 kg) (white)	$2.11	$1.66
Tomato (1 kg)	$4.95	$2.45
Potato (1 kg)	$2.47	$1.28
Lettuce (1 kg)	$2.56	$0.85
Onion (1 kg)	$2.08	$1.17
Apple (1 kg)	$3.28	$2.31
Banana (1 kg)	$2.61	$1.31
Oranges (1 kg)	$2.96	$2.14
Beef round (1 kg)	$14.79	$10.68
Chicken fillets (1 kg)	$8.39	$6.85
Domestic beer (0.5 liter-bottle)	$4.42	$2.15
Imported beer (0.33 liter-bottle)	$4.82	$2.47
Bottle of wine (mid-range)	$12.45	$8.43
Cigarettes (20 pack) (Marlboro)	$27.66	$14.46
Water (1.5-liter bottle)	$1.73	$1.19

Grocery shopping in Australia is sure to burn a bigger hole in your pocket than in the UK. About every grocery item on your list will cost more in Australia than in the UK. So, no matter what you’re buying, you’ll spend more at an Australian supermarket.

Dining Out

If you thought eating out would be an easy solution to expensive groceries, you’ve miscalculated the situation. Dining out is 9.3% more expensive in Australia than in the UK.

Take a look at just how much more you’re paying and for what items.

Restaurant Experiences and Menu Items	Australia (USD)	UK (USD)
Cappuccino (regular)	$3.46	$3.53
Coke/Pepsi (0.33 liter bottle)	$2.61	$1.77
Combo meal at McDonald’s or equivalent chain	$9.68	$7.23
A meal at inexpensive restaurant	$17.29	$18.07
A three-course meal at a moderate restaurant (for two people)	$76.07	$66.25

Dining out in Australia is only slightly less expensive if all you’re consuming are basic meals at inexpensive restaurants or regular cappuccinos.

Australia vs UK: Taxes

Taxes	Australia	UK
Income Tax	0 to 45%	0 to 45%
Real Estate Tax	0.3% to 1.1%	3% to 15%
Sales Tax	10%	20%

The UK employs a progressive tax rate of between 0% and 45%. This means incomes below £12,570 (or USD 15,099.46) in the United Kingdom do not get taxed, while any income earned above £150,000 (or USD 180,184.51) gets taxed at 45%.

Although Australia also has a progressive tax rate of between 0% and 45%, the income levels and tax slabs differ. In Australia, an income below AUD 18,200 (USD 12,553.18) does not attract any tax, while any income above AUD 180,001 (USD 124,153.01) attracts a tax rate of 45%.

When it comes to sales tax, in the UK, most goods and services come with a standard tax rate of 20%, while in Australia, it is only 10%.

Australians pay a relatively low property tax of between 0.3% and 1.1%, in comparison to the United Kingdom’s 3% to 15% real estate tax.

Australia vs UK: Utilities

Utilities	Australia (USD)	UK (USD)
Basic utilities for 914 sq. ft. apartment (electric, water, heating, cooling, garbage)	$200.87	$230.18
Internet (60 Mbps and more, with unlimited data) (Cable/ASDL)	$58.12	$36.14
Prepaid mobile tariff local (1 min)	$0.46	$0.15

Utilities are probably the only living expense that you will pay the same bills for in both countries, except for a slightly higher internet bill in Australia.

Australia vs UK: Childcare

Bringing up a family with one or more children is quite difficult compared to living alone. It is a crucial factor to consider when calculating one’s cost of living expenses.

Parents of preschool children have it harder in Australia, while parents of primary school children have it harder in the United Kingdom.

Here are the particulars based on major expenses for two different age groups.

Childcare Expenses	Australia (USD)	UK (USD)
Preschool/kindergarten, full-day, or private childcare for 1 child (per month)	$1,552.28	$1,251.59
International primary schooling for 1 child (annually)	$13,313.85	$16,402.23

Australia vs UK: Crime Rates

Both the UK and Australia experience a moderate level of crime and have recently seen a sharp increase in criminal activity.

However, Australia ranks 10th on the list of safe countries, whereas the United Kingdom makes it to the 17th position. The United Kingdom scores only 60.1 on the safety meter, while Australia scores a nice 86.9.

Here are some key crime rates for both countries:

Crimes	Australia	UK
Homicide Rate	1.31 per 100k	0.51 per 100k
Stabbing Death Rate	0.48 per 100k	0.08 per 100k
Gun Death Rate	0.18 per 100k	0.04 per 100k

Takeaway

Both Australia and the United Kingdom have similar attractions for people looking to move there. However, they’re not equally affordable in terms of living expenses. However, Australia does also offer higher salaries than the UK.

Hopefully, this guide has helped you understand and calculate your personal living expenses in both the UK and Australia.

We hope that wherever you decide to relocate, you have a wonderful adventure!

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