The costs of living globally have been rising in the past few years. In Australia, ABS statistics show that annual costs rose up to 3.1% in the year to June 2025, with variations depending on the household type. While this is a drop from the previous recorded highs of close to 10% in 2023, it’s still significant. If you’re an expat in Australia you’ll need smart financial planning ideas to make your money go further.

This guide walks through ideas for Australian expats to save money, from government support, to smart shopping, and ways to manage your international finances for less, with providers like Wise.

Understanding the cost of living in Australia

The cost of living in Australia does vary depending on factors like where in Australia you’re based, and whether or not you’re living in a major city, town or rural area. Here are a few things to consider when you’re planning your Australian finances: 

Housing: Housing costs in Australian cities can be very high, with wide reporting through 2024-5 covering the increasing number of city districts which have unaffordable rents for regular workers. Sydney, Melbourne and Brisbane in particular can be hard to find affordable accommodation, so remaining flexible with your location and looking at places outside of the city center may be helpful.

Healthcare: Medicare is the Australian universal health insurance scheme which offers some subsidised health care to eligible residents. You’ll pay a Medicare levy depending on your income level, which covers some care but bear in mind that you’ll usually have to pay some costs for dental care, eye care, and elective surgeries. Some migrants opt to pay for private health care to cover all eventualities and to foot the bill where medicare isn’t enough.

Childcare and schooling: Australia doesn’t have any free childcare system – although plans are in place to bring this in from 2026. Schooling is free for Australian citizens and permanent residents, but there are still costs such as uniforms to consider. If you’re using the private school system, fees can be significant.

Food: Australia has a very broad range of grocery retail chains which allows you to choose between services based on price and preference. Most stores offer basic ranges which are quite economical, through to luxury items.

Transportation: Transport costs in Australia vary on a state level – for example, Queensland has 50 cent fares which present excellent value for residents. While public transport is reasonably good in major cities it may be sparse or non-existent in smaller towns and villages. Check if you’ll need a car of your own to make life practical, as this can push up costs a lot.

Entertainment: Entertainment costs in Australia depend entirely on your interests and preferences. Thanks to the outdoors lifestyle and great climate in many areas, there are lots of free activities in many cities, as well as more costly options.

This guide covers some places to look if you’re planning your Australian budget, including practical steps you can take to reduce your day to day bills. 

Saving on housing and accommodation costs

In Australia, your housing and accommodation costs are likely to be the biggest outgoing you have. Here the key is shopping around, including looking at different locations if you’re able to. Regional cost variations are huge, so being flexible with the area you choose to settle in can save a lot of money. 

Costs of housing relative to income earning opportunities also matter. The percentage of income spent on housing tends to be highest in Sydney, Perth and Brisbane according to government statistics, while residents of Melbourne and Adelaide tend to spend less of their income on accommodation on average.

Don’t forget that there may be additional costs involved with housing, depending on your circumstances – such as bushfire insurance in vulnerable areas.

Finding affordable housing

If you’re planning to rent in Australia, you’ll want to take some time to get to know the rental market in the city or town you’re going to be living in. You’ll usually be able to find house-sharing and co-living options in cities with websites like Flatmates, and there’s specific student accommodation in cities with large universities. 

The costs of renting in the center of a large city can be very high in Australia. However, in most cities, you’ll be able to look at a variety of different suburbs to find an option which balances convenience and cost for your specific needs.

Private landlords may be open to negotiating rent and lease terms, depending on the situation. You may find a landlord will offer a discount on rent if you pay several months up front for example.

Reducing utility costs

Australia’s climate is likely to mean you have fairly high utility bills for cooling your property during summer, with heating necessary over winter in the south. This means you’ll need to find the best value energy supplier for your needs, and take steps to conserve energy use where possible. 

The Australian government’s Energy Made Easy website is an excellent place to get ideas and advice. You can compare suppliers and get tips on how to limit the costs of your energy, as well as information about how to understand your bill.

Water is a precious resource, and so there are various government and state level plans to help encourage water conservation. Government advice, including links to local money saving and grant pages is available online.

When you’re looking at the costs of energy, you can also compare the costs of phone plans and internet which are also often featured on comparison websites like Finder to let you get the best deal for your needs.

Food and grocery savings

Food costs in Australia may feel quite high, depending on where you’ve lived previously. However, there’s huge competition for customers across grocery retailers which does help drive down the costs of core products.

Smart grocery shopping

Here are a few local tips to help your grocery budget go further in Australia:

• Aldi and Woolworths are generally considered to be the best supermarket chains for budget shopping
• If you’re using a card to buy groceries, look out for EFTPOS charges which can push up costs – charges should be displayed, and in many cases can be avoided by using a different payment method
• Store loyalty programs like Woolworths Everyday Rewards can be an excellent way to get discounts and earn rewards with your preferred stores
• Apps like Too Good to Go offer discounted short dated food which can be a great bargain if you’re lucky
• Local markets (outside of tourist towns) can be a great place for low cost seasonal produce
• Bulk buying pantry goods can help save money – and using meal planning strategies goes a long way to avoid food waste

Eating out and entertainment on a budget

Your entertainment budget in Australia will depend a lot on what you like to do for fun. Here are some ideas to help stretch your cash a little further:

• If you like to eat and drink out, look for happy hour deals and lunch specials which are very common in pubs and restaurants
• Many Australian museums, including world class attractions like the the National Museum of Australia in Canberra and Sydney’s Australian Museum, are free for visitors
• Australia has some excellent parks, national parks and beaches which can be used for walking, swimming, jogging, picnics and other leisure activities with no fees
• For low cost shopping, look out for charity shops, car boot sales (trash and treasure markets) and second-hand markets for some excellent deals

Transportation costs

Public transport in Australian cities is generally pretty good, with measures in place to limit the costs to commuters and visitors in many cases. For example in Sydney you can get Opal card discounts, off peak savings and a cap on the costs you pay overall. Melbourne’s Myki card has daily and weekly caps and also offers free tram use in the CBD.

As the population density outside of major cities is quite low, Australia’s rural areas, smaller towns and villages may have infrequent public transport options, making it essential to own a car. Here you’ll need to consider the costs of parking, fuel and maintenance. Most roads are toll free, but some tolls do apply – particularly in New South Wales, Victoria, and Queensland.

Alternative options include walking and cycling. Here the practicality depends on the type of travel you need to do. Some Australian cities are extremely walkable, and cycling on the roads is common in some areas. Cities like Sydney are working to increase cycling by helping with route maps, bike maintenance and even cycling lessons for kids. Cycle paths exist in most cities, but collisions between cyclists and vehicles (and pedestrians) do still happen.

Banking and financial costs

As an expat in Australia banking costs could be a concern. Everyday accounts usually have quite simple ways to waive the monthly fee, but there are other costs to consider when you transact. You may also want to get Australian based options to save and invest. 

Here are some things to think about: 

• Australian banks offer good account products which often have ways to waive monthly fees by holding a minimum balance
• New arrivals in Australia can often benefit from promotions on banking fees – check out the service fees before you sign up though
• Major banks offer savings and Superannuation (pension) account and planning support
• First Home Owner Grant schemes may be available for property purchases

For managing your money flexibly across currencies, the Wise Account and linked debit card are especially handy for spending at home and abroad, with no monthly fees, and the mid-market rate. You can receive AUD and other currencies to your Wise Account, making it easy to keep on top of your finances day to day.

Choosing the right account

Australian bank accounts are generally split into transaction accounts for day to day use, and savings accounts for interest earning opportunities. Having a local AUD account is pretty essential in Australia, to pay rent and access services like a mobile phone contract.

• Compare a few different accounts to choose the right one – there are often no-fee banking promotions for new customers and new arrivals in Australia, which can help
• If you’ll need to deposit cash or prefer to bank in person, look at banks with branches close to your home – banking hours are commonly 9:30 – 4 in Australia, and so getting to a branch during the working week can be a challenge if it’s not close
• Look for a bank which has no ATM fee and which is in a global network to allow you to withdraw for free overseas
• Transaction accounts may offer an overdraft – this can come with fees, so make sure you know what your account conditions are if you need credit services
• Multi-currency accounts like Wise can be beneficial to keep costs low for international people when receiving and sending overseas payments

Credit cards

The Australian market offers a very good choice of credit cards, including ways to earn rewards, cash back and airmiles as you spend.

Credit cards are offered based on your credit score, income and personal situation. You’ll usually have to be an Australian resident with at least 6 months left on your valid visa when you apply.

Credit cards have extremely varied credit limits and interest costs, so shopping around is essential to make sure you don’t end up spending more than you need to on fees.

Managing your finances internationally

Managing your finances internationally can mean dealing with a few specific challenges, such as the costs of currency conversion and foreign transaction fees. Here are a few tips:

• Look carefully at currency conversion fees when you send or receive payments from abroad – your bank may add its fee into the exchange rate used, making this hard to spot
• If you transact internationally, look for a provider which has the mid-market exchange rate, and avoid hidden fees and markups
• Some providers let you set automatic conversion instructions and rate alerts which can be helpful for timing international transfers to get the best available rate

For day to day money management and international payments, check out Wise’s multi-currency account. You get mid-market exchange rates, with ways to receive 8+ currencies with local account details, and send to 140+ countries. There are even automatic fee discounts for large transfers over 20k GBP equivalent.

Saving on healthcare and insurance costs

When you’re a resident in Australia you’ll usually need to pay a Medicare levy, which is a fee paid to access the Australian universal healthcare scheme.

Medicare covers costs or offers subsidies on many health care fees, with options for bulk billing doctors and medical centers in many cases. This means that the doctor charges Medicare for your care, and you don’t have to pay anything up front.

Medicare doesn’t cover all health costs, so many Australian residents also get private health cover to pay for things like dental and eye care.

Building an emergency fund as an expat

Having an emergency fund as an expat gives peace of mind and can be essential if your situation changes when you’re away from your usual support network. If possible, you’re usually advised to set aside 3-6 months expenses which you can draw on if you lose your job, or run into other sudden financial problems.

If you’re building an emergency fund, make the most of your money by looking for high-yield savings account options – often some of the best deals are from online only accounts. 

Remember also to keep your emergency funds accessible across borders in case of emergencies in Australia or your home country. Here Wise can help with 40+ supported currencies and easy ways to withdraw your funds, or send fast payments to 140+ countries if you ever need to. 

Long-term financial planning

If you’re planning on being in Australia for a significant period of time, you may be thinking longer term about managing your financial planning there. 

In this case you’ll probably want to consider your Superannuation/Super (pension) options, as well as investment and saving opportunities. Banks like Commbank offer Super plans, and explanations of the types of contributions you may want to make to your Super to help you decide how to proceed.

There’s no single best approach to planning your long term finances – it’ll come down to your goals and your personal preferences. For example, some expats may choose to invest in an Australian property as a home to live in, and an asset to sell at a later stage. However, this is not without risk – and so as with any financial decision, getting professional advice is a good idea.

While you’re thinking longer term you may also want support with repatriation financial planning, depending on where and when you expect to leave Australia. Moving your finances to a different country can be complex and have tax implications – so knowing what to expect early on is a benefit.

Conclusion

Saving money in Australia as an expat is possible, but the exact steps to take will depend a lot on your personal situation. Here are a few final thoughts:

• If you have flexibility about where you live, choosing lower cost accommodation outside of the city center can help reduce your major costs significantly
• Shop around and compare providers for utilities, phone, wifi and other essential services – there are lots of comparison resources to help you snag a good deal here
• When planning your grocery budget look for the best balance of cost and convenience – some major stores like Aldi are cheap to use, but may not be in the most convenient location for you
• Be creative when planning your leisure time – there are lots of free things to do in Australia, particularly if you like the outdoors

Building financial stability as an expat living in Australia can seem challenging but can be achieved with small, sensible steps. This guide gives some ideas – and as someone living an international lifestyle it’s also well worth cutting out unnecessary money management costs with a provider like Wise. Use Wise to hold and exchange 40+ currencies with no ongoing fees and the mid-market rate.