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How Shockingly Expensive is Australia in 2025? You Need to See This!

From soaring rent to skyrocketing groceries, discover what’s really driving up the cost of living down under—and how you can survive it.

Author

Ark
July 07, 2025

The Cost of Living in Sydney, Australia: A Local Perspective

Sydney, New South Wales, is Oceania’s most populous city, renowned for its stunning landscapes and vibrant community. But what does it cost to live in this beautiful city? In this article, we dive into the expenses of daily life in Sydney, from salaries to rent and groceries to healthcare, based on the experiences of Wade, a born-and-bred Aussie from Penrith, and Marielle, who moved from the Philippines to Sydney in 2010. Now living in Bondi, they share a detailed breakdown of their costs, offering insights into the financial realities of calling Sydney home.

Salaries and Superannuation

The average annual salary in Sydney, according to Salary Explorer, is approximately AUD 108,000. This figure is higher than the national average, as larger cities like Sydney and Melbourne typically offer higher wages. After accounting for taxes and a mandatory 10.5% superannuation contribution—a government-mandated retirement savings scheme—the take-home pay is around AUD 81,233 per year, or roughly AUD 6,769 per month. For non-Australians, superannuation is similar to a 401(k) in the U.S., designed to secure funds for retirement, typically accessible after age 65.

Housing Costs

Housing is one of the most significant expenses in Sydney, particularly in desirable areas like Bondi, close to the city center. For a studio apartment in this area, weekly rent averages around AUD 700 for a fully furnished unit. Two-bedroom apartments in similar locations can cost upwards of AUD 1,500 per week. Rent prices decrease further from the city, but even in suburbs like Rhodes, costs remain substantial. Homeownership, often called the “Great Aussie Dream,” is increasingly out of reach, with two-bedroom apartments in Bondi starting at AUD 2 million and some listings reaching as high as AUD 11 million.

Utilities and Connectivity

For a two-person household in a studio apartment, utility costs include:

  • Electricity and Gas: Approximately AUD 150 per quarter each, or about AUD 50 per month per utility.

  • Water: Around AUD 200 per quarter, with usage charges minimal (about AUD 10) and the bulk of the cost coming from connection fees (around AUD 150). Renters typically don’t pay water bills, as these are covered by landlords.

  • Internet: Unlimited NBN (National Broadband Network) plans cost around AUD 99 per month.

  • Mobile Phones: Costs vary from AUD 50 to AUD 100 per month, depending on the plan and usage. Budget options, like prepaid plans from providers such as Aldi, can be as low as AUD 25 per month.

Transportation

Sydney’s public transport system, including buses, trains, and ferries, is reliable, and bike lanes make cycling a viable option. However, owning a car is often necessary for trips to outer suburbs. A six-year-old car purchased for AUD 35,000–38,000 incurs ongoing costs:

  • Fuel: Approximately AUD 80 to fill up, covering about 500 kilometers.

  • Tolls: Around AUD 15 each way for certain routes, adding up quickly for regular commuters.

Parking in the city is another expense, with street parking costing AUD 5.90 for just over an hour, while private parking can be AUD 13 for the same duration.

Groceries and Dining

Grocery costs depend on lifestyle and preferences. A small online grocery order from a major supermarket like Woolworths costs around AUD 55.61, including a AUD 15 delivery fee and AUD 0.50 for reusable bags. Specialty items, such as Filipino products, add to the total—Marielle spent AUD 34.10 at a Filipino store for items like salted egg milkfish and papaya pickles and AUD 6.90 at an Asian store for chili garlic sauce, totaling around AUD 53 for supplementary shopping.

Dining out in Sydney can range from casual to extravagant. A fine-dining experience at Matisse, featuring an eight-course degustation menu (effectively 10 dishes), costs AUD 225 per person, with cocktails at AUD 25 each. A meal for two, including drinks, totaled AUD 500—an indulgent but memorable experience.

Healthcare

Australia’s Medicare system provides government-funded healthcare, covering a portion of medical expenses for citizens. However, out-of-pocket costs, known as the “gap,” remain. For example:

  • A GP visit costs around AUD 104–106 (with a credit card surcharge), with AUD 60 reclaimable through Medicare.

  • Some clinics offer bulk billing, where Medicare covers the full cost, but availability varies by location and quality of service.

  • Dental procedures, like wisdom teeth removal, are costly. Removing two upper wisdom teeth cost AUD 1,300, plus AUD 400 for anesthesia, with private health insurance covering about AUD 400, leaving a significant out-of-pocket expense.

Personal Care and Fitness

Personal care and fitness expenses reflect individual priorities. Marielle’s gel pedicure, including removal, cost AUD 65, which she considered reasonable. Fitness costs vary:

  • A gym membership costs AUD 35.95 per week, though Marielle admits to infrequent visits.

  • Casual gym visits range from AUD 20–30, with discounts for personal training sessions (AUD 95 per session).

  • An adult swimming refresher course costs AUD 190 for four sessions, or AUD 47.50 per session.

Is Sydney Worth It?

Sydney’s cost of living is undeniably high, driven by housing, dining, and healthcare expenses. However, the city’s stunning beaches, vibrant culture, and quality of life make it a dream destination for many. Wade and Marielle’s experiences highlight the trade-offs—while costs like AUD 700 weekly rent or AUD 500 fine-dining bills may seem steep, the lifestyle and opportunities in Sydney often justify the price for residents. Whether it’s worth it depends on your priorities—beautiful landscapes and a dynamic community come at a premium.

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