Everyone thinks Australia is expensive as fuck - so how much does it actually compare to the UK?
5th December 2024
Money has always been SUCH a taboo in society. But if you’re planning a temporary trip or a permanent move to Australia, financing it is one of, if not the most, important factor in your planning.
I spoke briefly about how much I saved for my trip and how long (or little) it lasted in here.
But essentially I saved 10000 British pounds and that, my friends, was completely gone in about four months.
It’s no mystery that Australia is perceived as an expensive country, but that seems to be as far as anyone elaborates on the subject. So let me enlighten you.
TAX
It goes without saying that tax is fucking confusing no matter what country you’re in.
Here's a breakdown of what you need to know if you’re going to be on a WHV.
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Australia's tax year runs July-July
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If you earn anything ($1-45,000) during this period, you will get taxed at 15%,
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As long as you’re not earning over this threshold, you should not be paying anymore than that
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If you earn over $45000 and below $135000, then that gets taxed at 30%
As an example: if you earn $46,000, you’ll only be taxed at 30% for that extra 1k. So you will be paying a total of $7050 worth of tax altogether.
TAX RETURNS
A lot of people on WHV's do get taxed incorrectly, so you have to submit a tax return before the end of October.
[Just be mindful some people do end up OWING money back to the government so don’t be reliant on receiving a big fat sum of cash]
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My advice (if you don't think you're too tax savvy) would be to book an appointment with an accountant. It costs around $150-200 and they do everything for you, correctly. I took this route because I didn't want to fuck anything up.
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You can get your return back anywhere from as little as a week to three months, especially if there's complications.
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If you've been in Australia continuously for six months and have been working at the same job / living at the same address for most of this time, you can be classed as a resident for tax purposes.
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The tax-free threshold for Aussie's is $18,200, this is primarily what enables you to get a lot of your tax back.
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You can also claim your expenses in your return, this can be anything from your phone bill if you use your phone at work, to sun cream if you work outside - and trust me, it adds up.
WAGES
Yes Australia is expensive, but the wages are fucking good. My last job in the UK raised my pay to 9 quid an hour just before I left and I really thought I was making bank. In hindsight, I most definitely was not.
Most people on WHV's work in hospitality, tourism or retail and will most likely be put on a ‘casual’ contract. This is essentially a zero-hours contract, where you're paid a higher rate than you would be for a part/full time position because you don’t get any benefits such as holiday or sick pay.
You'll be on a ‘casual loading’ wage with additional % on top depending on the day:
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Weekday rates - standard
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Saturday rate - +20/25%
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Sunday rate - +50% (not all companies do this)
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Public holiday - double pay, or more
Your wage is obviously also determined by your age. I've been working in Aus between the ages of 22-24. The lowest standard wage I’ve ever been paid here has been $28 / hour. But I would say on average, mine and my friend’s standard rate has always between $29-33 / hour (even going up to $45 on Sundays. Considering the current UK living wage is £11.44 / hour (which equates to about $22) it puts a lot into perspective.
So is Australia more expensive than the UK?
Okay let's do some comparisons:
[It goes without saying that everything is relative, and completely depends on where you live both in Australia or in the UK. Oh and also, the Aussie dollar is basically almost double the pound.]
COFFEE
AUS
UK
Having (unfortunately) worked in my fair share of coffee shops in Sydney, Melbourne and the Gold Coast, I would say for a regular hot coffee (with alternative milk), you’re looking at around $5-5.50 (£2.60-80)
When I went back to the UK I was shocked at how expensive the coffee was, tell me why I was paying £4.50 for an iced latte at some places?! At my last cafe job in Aus, we charged $5.50 for an iced latte.
Consensus - clear winner here, Aus is cheaper (and miles better)
ALCOHOL
AUS
UK
There’s no two ways around it, alcohol is expensive here. Most bars / clubs are going to serve a single shot spirit+mixer, which is around $9-13 - and you are quite literally paying for 2 drinks if you want a double.
Beer/cider is mainly served as a schooner (this is bigger than a half pint but smaller than a pint) - a full pint is pretty spenny in most places.
If you’re a wine drinker you’re in luck as I’d argue that this is the only drink that’s actually reasonable.
Having come to Australia after spending over three years in Newcastle, I was lost for words at the prices of booze (just reminiscing on 3 trebs for £9 to be honest)
Those prices are now, however, probably non-existent.
When I went to out in London last year I could and couldn’t quite believe how expensive alcohol was, paying around £22 for two standard vodka lemonades. Even going out in Leeds was a lot pricier than I remembered.
Consensus - Australia, as a whole, is more expensive, but London takes the cake
EATING OUT
AUS
UK
Obviously there’s a spectrum to eating out anywhere.
On one end, I’d say fast food is definitely is more expensive here, where is the £1 saver menu at maccies please? Also, I feel like I'm always spending a fair amount of money if I'm ordering Uber Eats / Door Dash.
Chicken nuggets aside, I’d say both countries are roughly around the same. You’ve got boujee places and cheap places wherever you go and I’d say the scale is pretty equal in both countries.
Consensus - both roughly on par
GROCERIES
AUS
UK
When I first went to Aus I couldn’t believe how much food shops were costing me. The main difference between here and the UK I would say is that the two main supermarkets are pretty much the same, so you're paying similar prices wherever you go.
The longer I've been here the more I've realised that buying things in season is key, Australia is an island after all, and if you know when to get the cheap produce / deals then you'll be fine.
(I have seen a bag of grapes being sold at $25 though - how is this legal?)
After having gone back home one year later and stepping foot into Tesco, I realised how bad inflation has actually gotten and the UK seemed to be creeping up to par with Australia.
However, I do feel as though there's such a range of places to get groceries, from Aldi to Waitrose, so you can be more selective.
Therefore, I still think it’s cheaper overall, but give it another year or two and I wouldn't be surprised if it’ll be giving Aus a run for it’s money - literally.
Consensus - the UK is cheaper baby
GYMS
AUS
UK
In two years, the cheapest I’ve ever paid for a gym membership here is around $17/18 a week, and the most is $31 a week.
But best believe this is right on the cheap end of the spectrum. Gym culture is HUGE, particularly in the Gold Coast, and some gyms / pilates studios are actually insane, so don’t be shocked to see some places charging $60-70 a week for membership or classes.
Now, my gym membership at uni was dirt cheap, I was literally paying £30 a month, granted, this was two years ago and right up north in Newcastle.
I'd argue that workout culture has also risen exponentially in the UK, particularly London, with some friends saying they’re paying £25 a week and other upward of £50 a week?! for their memberships which is absolutely crazy to me
Consensus - at the pricey end of the spectrum I'd say they're equal, for the real cheap gyms at the other end, then I'd go UK.
HOUSING
AUS
UK
I’ve only ever rented in the Gold Coast and Melbourne so that’s all I can personally judge.
Sydney is its own entity and is beyond fucked - I literally had to leave because I couldn't find a place to live, so good luck to anyone moving there that’s all I’ll say!
The Gold Coast is becoming a very desirable area meaning that rent is increasing FAST. When I first moved there, prices averaged $250-300 a week for a nice room in a decent house, now you're extremely lucky to find anything below $300.
For the past 7 months I’ve been paying $300-350 for rent (not including bills), but this was for a veryyy nice house.
I've found Melbs to be cheaper, I didn't view a single property that was over $300.
I have only ever rented student housing in the UK, so feel free to take my opinion with a pinch of salt.
The renting crisis in London is just as fucked as Sydney, if not worse.
I have friends that are paying double the rent I pay for a box room in the most bang average apartment in London.
The more rural you go in the UK, the cheaper it’s most likely going to be, but who's really looking to rent somewhere in the middle of butt-fuck nowhere in your twenties?
Northern cities such as Newcastle aren't going to be as crazy as. London. Manchester is however, very quickly catching up to speed as the south.
Consensus - capital cities aside, you get more for your money in Australia
BILLS
AUS
UK
In Queensland law, most water bills are covered by the landlord, so you'll only be paying electricity and wifi.
I've paid between $3-6 a week for wifi, and anywhere from $44-80 a month for electricity.
In Melbourne, the water bills do have to be covered by the tenants, however I can vouch (|with certainty) that Australia is bounds cheaper than the UK when it comes to bills.
Bills in the UK are currently increasing at a very fast rate and have been for a while.
After asking a few friends what they pay for their bills, the average cost seems to sit at roughly £100 a month / £25 a week on top of rent. Comparing this to around $25 extra a week over in Aus, there really seems to be no question about where is cheaper here.
Consensus - Australia for sure
The bottom line...
Naturally, Australia is cheaper in some categories, and the UK in others, taking this into consideration, the overall consensus is that they’re both probably about the same.
(sorry if this is not the answer you're wanting to hear).
I will say, however, that if you’re coming to Australia expecting the absolute worst, then you don't need to worry as much, and will likely be pleasantly surprised. If you’re moving from London, you're definitely going to have a lower cost of living over here.
Whilst the object prices of things are sometimes higher in this country, due to the wages themselves being a hell of a lot higher, most things feel more affordable. So ultimately, I wouldn't let the financial aspect of a move over here discourage you whatsoever.