How Much Does It Cost to Live in Australia in 2026?

No official dollar figure covers Australia's 2026 cost of living — this guide shows new PRs how to budget for housing, food, transport and utilities.

Published: 10 July 2026 Reading time 12 min

There is no official dollar figure for the cost of living in Australia, and the Department of Home Affairs does not publish one. Its "Managing your finances" page under Settle in Australia instead warns that living in Australia can be expensive and that food, transport, housing and utilities are among the items you will need to pay for on a consistent basis. The practical answer to "how much", then, is not a national average but a method: learn the rough cost of your own essential items, and put them into a budget before the bills arrive. For a new permanent resident who has landed without a settled income, that method is what decides whether the first six months are manageable.

Is there an official cost-of-living figure for Australia?

No. The Australian Government's settling-in material describes the cost of living qualitatively rather than numerically, naming food, transport, housing and utilities as the recurring categories and warning that being caught out by these prices is what leaves people unable to pay their bills. What the page does prescribe is a response: get to know the rough cost of your essential items in advance.

That matters more than an average would. Housing and transport are the two line items that swing most widely depending on the suburb you settle in and whether you run a car, so a national figure would describe someone else's life, not yours.

Which expenses should a new arrival list first?

Start with the four categories the official guidance names, then add the recurring claims on your money that the same guidance covers elsewhere — bank account fees, credit and loan repayments, and tax.

Category	What to record	Cycle
Housing	Rent or mortgage payment; any loan repayment tied to property	Weekly, fortnightly or monthly, as charged
Food	Groceries and household supplies	Weekly or fortnightly
Transport	Public transport fares, or the running costs of a car	Weekly or per trip
Utilities	Typically electricity, gas, water and internet	Monthly or quarterly
Banking costs	Account keeping and operating fees charged by your institution	Monthly
Credit and loans	Minimum repayments on credit cards or personal loans	Per statement
Tax	Income tax owed on what you earn	Per pay cycle

The table is a template, not an estimate. The figures that go into it have to be the ones you are actually quoted or charged, because those are the only numbers that will match your bank statement.

How do I build a budget before my income is stable?

The official guidance recommends a simple budget that identifies your earnings and your expenses over the course of a week, fortnight or month, and notes that this is also what lets you plan savings and manage debts. Pick the cycle that matches how money will arrive — fortnightly if your first job pays fortnightly, monthly if you are living on savings.

Work in a fixed order: earnings first, then the essential items in the table, then everything else. Anything in the "everything else" column is discretionary until your income is confirmed, not a commitment. If your income is irregular, build the budget against the lowest month you realistically expect and treat anything above that as savings rather than as spending room.

Suppose a new arrival has an offer of work starting in six weeks and savings to cover the gap. That budget would run on a fortnightly cycle, list housing, food, transport and utilities as the non-negotiable lines, cap discretionary spending at whatever remains after those four, and be revised on the day the first payslip lands. This article is general information only and is not personalised financial, tax or legal advice — confirm current settings on the official pages and, where your circumstances are complicated, get advice from a suitably qualified professional.

What do I need to set up in the first weeks for the budget to work?

A bank account comes first, because government benefit schemes and nearly all jobs deposit money straight into a bank account rather than paying cash or cheque. Open one within six weeks of arrival: within that window your passport is the only identification document you need. After six weeks you will need at least two identification items, and one of them — a driver's licence, for example — must show a photograph or signature.

Australia has four "big banks" alongside a range of locally and foreign owned banks, building societies and credit unions, and the Australian Prudential Regulation Authority (APRA) maintains a list of all authorised deposit-taking institutions. Read the terms and conditions before opening anything: many institutions charge operating fees, and account features differ. Nearly all businesses accept cash, cheques, debit and credit cards and electronic funds transfer, and electronic payments have the side benefit of leaving a record you can reconcile against your budget.

How does tax change what I can actually spend?

Tax is levied on income, on the purchase of goods and services and on running a business, and the Australian Taxation Office (ATO) administers it. Register for a tax file number (TFN) shortly after arriving: you need one to claim government benefits, to receive income from an employer and to be eligible for a tertiary education loan, among other things. Applying online is the fastest route and runs 24 hours a day, seven days a week; you will need your passport details and an Australian address. Paper application forms are available from the ATO Publication Ordering Service or by phoning the tax file number helpline on 13 28 61, and you should receive your TFN by mail within 28 days from the day the ATO receives your application.

Give your TFN to an employer when you start a job, but be careful who else you give it to, as only certain organisations can legally request it. The practical budgeting point is that tax is a recurring claim on income rather than a once-a-year event, so it belongs in the budget as a line item.

If you earn income, you must lodge an income tax return — a declaration of income for the financial year that determines whether you have paid the required amount of tax. You need a TFN to lodge, and your employer will give you a summary of payments called a Group Certificate. Lodging online through the ATO is free, convenient and secure, and it prefills parts of the return using information from your employer, banks, health funds and government agencies; it requires a myGov account. Returns must reach the ATO by 31 October each year unless you use a registered tax agent, and tax agents charge a fee — generally worth considering only where your deductions and offsets are complicated.

What if the budget does not balance?

Free help exists before paid help does. The MoneySmart "Managing my money" page has information, factsheets and videos on money management, and its borrowing and credit material covers the responsibilities that come with credit cards and loans; some MoneySmart publications are available in several community languages. Services Australia also runs the Financial Information Service, a free and confidential program.

Paid financial advisors and planners sit at a different point on the scale: they charge a fee and advise on investments, the purchase of property and other long-term financial matters. Building a first budget is not that kind of problem — the free channels cover it — but once the question becomes a mortgage or an investment, the paid route is the one designed for it.

Frequently Asked Questions

Does the Australian Government publish an official cost-of-living figure for new migrants?

No. The Department of Home Affairs settling-in guidance describes living costs qualitatively and names food, transport, housing and utilities as the recurring categories instead. The recommended approach is to learn the rough cost of your own essential items and plan spending with a budget.

What are the main expenses I should budget for after arriving?

Food, transport, housing and utilities are the four named in official settling-in guidance as items you pay for consistently. Bank account operating fees, credit or loan repayments and income tax are recurring claims on the same money and belong in the same budget.

How soon do I need to open an Australian bank account?

Within six weeks of arrival, while your passport is the only identification document required. After six weeks you will need at least two identification items, one of which must show a photograph or signature.

Do I need a Tax File Number as a new permanent resident?

You need one to claim government benefits, receive income from an employer and be eligible for a tertiary education loan, so registering shortly after arrival is the standard step. Applying online needs your passport details and an Australian address, and the TFN arrives by mail within 28 days of the ATO receiving the application.

When is my first Australian tax return due?

Tax returns must be completed and sent to the ATO by 31 October each year unless you use a registered tax agent. Online lodgment through the ATO is free and needs a myGov account and a TFN.

Where can I get free help if my budget does not add up?

MoneySmart's "Managing my money" page offers free information, factsheets and videos on money management, with some publications in community languages. Services Australia's Financial Information Service is a free and confidential program for the same purpose.