Cost of living by state
2026 cost of living index (couple, monthly, excluding mortgage):
1. NSW Sydney
- $5,800/month for couple
- Rent (house): $735/wk; unit: $620/wk
- Transport: $300/month for public + $400 fuel/car
- Groceries: $300/wk for couple
- Eating out + entertainment: $800/month
- Utilities (gas, electricity, water): $450/month
- Median home price: $1.6M house, $850K unit
2. VIC Melbourne
- $5,300/month for couple
- Rent (house): $580/wk; unit: $500/wk
- Transport: $250/month + $350 fuel
- Groceries: $280/wk
- Entertainment: $700/month
- Utilities: $400/month
- Median home: $1M house, $580K unit
3. WA Perth
- $5,000/month for couple
- Rent (house): $560/wk; unit: $500/wk
- Transport: $200/month + $400 fuel (longer distances)
- Groceries: $300/wk (higher in remote WA)
- Entertainment: $650/month
- Utilities: $380/month
- Median home: $720K house, $410K unit
- Mining boom + high wages
4. QLD Brisbane
- $4,800/month for couple
- Rent (house): $560/wk; unit: $480/wk
- Transport: $200/month + $350 fuel
- Groceries: $260/wk
- Entertainment: $600/month
- Utilities: $400/month
- Median home: $850K house, $560K unit
- Sunny climate + growing economy
5. ACT Canberra
- $5,000/month for couple
- Rent (house): $625/wk; unit: $530/wk
- Transport: $150/month (smaller city) + $300 fuel
- Groceries: $260/wk
- Entertainment: $650/month
- Utilities: $380/month
- Median home: $850K house, $530K unit
- High income (government workers) offsets cost
Cost ranks 6-10
6. NSW Newcastle (Sydney alternative)
- $5,200/month
- Rent: $580/wk house
- 1 hour train to Sydney CBD
- Growing tech + service sector
7. QLD Gold Coast
- $5,100/month
- Rent: $620/wk
- Tourism + lifestyle
- Property up 7-12% recent years
8. NT Darwin
- $5,000/month
- Rent (house): $600/wk
- High-paying mining + defense jobs
- Remote + tropical lifestyle
9. SA Adelaide
- $4,400/month
- Rent (house): $500/wk; unit: $400/wk
- Most affordable mainland capital
- Smaller employment market than east coast
10. TAS Hobart
- $4,200/month (most affordable major capital)
- Rent (house): $480/wk; unit: $410/wk
- Limited employment opportunities
- Growing tourism + retiree migration
WITHIN-STATE COMPARISON:
| Sydney metro | Melbourne metro | For couples earning $150K combined |
|---|---|---|
| Northern Beaches: $6,500/month, premium | South Yarra/Toorak: $6,500, premium | Sydney: 38% of net income on housing |
| Lower North Shore: $6,800, very expensive | Inner Melbourne (CBD): $5,800 | Melbourne: 35% |
| Inner West: $5,800, mid-tier | Eastern Suburbs (Camberwell, Glen Iris): $5,200 | Brisbane: 30% |
| Western Sydney: $4,800-$5,400, growing | Northern Suburbs (Coburg, Brunswick): $4,800 | Hobart: 25% |
| Hawkesbury/Outer Sydney: $4,500-$5,000 | Western Suburbs (Footscray, Werribee): $4,400 | Adelaide: 27% |
Percentage matters: lower COL allows more saving, faster paying off mortgage, more discretionary income.
| State / City | Monthly couple | Median rent | Median home |
|---|---|---|---|
| NSW Sydney | $5,800 | $735/wk | $1.6M |
| VIC Melbourne | $5,300 | $580/wk | $1.0M |
| WA Perth | $5,000 | $560/wk | $720K |
| QLD Brisbane | $4,800 | $560/wk | $850K |
| ACT Canberra | $5,000 | $625/wk | $850K |
| SA Adelaide | $4,400 | $500/wk | $750K |
| NSW Newcastle | $5,200 | $580/wk | $900K |
| QLD Gold Coast | $5,100 | $620/wk | $950K |
| NT Darwin | $5,000 | $600/wk | $600K |
| TAS Hobart | $4,200 | $480/wk | $700K |
Worked moving example
Family of 4 moving from Sydney to Brisbane:
| In Sydney | In Brisbane |
|---|---|
| Mortgage on $1.5M home: $7,500/month | Buy similar $900K home (vs $1.5M Sydney): mortgage $4,500/month |
| Rent for similar (if not buying): $735/wk = $3,200/month | OR rent for $560/wk = $2,400/month |
| Total housing: $7,500 OR $3,200 | Transport: $650/month |
| Transport: $700/month (commute + family) | Groceries + lifestyle: $1,000/month (slightly cheaper) |
| Groceries + lifestyle: $1,200/month | Utilities + insurance: $450/month |
| Utilities + insurance: $500/month | Total monthly cost (rent): $4,500 |
| Total monthly cost (if renting): $5,600 | Total monthly cost (mortgage $900K): $6,600 |
| Total monthly cost (if mortgaging $1.5M): $9,900 |
Net savings (rent scenario): $1,100/month = $13,200/year
Net savings (mortgage scenario): $3,300/month = $39,600/year
Plus quality of life differences (subjective)
- Brisbane: shorter commute, more outdoor lifestyle, slower pace
- Sydney: more opportunity, denser social fabric, premium dining
For 5-year stay in Brisbane: $200K+ saved (rent) or $600K+ saved (mortgage) vs Sydney.
This is the largest non-tax cost-of-living lever for Australian families.
Income tax + payroll tax + state factors
Income tax is FEDERAL only in Australia - same regardless of state.
What does vary by state:
1. Payroll tax (employer pays, sometimes passed through)
- NSW: 5.45% on payroll above $1.3M
- VIC: 4.85% on payroll above $700K
- QLD: 4.95% on payroll above $1.3M
- WA: 5.50% on payroll above $1M
- SA: 4.95% on payroll above $1.5M
- ACT: 6.85% on payroll above $2M
- TAS: 6.10% on payroll above $1.25M
- NT: 5.50% on payroll above $2.5M
Does not directly affect employee but can indirectly via lower wages in higher payroll-tax states.
2. Land tax (annual)
- NSW: 1.6% on land value over $1.075M
- VIC: 1.65% on land value over $300K
- QLD: 1% on land value over $600K
- WA: 0.4-2.67% sliding scale
- SA: 0.5-2.4%
- ACT: 1.25% on entire land value
- TAS: 1.5% on land over $50K
- Stamp duty: see separate state guide. NSW = $73K on $1.6M; VIC = $99K.
- State payroll tax: NSW lower than VIC.
- Health insurance (Medicare Levy Surcharge): federal, applies all states.
Non-tax cost factors
- Transport: Sydney + Melbourne have most extensive public transport
- Education: state schools vary by region
- Healthcare: public hospital wait times differ by state
- Climate: WA dry, QLD warm + humid, VIC cold winter, NSW mild, TAS cool
- Internet: regional areas slower NBN
For most Australian workers, the dominant cost differentials are:
1. Housing (rent or mortgage)
2. Transport (urban vs sub-urban)
3. Discretionary spending (less variation than housing)
Strategic moves + considerations
When considering moving Australian states:
| Financial | Lifestyle | Family | Remote work | Housing market timing | Visa + residency |
|---|---|---|---|---|---|
| Stamp duty: NSW/VIC/QLD highest; ACT lowest | Climate: Sydney mild, Brisbane warm, Melbourne cold winters, Hobart cool | Schools: many high-quality schools in all states | Internet: NBN coverage 100%+ in major cities | Sydney + Melbourne markets cooled 2024; mild recovery 2025-26 | All states equivalent for Australian citizens / permanent residents |
| Land tax: ACT highest (every property); NSW/VIC/QLD only on investment | Outdoor: WA, QLD, NSW have beaches; Tasmania pristine wilderness | Family-friendly: Brisbane + Adelaide rated highly for families | Time zone: WA is 2 hours behind east coast | Brisbane + Adelaide property up significantly | Foreign buyers: 8% surcharge in NSW/VIC/QLD/TAS; lower elsewhere |
| Property price: NSW/VIC highest; Tasmania/SA lowest | Cuisine: Melbourne best food scene; Sydney close second | Healthcare: NSW/VIC have major teaching hospitals | Lifestyle communities: Sunshine Coast, Newcastle, Geelong popular | Hobart up modestly | |
| Employment opportunities: NSW/VIC highest; Tasmania/NT smallest | Sport: all major cities have AFL, NRL, A-League teams | WA recovering from mining bust |
Worked example: senior software engineer choice
- Sydney: $180K salary, $5,800/month COL, $1.5M home
- Brisbane: $170K salary, $4,800/month COL, $900K home
- Hobart: $145K salary, $4,200/month COL, $700K home
Net after-tax + COL annual surplus
- Sydney: $80K
- Brisbane: $76K
- Hobart: $73K
Despite salary cuts, the cost-of-living advantage shrinks the gap. Brisbane comes close to Sydney; Hobart trade-off is significant.
Run the math for your situation
Use our 🇦🇺 Australia calculator to plug in your own numbers.