The cost of living varies significantly across Australian states and territories, influenced by differences in housing costs, energy prices, food and grocery costs, transport expenses, and the availability of goods and services. New South Wales and Victoria typically record higher overall costs due to elevated property prices in Sydney and Melbourne.
Housing costs — whether rent or mortgage repayments — are the largest driver of cost of living differences between states. Sydney consistently ranks as the most expensive Australian city for housing, with Melbourne, Brisbane, and Perth all more affordable in relative terms despite recent price increases.
Beyond housing, energy costs, grocery prices, and transport costs also vary between states due to differences in regulatory frameworks, infrastructure investment, and geographic factors. Remote and regional areas within each state typically face higher costs for many goods due to transport and supply chain costs.
Australians considering interstate relocation often weigh cost of living differences against income opportunities, lifestyle preferences, and proximity to family. The shift to remote working arrangements has enabled more Australians to move to lower-cost states while maintaining employment with city-based organisations.
Data sourced from ABS Monthly Household Spending Indicator state-level data across all spending categories. Cost indices constructed from weighted average of key spending categories. Updated quarterly.