Australia and New Zealand share a great deal — close cultural ties, stunning natural environments, and similar standards of living. Yet for those considering relocating, working, or studying across the Tasman, one question often arises: which country is more affordable to live in? While both nations offer strong economies and enviable lifestyles, their costs of living differ significantly depending on factors like housing, wages, and consumer goods.

1. Housing and Accommodation Costs

Housing is often the largest expense for residents in both countries. In recent years, Australia’s property market has surged, particularly in Sydney, Melbourne, and Brisbane, where median house prices now exceed AUD 1 million in many suburbs. Rents have also climbed sharply, with typical weekly rents in Sydney sitting around AUD 750 for a house and AUD 650 for an apartment.

New Zealand, however, is not far behind. Auckland and Wellington have also experienced steep housing inflation. Median house prices in Auckland hover near NZD 1 million (about AUD 920,000), and rental prices average around NZD 650 per week for apartments. While regional towns like Dunedin or Palmerston North are cheaper, the overall affordability challenge is comparable to that in Australian capitals.

In short: Australian housing is generally more expensive in big cities, but New Zealand’s smaller towns can offer better value.

2. Wages and Incomes

A key difference between the two countries lies in income levels. Australia’s minimum wage — currently around AUD 24.10 per hour (as of 2025) — is among the highest in the world. In comparison, New Zealand’s minimum wage stands at NZD 23.15 per hour (roughly AUD 21.40).

Average full-time salaries also tend to be higher in Australia, reflecting both stronger economic diversity and higher living expenses. For example:

• Australia: Average annual full-time salary ≈ AUD 98,000

• New Zealand: Average annual full-time salary ≈ NZD 75,000 (≈ AUD 69,000)

This means that while Australians typically pay more for essentials, they also earn more on average — helping offset the higher cost of living.

3. Groceries and Everyday Essentials

In general, grocery prices in New Zealand tend to be slightly higher than in Australia. Several factors contribute to this — notably smaller market competition, higher import costs, and limited domestic production scale.

For instance:

• 1 litre of milk: AUD 1.90 in Australia vs NZD 3.00 (≈ AUD 2.70) in New Zealand

• Loaf of bread: AUD 3.00 vs NZD 3.50 (≈ AUD 3.20)

• Dozen eggs: AUD 5.50 vs NZD 7.00 (≈ AUD 6.40)

Dining out is also more affordable in Australia overall, with a casual restaurant meal averaging AUD 25, compared to NZD 30 (≈ AUD 27) in New Zealand.

Conclusion: groceries and dining are cheaper in Australia, especially in major cities where competition between retailers like Coles, Woolworths, and Aldi keeps prices competitive.

4. Transport and Fuel

Fuel prices fluctuate, but historically, New Zealanders pay slightly more per litre of petrol due to higher taxes and logistics costs. As of late 2025, the average petrol price is around AUD 2.20 per litre in Australia versus NZD 2.85 (≈ AUD 2.55) in New Zealand.

Public transport is cheaper in New Zealand’s smaller cities, but Australian urban centres have more extensive networks — albeit at a higher cost. Owning a car is common in both countries, though road tolls are more prevalent in Australia (particularly around Sydney and Melbourne).

5. Utilities and Internet

Electricity, gas, and water utilities are another major expense. On average:

• Australia: AUD 200–250 per month for utilities

• New Zealand: NZD 220–270 per month (≈ AUD 200–240)

Internet costs are similar, though New Zealand’s rural areas can experience slower connectivity and higher prices. Urban broadband in both countries costs roughly AUD/NZD 80–100 per month.

6. Healthcare and Insurance

Both nations operate mixed public-private healthcare systems, offering residents government-supported medical care. Australia’s Medicare system covers most essential services at little or no cost, whereas New Zealand’s public health system also provides free or subsidized care but can involve longer wait times for elective procedures.

Private health insurance is optional but common in both countries. Premiums in New Zealand are slightly lower, though the scope of cover can be narrower.

Overall, healthcare access and quality are similar, but Australia’s system offers broader options for specialized treatment through private providers.

7. Education and Childcare

Education costs are a significant consideration for families. Both countries provide free public education, but childcare and university fees differ.

In Australia, childcare costs average AUD 130–160 per day, though government subsidies can reduce out-of-pocket expenses substantially. In New Zealand, fees average NZD 100–130 (≈ AUD 90–120) per day, and the government offers 20 hours of free early childhood education for children aged 3–5.

University fees are similar on paper but vary depending on domestic versus international student status. Australian universities are often ranked higher globally, which may justify slightly higher tuition fees.

8. Lifestyle and Leisure Costs

When it comes to lifestyle expenses — from entertainment and fitness to travel — Australia and New Zealand are roughly comparable. Australians tend to spend more on dining and travel, while New Zealanders spend more on outdoor activities and domestic tourism due to proximity to nature.

A gym membership costs around AUD 75 per month in both countries, and cinema tickets range between AUD/NZD 20–25. Alcohol and tobacco, however, are notably more expensive in New Zealand due to higher excise taxes.

9. Summary: Which Country Is More Affordable?