Choosing between living in Australia vs New Zealand is one of the most common dilemmas for international students and migrants planning their future abroad. Both nations are well-known for their high standard of living, world-class education, and welcoming societies. Yet, when it comes to daily expenses, rent, groceries, transport, and student fees, there’s a noticeable difference.
In 2025, global inflation, rising rental prices, and post-pandemic economic adjustments have changed the financial landscape in both countries. Understanding how much it actually costs to live, study, and work is essential before deciding where to move.
This comprehensive comparison examines every aspect of the cost of living in Australia vs New Zealand, including rent, food, healthcare, transportation, and student expenses, so you can make a well-informed decision before taking your next big step.
Methodology: How We Compared the Costs
To ensure accuracy and reliability, data have been compiled from reputable sources such as Numbeo, Australian Bureau of Statistics (ABS), New Zealand Stats NZ, and verified housing reports up to October 2025.
All costs are presented in USD equivalents and represent average prices in major cities, including Sydney, Melbourne, Brisbane, Auckland, Wellington, and Christchurch.
For students, figures related to tuition, accommodation, and living expenses have been derived from university reports and official education websites. These insights provide a practical overview of the real experience of living in Australia vs New Zealand as a student, worker, or family.
Cost-of-Living Overview 2025: Australia vs New Zealand
General Living Index
According to recent cost-of-living reports:
- Australia’s average cost-of-living index in 2025: 82.7
- New Zealand’s average cost-of-living index: 73.5
That means, on average, living in Australia is about 12% more expensive than living in New Zealand. However, Australians generally earn higher wages, balancing the difference in expenses.
| Category | Australia (Avg Monthly Cost) | New Zealand (Avg Monthly Cost) |
| Rent (1BR City Centre) | $1,950 | $1,450 |
| Groceries | $420 | $370 |
| Utilities | $190 | $160 |
| Transportation | $130 | $110 |
| Internet | $70 | $65 |
| Average Net Salary | $5,000 | $4,200 |
Verdict: Australia is costlier overall, but higher income potential compensates for it.
Housing and Rent: The Biggest Expense
Housing is the most significant component of living in Australia vs New Zealand.
Australia
In major cities like Sydney and Melbourne, rent prices have surged in 2025 due to strong demand and limited housing supply.
- Sydney: $2,300/month for a one-bedroom apartment in the city centre
- Melbourne: $1,950/month
- Brisbane: $1,700/month
Shared apartments or student accommodations may range between $800–$1,200 per month, depending on proximity to universities.
New Zealand
New Zealand remains more affordable in housing, though Auckland and Wellington are seeing rising rents.
- Auckland: $1,750/month for a one-bedroom in the city
- Wellington: $1,500/month
- Christchurch: $1,200/month
Shared student accommodations cost around $700–$950/month.
Key takeaway:
If saving on rent is your top priority, New Zealand offers a more budget-friendly environment. However, Australia’s urban housing tends to provide better amenities and infrastructure.
Groceries and Daily Essentials
Grocery prices form the next largest expense in both countries.
| Item | Australia (Avg Price) | New Zealand (Avg Price) |
| 1 litre of milk | $1.60 | $1.80 |
| Bread (500g) | $2.40 | $2.10 |
| Eggs (dozen) | $4.10 | $3.80 |
| Chicken (1kg) | $9.80 | $10.50 |
| Rice (1kg) | $2.50 | $2.70 |
| Apples (1kg) | $3.00 | $2.90 |
| Restaurant meal (mid-range) | $22 | $18 |
Observation:
Groceries are roughly 5-8% cheaper in Australia, but eating out is more expensive. New Zealand’s smaller population and import costs make certain goods pricier, especially in remote areas.
Transportation and Commuting
Australia
Public transport systems in Sydney, Melbourne, and Brisbane are efficient and modern.
- Monthly pass: around $150–$170
- Petrol: around $1.75/litre
- Ride-share (Uber/Taxi): average $3.20/km
New Zealand
Cities like Wellington and Auckland have smaller yet effective transport networks.
- Monthly pass: $130–$150
- Petrol: $1.90/litre
- Ride-share: $2.80/km
Verdict: Transport costs are relatively similar, but New Zealand is slightly cheaper for public commuting.
Healthcare and Insurance
Both countries have robust healthcare systems, but eligibility and costs differ.
Australia
- Residents benefit from Medicare, which covers essential healthcare at a low cost.
- International students are required to purchase Overseas Student Health Cover (OSHC).
- Average OSHC cost: $500–$650/year.
New Zealand
- Public healthcare is subsidized, but international students need private insurance.
- Student health insurance costs around $350–$500/year.
Comparison: New Zealand offers slightly cheaper health insurance, but Australia’s medical infrastructure and facilities are more extensive.
Education Costs and Student Expenses
Education is one of the most important parts of living in Australia vs New Zealand, especially for international students.
Australia
- Bachelor’s programs: $20,000–$45,000 per year
- Master’s programs: $25,000–$50,000 per year
- Vocational training (TAFE): $10,000–$20,000 per year
- Average living expenses for students: $1,400–$2,000/month
Australia is a global education hub with top universities like the University of Melbourne, ANU, and the University of Sydney. The cost of living in Australia for an international student is relatively high but balanced by generous part-time work opportunities.
New Zealand
- Bachelor’s programs: $18,000–$35,000 per year
- Master’s programs: $22,000–$40,000 per year
- Vocational/diploma: $8,000–$18,000 per year
- Average living expenses: $1,200–$1,600/month
Verdict: Tuition in New Zealand is marginally lower, and the environment is quieter, ideal for students seeking affordable, quality education.
Employment and Wages
Australia
- Average full-time salary: $92,000/year
- Minimum wage (2025): $24.10/hour
- Students can work 48 hours per fortnight.
New Zealand
- Average full-time salary: $74,000/year
- Minimum wage (2025): $23.15/hour
- Students can work 20 hours per week.
Insight:
While living costs are higher in Australia, the stronger economy and higher wages balance the expenses. New Zealand offers a slower-paced, less competitive work environment.
Utilities and Internet
| Category | Australia | New Zealand |
| Electricity, Water, Gas (monthly) | $180–$220 | $150–$190 |
| Internet (Unlimited) | $70–$90 | $65–$80 |
| Mobile Plan (Prepaid 10GB) | $30–$40 | $25–$35 |
Observation: Utilities are slightly cheaper in New Zealand, but internet speeds and infrastructure are better in Australia.
Student Lifestyle: Cost Breakdown (Per Month)
| Expense Category | Australia | New Zealand |
| Rent (Shared Accommodation) | $900 | $750 |
| Food & Groceries | $400 | $350 |
| Transportation | $140 | $120 |
| Internet & Phone | $80 | $70 |
| Miscellaneous | $150 | $130 |
| Total Monthly Cost | $1,670 | $1,420 |
For most international students, living in New Zealand can save around $250–$300/month, which adds up to $3,000+ per year.
However, students often choose Australia due to:
- Higher post-study work visa duration
- Better job availability
- Larger international communities
This balance makes the cost of living in Australia for international students more acceptable in exchange for better career outcomes.
Lifestyle and Quality of Life
Beyond numbers, living in Australia vs New Zealand also involves lifestyle differences:
| Aspect | Australia | New Zealand |
| Climate | Hotter summers, mild winters | Cooler and windier |
| Population Density | Higher (urbanized) | Lower (rural balance) |
| Public Transport | Advanced & frequent | Moderate & regional |
| Safety | High | Very high |
| Leisure | Beaches, nightlife, festivals | Nature, hiking, serenity |
Both countries rank high in global quality-of-life indexes, with New Zealand being more relaxed and community-focused, while Australia offers a faster pace and more opportunities.
Scholarships and Study Opportunities
Students seeking affordable education abroad should explore studying abroad with full scholarships available in both nations.
Australia
- Australia Awards Scholarships
- Destination Australia Program
- Research Training Program (RTP)
- University-specific merit scholarships
New Zealand
- New Zealand Excellence Awards
- Manaaki New Zealand Scholarships
- University of Auckland International Student Excellence Scholarship
Applying early improves chances significantly. For financially conscious students, securing these scholarships can offset tuition and even living expenses, making living in Australia vs New Zealand financially feasible.
Sample Monthly Budgets (2025)
| Profile | Australia (USD) | New Zealand (USD) |
| Student (shared flat) | $1,650 | $1,400 |
| Working professional | $2,500 | $2,100 |
| Couple with child | $3,800 | $3,300 |
| Family (2 kids) | $5,000 | $4,400 |
Budget differences arise mainly due to rent and transport, while food and utilities remain close across both nations.
Long-Term Considerations (Migration, Housing, and Tax)
Housing Market
- Australia’s housing prices continue to rise, especially in Sydney and Melbourne.
- New Zealand’s property market saw corrections post-2023, stabilizing rent.
Taxes
- Both have progressive taxation, but income tax in Australia is higher for higher earners.
- New Zealand has no capital gains tax on most properties.
Permanent Residency and Opportunities
- Australia offers multiple PR pathways through skilled migration.
- New Zealand’s PR system is slightly faster but with limited slots.
These factors shape the total financial impact of living in Australia vs New Zealand beyond daily expenses.
Cost-Saving Tips for Students and New Migrants
- Use student discounts on transport and shopping.
- Choose regional cities — lower rent and more job opportunities.
- Cook at home instead of frequent dining out.
- Share accommodation with peers.
- Apply for scholarships early to offset tuition.
- Track expenses monthly to manage budgeting.
- Leverage part-time work opportunities wisely.
- Use public transport cards for weekly savings.
Following these strategies can make your cost of living in Australia for international student or New Zealand much more manageable.
FAQs
Q1. Which country is cheaper to live in, Australia or New Zealand?
New Zealand is generally cheaper for rent and groceries, but Australia offers higher salaries, balancing total living costs.
Q2. Is the cost of living in Australia for an international student too high?
It’s higher than in New Zealand, but part-time work and scholarships make it affordable.
Q3. Where can I save more on housing?
Smaller cities in New Zealand and regional towns in Australia have the lowest rents.
Q4. Can I study abroad with full scholarships in these countries?
Yes. Both nations offer fully funded scholarships for eligible students across different disciplines.
Q5. Which has better job opportunities for graduates?
Australia’s larger economy offers more job diversity, especially in technology, healthcare, and education.
The cost of living in Australia vs New Zealand will continue to evolve, influenced by housing trends, inflation, and government policies. Whether you’re a student comparing the cost of living in Australia for an international student or a professional planning to migrate, make sure to assess every detail, from rent and insurance to taxes and job prospects.
For aspiring scholars, exploring options to study in abroad with full scholarships can significantly lighten the financial burden while experiencing world-class education in either nation.
Both Australia and New Zealand promise rewarding experiences, financially, academically, and personally. The right choice isn’t just about cost, it’s about opportunity, adaptability, and the lifestyle you dream of living abroad.