Expensive Australia Infographic


Contact for Quote

Expensive Australia Infographic

Expensive Australia Infographic

In the most recent Worldwide Cost of Living Survey, Sydney and Melbourne have both ranked as two of the most expensive places to live out of the 131 cities surveyed1.

Australians face high property price tags and growing concerns over the costs of health care, education and a wide range of consumer products. Despite this, the cost of living in Australia isn't all doom and gloom. In fact, taking into consideration the high standard of living that Australians enjoy, there are some positives, comparatively at least. Take a quick look at how Australia compares to the rest of the world in terms of GDP, airfares, education, healthcare and much more.

Is Australia really that expensive?

Determining how expensive goods and services in one country are compared to another is measured through the Price Level Index, sometimes abbreviated as PLI2. The PLI measures overall price levels in a given country relative to another country, which is given a PLI of 100 as a base. Generally, the USA is used as the base country and countries with a PLI over 100 are comparatively more expensive, while a PLI under 100 indicates that a country is comparatively less expensive than the USA2.

The most recent World Bank data from 2011, released earlier this year, shows that Australia has a PLI of 155.93, up 47 per cent from the previous World Bank report in 20054.

The top 10 most expensive countries, compared to the USA3,5

^ 2005 data not available for Bermuda

How expensive is Australia compared to the rest of the world?

Gross Domestic Product (GDP) measures the value of a country's production in terms of the value of goods and services during a given year5. The graph below shows PLI (x-axis), GDP (y-axis) and population (bubble size) in 2011 and 2005.

PLI vs GDP per capita and population for the 10 most expensive countries.

2005 data not available for Bermuda

It costs what, where?

How do the prices of some of the most common, everyday items Australians use compare to countries around the world? Click through the tabs below to see how Australian prices for a loaf of bread, a beer, a cappuccino, a pair of jeans, a dozen eggs and public transport stack up.

Average price of common goods around the world (US$)

It might be surprising to know that both Sydney and Melbourne are more expensive than New York City23. See how these two Australian cities compare to the Big Apple.

Sydney, Melbourne, New York: Selected goods and services 2013

Education costs in Australia

“When I get a little money, I buy books; and if any is left I buy food and clothes.”
- Desiderius Erasmus, 15th century European scholar

In metropolitan areas, parents with children starting preschool in 2018 can expect to pay an estimated AU$63,251 from preschool through to year 12 for a public education, not including child care or university fees24. Click through the graphics below to see how the cost of education is spread among primary, high school, university and child care fees.

1,257,722 students were enrolled in university studies in 201225. Together, universities across Australia employed 123,827 staff in 201326. They play a crucial role in supporting the economy and undertaking valuable research that can benefit the entire country.

International students

Australia has the highest cost of education for international students per year (US$38,516 in fees and cost of living) while Germany has the lowest (US$6,285 in fees and cost of living)27.

Commonwealth supported places

Australian citizens have access to government subsidised tertiary education, but students still have to contribute a portion of the total fee and the amount depends upon the field of study. Currently, a university student working towards a degree in medicine can pay up to AU$10,085 per annum in tuition costs28.

Operating revenues

HEPs in Australia had combined total operating revenue of AU$25.1 billion in 2012, 44 per cent of which came from Australian Government Grants29 .

Is the cost of living in Australia too high?

A recent survey conducted by CHOICE, shows that one in three Australians are finding it difficult to get by, with low-income earners, renters and parents with school aged children struggling the most33. So why are so many Australians barely getting by? The cost of housing, taxes on imported goods and price discrimination are just some of the factors contributing to the high cost of living.

In Australia, the best things in life are cheap

There are plenty of everyday items with a smaller price tag than you would find elsewhere; domestic airfares, healthcare, hotel rooms and petrol prices are just the tip of the iceberg.

Australia ranks fourth cheapest in the world for airfares, at just US$12.20/100km.

Domestic air fares

Low cost airfare isn't hard to come by, with Jetstar, Virgin and Tiger Airways all competing for a slice of the domestic airfare pie, consumers are the ones who win in the end. Australia ranks fourth cheapest in the world for airfares, at just US$12.20/100km compared to Finland (which is the most expensive) at US$138.90/100km41.

References

1 The ABC March 2014, World's costliest cities: Sydney and Melbourne ranked in top 10 by Economist Magazine, viewed 16 September 2014, http://www.abc.net.au/news/2014-03-05/sydney-and-melbourne-among-worlds-most-expensive-cities/5298818

2 European Commission June 2013, Glossary: Price level index (PLI), viewed 16 September 2014, http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Glossary:Price_level_index_(PLI)

3 The World Bank 2014, Purchasing power parities and real expenditures of world economies summary of results and findings of the 2011 international comparison program, pg. 86, viewed on 10 September 2014, http://siteresources.worldbank.org/ICPINT/Resources/270056-1183395201801/Summary-of-Results-and-Findings-of-the-2011-International-Comparison-Program.pdf

4 The World Bank 2008, Global purchasing power parities and real expenditures 2005 international comparison program, pg. 23, viewed on 10 September 2014, http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1337016259587/2005ICPReport_FinalwithNewAppG.pdf

5 The World Bank 2014, Glossary, viewed on 20 October 2014, http://www.worldbank.org/depweb/english/beyond/global/glossary.html

6 The World Bank 2014, GDP per capita (current US$), viewed on 11 September 2014, http://data.worldbank.org/indicator/NY.GDP.PCAP.CD

7 Trading Economics 2014, Japan population, viewed on 11 September 2014, http://www.tradingeconomics.com/japan/population

8 Trading Economics 2014, Finland population, viewed on 11 September 2014, http://www.tradingeconomics.com/finland/population

9 Trading Economics 2014, Canada population, viewed on 11 September 2014, http://www.tradingeconomics.com/canada/population

10 Trading Economics 2014, Sweden population, viewed on 11 September 2014, http://www.tradingeconomics.com/sweden/population

11 Trading Economics 2014, Denmark population, viewed on 11 September 2014, http://www.tradingeconomics.com/denmark/population

12 Trading Economics 2014, Australia population, viewed 11 September 2014, http://www.tradingeconomics.com/australia/population

13 Trading Economics 2014, Switzerland Population, viewed on 11 September 2014, http://www.tradingeconomics.com/switzerland/population

14 Department of Statistics 2012, 2011 Bermuda digest of statistics, Government of Bermuda, pg. 2, viewed 11 September 2014, http://www.govsubportal.com/images/Cabinet_Office/Dept_of_Statistics/Docs/Social%20Other%20Publications/2011%20Digest%20of%20Statistics%20-%20Tables%201.1-1.5.pdf

15 Trading Economics 2014, Norway Population, viewed on 11 September 2014, http://www.tradingeconomics.com/norway/population

16 Trading Economics 2014, Luxembourg population, viewed on 11 September 2014, http://www.tradingeconomics.com/luxembourg/population

17 The World Bank 2014, GDP per capita (current US$), viewed on 11 September 2014, http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?page=1

18 Numbeo 2014, Prices by country, viewed 4 September 2014, http://www.numbeo.com/cost-of-living/prices_by_country.jsp?displayCurrency=USD&itemId=9

19 Numbeo 2014, Prices by country, viewed 4 September 2014, http://www.numbeo.com/cost-of-living/prices_by_country.jsp?displayCurrency=USD&temId=15

20 Numbeo 2014, Prices by country, viewed 4 September 2014, http://www.numbeo.com/cost-of-living/prices_by_country.jsp?displayCurrency=USD&itemId=114

21 Numbeo 2014, Prices by country, viewed 4 September 2014, http://www.numbeo.com/cost-of-living/prices_by_country.jsp?displayCurrency=USD&itemId=60

22 Numbeo 2014, Prices by country, viewed 4 September 2014, http://www.numbeo.com/cost-of-living/prices_by_country.jsp?displayCurrency=USD&itemId=11

23 Deutsche Bank Markets Research, The Random Walk, mapping the world's prices 2013, viewed 17 October 2014, http://cbs.db.com/new/pdf/Random_Walk_Mapping_Prices_2013.pdf

24 Australian Scholarships Group 2014, How much will you pay for your child's schooling?, viewed on 16 September 2014, http://www.asg.com.au/assets/files/asg_edcosts_childborn_2014_nat_metro.pdf

25 Universities Australia 2014, Data snapshot 2014, pg.8, viewed on 11 September 2014, https://www.universitiesaustralia.edu.au/ArticleDocuments/169/Data%20snapshot%202014.pdf.aspx

26 Universities Australia 2014, Data snapshot 2014, pg.7, viewed on 11 September 2014, https://www.universitiesaustralia.edu.au/ArticleDocuments/169/Data%20snapshot%202014.pdf.aspx

27 HSBC August 2013, Australia most expensive country for international study, but the tide may turn, viewed on 12 September 2014, http://www.hsbc.com.au/1/2/about/news/13/130813

28 Study Assist, Australian Government 2014, Student contribution amounts, viewed on 11 September 2014, http://studyassist.gov.au/sites/studyassist/helppayingmyfees/csps/pages/student-contribution-amounts#2014

29 Universities Australia 2014, Data snapshot 2014, pg.10, viewed on 11 September 2014, https://www.universitiesaustralia.edu.au/ArticleDocuments/169/Data%20snapshot%202014.pdf.aspx

30 Working in Australia 2014, Education in Australia: an overview, viewed on 11 September 2014, http://www.workingin-australia.com/education/system/overview#.VBFF2cKSzh4

31 Elliott, R, 'Cost of child care', careforkids.com.au, viewed on 16 September 2014, http://www.careforkids.com.au/articlesv2/article.asp?ID=77

32 Australian Bureau of Statistics 2012, Childhood education and care, Australia, June 2011, 4402.0, ABS, Canberra, viewed 16 September, http://www.abs.gov.au/ausstats/abs@.nsf/Products/4402.0~June+2011~Main+Features~Main+features?OpenDocument

33 CHOICE 2014, Consumer pulse cost of living report, pg.3, viewed on 16 September 2014, https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CDgQFjAB&url=http%3A%2F%2Fwww.choice.com.au%2F~%2Fmedia%2FFiles%2FNews%2FCHOICE%2520CP%2520Cost%2520of%2520Living%2520report.ashx&ei=c8QXVJSSKtaF8gW8w4G4Bg&usg=AFQjCNFxuzZYag6BL3n57ofqqrtp0oHHRA&sig2=UVuf5vJTE6l6TWTVfvQPNQ&bvm=bv.75097201,d.dGc

34 Australian Bureau of Statistics 2014, Residential Property Price Indexes: Eight Capital Cities, Mar 2014, 6416.0, ABS Canberra, viewed 16 September 2014, http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6416.0Mar%202014

35 Your Investment Property 2014, Australia: The World's Second-Most Expensive Housing Market, viewed 16 September 2014, http://www.yourinvestmentpropertymag.com.au/news/australia-the-worlds-secondmost-expensive-housing-market-188613.aspx

36 Duty Calculator 2014, Import duty taxes when importing into Australia, viewed 16 September 2014, http://www.dutycalculator.com/country-guides/Import-duty-taxes-when-importing-into-Australia/

37 Parliament of Australia 2013, At what cost? IT pricing and the Australia tax, pg.3, viewed on 11 September 2014, http://www.aph.gov.au/parliamentary_business/committees/house_of_representatives_committees?url=ic/itpricing/report/fullreport.pdf

38 Vrondas, J 2014, 'The downside to a lower Australian dollar', Business Spectator, viewed 17 September 2014, http://www.businessspectator.com.au/article/2014/2/11/markets/downside-lower-australian-dollar

39 Parliament of Australia 2013, At what cost? IT pricing and the Australia tax, pg.17, viewed on 11 September 2014, http://www.aph.gov.au/parliamentary_business/committees/house_of_representatives_committees?url=ic/itpricing/report/fullreport.pdf

40 Parliament of Australia 2013, Inquiry on IT pricing, viewed on 11 September 2014, http://www.aph.gov.au/parliamentary_business/committees/house_of_representatives_committees?url=ic/itpricing/report.htm

41 GoEuro 2014, The GoEuro transportation price index 2014, viewed on 16 September 2014, http://www.goeuro.com/transportation-price-index

42 OECD 2014, OECD Health Statistics 2014, How does Australia compare?, viewed 16 September, http://www.oecd.org/els/health-systems/Briefing-Note-AUSTRALIA-2014.pdf

43 GlobalPetrolPrices.com 2014, Gasoline prices 15-Sep-2014, viewed on 16 September, http://www.globalpetrolprices.com/gasoline_prices/

44 Trading Economics 2014, Interest Rate - Countries - List, viewed 11 September 2014, http://www.tradingeconomics.com/country-list/interest-rate

45 Hotels.com 2014, The Hotel Price Index, pg.44, viewed on 11 September 2014, http://www.hotel-price-index.com/2014/fall/us

46 Hotels.com 2014, The Hotel Price Index, pg.34-5, viewed on 11 September 2014, http://www.hotel-price-index.com/2014/fall/us