Inflation rate and national economic growth.Many factors go into measuring the standard of living, such as: Cost of living, on the other hand, only describes the price of basic necessities. Standard of living describes the level of wealth, comfort, and necessities available to someone based on their socioeconomic status and location. If prices rise, low-income households feel it the most.Ĭost of living is therefore crucial to consider when it comes to personal finances, as it shows us how the larger economy affects our individual circumstances. This especially impacts low-income households, since they have to spend a larger part of their budget on non-discretionary items like food or petrol. Generally, a higher cost of living means that basic expenses have become – well, expensive. According to Expatistan, this means Australia is one of the most expensive places to live (ranked 10 out of 72).
Meanwhile, collaborative database Expatistan estimates the current cost of living in Australia is roughly $3,828 per month for a single person or $7,134 per month for a family of four, just for the bare essentials. However, because the cost of living varies so much around the country, it’s a little difficult to pinpoint exact prices.įor example, the Department of Home Affairs requires international students to demonstrate they can cover living costs of at least $21,041 per year (or $1,754 per month) for a single person, not including any tuition fees or payments, though this number is more reflective of living costs back in 2019. Someone living in a capital city, for example, won’t have the same cost of living as someone in a regional area.
These costs can be a useful comparison tool, since they vary depending on time period and where you live in Australia. It depends! The cost of living is the amount of money it takes to afford basic and necessary expenses, such as:
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