Melbourne may be the second most expensive city in Australia after Sydney, but for expats who need to stick to a budget and a low cost of living, there are plenty of ways to save money.

Melbourne is ranked as the world’s 73rd most expensive city out of the 226 cities surveyed for Mercer’s 2024 Cost of Living Survey. Although ranked below Sydney, it’s more expensive than Brisbane, Canberra, Adelaide, and Perth.


Cost of accommodation in Melbourne

The biggest outlay for expats in Melbourne will be the cost of accommodation. Rental prices near the city centre can be particularly high. As with most cities, the further outside the city you live, the more money you can save – but there are still a few hotspots with high prices even an hour or more outside of Melbourne’s main centre of activity.

Find out more about Areas and Suburbs in Melbourne.


Cost of transport in Melbourne

To get around, most people in Melbourne find public transport to be the cheapest and most convenient option. To avoid traffic jams, high parking fees and fluctuating fuel prices, it’s not uncommon for city-dwelling expats to avoid owning a car altogether.


Cost of groceries in Melbourne

Grocery prices in Melbourne are largely in line with Australia’s average pricing. For expats who want great fresh produce, a lively atmosphere and lower prices, visiting the city’s markets will be the best option. Fresh food markets can be found in the city centre and suburbs all around Melbourne, and it’s usually well worth taking the time to explore these bustling food centres.


Cost of entertainment and eating out in Melbourne

While it’s home to a plethora of fine-dining restaurants, Melbourne also has an assortment of great places to eat out without breaking the bank. In the city centre and the suburbs, diners will find restaurants where they can eat fantastic food for little more than the cost of a fast-food meal. Locals are proud of the city’s ‘cheap eats’ and will probably be more than happy to provide recommendations.

As with eating out, Melbourne offers a diverse range of entertainment options to suit different budgets. For those who enjoy live entertainment, Melbourne is well known for its vibrant arts scene, including music, theatre and art exhibitions, some of which are free or low cost. Many of the city’s famous parks, beaches and gardens are free to explore and are popular for their stunning landscapes and diverse wildlife.

The cost of movie tickets, sporting events and other forms of popular entertainment are typically in line with other major Australian cities. Melbourne’s nightlife is another factor to consider, with a wide range of pubs, bars and clubs where prices can vary widely.


Cost of education in Melbourne

For expats with children, the cost of education in Melbourne is a key consideration. Public schools in Melbourne are largely free for Australian citizens and permanent residents, though temporary residents may have to pay a fee. The quality of public schools in Melbourne is generally high, making them an attractive option for many families.

There is also a range of private schools in Melbourne, including religious schools and international schools that offer various foreign curricula. Fees for these schools can vary significantly but tend to be high. Nevertheless, for those who value a particular style of education or wish for their children to follow a curriculum from their home country, these costs may be worth it.


Cost of healthcare in Melbourne

Healthcare in Melbourne, as with the rest of Australia, is primarily funded through Medicare, the public healthcare system. For those who are eligible – citizens and permanent residents – many healthcare services are free or heavily subsidised. This includes consultations with health professionals and hospital care.

However, expats not eligible for Medicare will need to rely on private health insurance, the cost of which can vary widely based on the level of coverage. It’s also worth noting that even with private insurance, there can be out-of-pocket costs for medical treatments.

In general, though, healthcare in Melbourne is of a high standard, and while it may be expensive, many expats consider it a good value for the quality of care received.


Cost of living in Melbourne chart

Prices may vary depending on product and service provider. The list below shows average prices for August 2024.

Accommodation (monthly rent)
Three-bedroom apartment in the city centreAUD 4,300
Three-bedroom apartment outside the city centreAUD 2,800
One-bedroom apartment in the city centreAUD 2,300
One-bedroom apartment outside the city centreAUD 1,900
Food and drink
Dozen eggsAUD 6.50
Milk (1 litre)AUD 2.15
Rice (1kg)AUD 3.30
Loaf of white breadAUD 4
Chicken breasts (1kg)AUD 13
Pack of cigarettes (Marlboro)AUD 45
Eating out
Three-course meal for two at a mid-range restaurantAUD 110
Big Mac MealAUD 15
Coca-Cola (330ml)AUD 4.15
CappuccinoAUD 5.30
Bottle of beer (local)AUD 12
Utilities/household
Monthly mobile plan (calls and data)AUD 40
Internet (uncapped ADSL or cable – average per month)AUD 78
Basic utilities (average per month for a standard household)AUD 220
Transportation
Taxi rate/kmAUD 3
City-centre public transport fare (one-way ticket)AUD 5.30
Gasoline (per litre)AUD 1.94

Expat Health Insurance

Cigna Health Insurance

Cigna Global Health Insurance

Moving your family abroad can be intimidating, but learning about medical options such as family health insurance early on can help you successfully settle in.

  • Comprehensive family coverage, wherever you go
  • Paediatric coverage for well-child visits & immunisations
  • Access to dental and orthodontic care
  • 24/7 multilingual customer service

Get a quote from Cigna Global

Moving Internationally?

Sirelo logo

International Movers. Get Quotes. Compare Prices.

Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget.

Get your free no-obligation quotes from select removal companies now!