Is Australia an expensive country?

[anat0l]

The more I travel overseas to traditionally "expensive" societies like the UK, parts of Europe, Japan and the US, I some how come to the realisation that Australia is a pretty expensive place to live.

Houses cost a lot. Accommodation is markedly expensive without sales (on a quality-on-quality basis more than just a brand-on-brand; mind you, you can find some good deals on accommodation on non-chain overseas, whereas in Australia, sometimes even the non-chain competition is still expensive for the quality). Food is quite expensive (and again, a quality-on-quality comparison can be made for a given cost), even though we live in a non-compulsory tipping society. In terms of first world countries (assuming Australia is one), we probably rank amongst the worst in public transportation - cost, quality and options. Not to mention, as we do whine a lot on this site, air travel is comparatively (sometimes stupefyingly) more expensive ex-AU compared to other nations (whether it be ex- that nation to other nations (i.e. comparing "like-on-like" sectors/markets) or to Australia).

This could be all a function of our nation being very large, lacking the economies of scale or just that Australia really is an expensive place to live.

Now of course we can never be as cheap as nations like the Philippines, Malaysia, Thailand, etc. but that's not an awfully fair comparison...

What do you all think?

 

[Fantic125]

In comparison to the US I would agree to a certain extent.
Their general cost of living (food, clothing, petrol, etc) is less costly than ours, however their social support network (unemployment benefits, reasonably priced hospital & medical access, superannuation/pensions, etc) is nowhere near the level available in Australia.
In the major cities their public transportation is pretty good, but in the smaller cities it can be pretty average.

In comparison to the UK/EU, I would say our cost of living is less.
Fuel in general is about 1.5 times our price. Food, housing, etc is more costly, but cars are less expensive to buy. Depending on the country, their social support network can be of similar standard to ours. In general public transport isn't too bad.

I think where Australia really sucks is that we are over-governed and over-regulated at Federal, State and Local Council levels, and the majority of people will blindly accept more restrictive laws and regulations from increasingly conservative governments which will continue to make Australia a more expensive (and restrictive) place to live.

(But that's just my opinion )

 

[medhead]

This could be all a function of our nation being very large, lacking the economies of scale

I think you've just about hit the nail on the head with these factors. Plus over regulation plays it's part.

I do think that the price comparisons examples you mentioned were a bit selective being focussed on travel type expenses, other than housing. Restaurants may be more expensive but what about supermarket food?

But yes there are many things that are more expensive and lack of scale and population density are big reasons why. IMO.

 

[JetLagged]

I travel to the UK fairly regularly, and given that I often get to stay with friends, make use of their supermarkets and other basic necessity shops quite often.

Petrol: at 1.15 pounds or more per litre - way more expensive than Australia!
Meat: brings us back to the thought of the 1950sw when chicken was a rarity. Their price for meat is hideous - always has been, suppose it always will be. Beef averages 15 pounds for basic cuts, lamb is approximately 40% dearer than here, and good pork is close to double.
Bought meals: I really quiver when asked to pay the equivalent of $8-10 for a basic sandwich (rarely made fresh on the spot) and $28 for a steak in a pub which back here we would get for $10 (and with a drink). Pub meals are basic but expensive.
Housing: depending on where you look at, some of their costs are astronomical: again, often see places which would track around $600,000 here going for at least 50% above that. And no, not just talking about London - that is a different ball game altogether.
Motel costs:a quote of $500 per night for a very small room in London without the basic Aussie amenities like a bar fridge, air-conditioning or even a fan (when it was 30 C), and looks of high dungeon when you complain (and that was back in 2006 pricing when for the same price I would have got a large habour-view ropom in Sydney, possibly with a butler thrown in!)

As for the difference in regulation levels, compare our levels with both domestic and EU policy restraints in the UK - from fish quotas and controls, to Graded building regulations (try installing modern facilities like air-conditioning in the UK building that is not even graded), to the requirement that all new windows installed must be double-glazzed PVC (heavens sake, they want energy efficiency yet install both windows and doors that are ugly, don't suit the premises, and also consume so much energy in their making as well as noxious by-products).

I'm not saying that Australia doesn't have similar pricing issues in other areas - but I find when staying in the UK that money goes a lot less of a way - figures show that UK workers have to work longer than many of their EU con terparts to pay for basic necessities and have less of a choice about them as well.

 

[JohnK]

One could say that Australia is relatively expensive in some areas like the service industry but when you look at supermarket prices they are cheaper. Also do we have higher indirect taxes for certain goods like tobacco and alcohol?

- Tobacco and alcohol is riidiculously expensive
- Airfares are expensive
- Accommodation is expensive (A simple motel charges $100-$120/night unless you can find a sale)
- Transport (especially public transport) is expensive
- Restaurants and cafes/coffee lounges are expensive

 

[samh004]

I travel to the UK fairly regularly, and given that I often get to stay with friends, make use of their supermarkets and other basic necessity shops quite often.

Motel costs:a quote of $500 per night for a very small room in London without the basic Aussie amenities like a bar fridge, air-conditioning or even a fan (when it was 30 C), and looks of high dungeon when you complain (and that was back in 2006 pricing when for the same price I would have got a large habour-view ropom in Sydney, possibly with a butler thrown in!)

I managed about ~$200 a night for a nice sized room in Kensington earlier this year. Maybe you’re talking about different things, but I certainly had no troubles. That being said I do think Australia is pricey, but then some other places are even dearer haha

Nothing’s cheap!

 

[RB]

I travel to the UK fairly regularly, and given that I often get to stay with friends, make use of their supermarkets and other basic necessity shops quite often.


Motel costs:a quote of $500 per night for a very small room in London without the basic Aussie amenities like a bar fridge, air-conditioning or even a fan (when it was 30 C), and looks of high dungeon when you complain (and that was back in 2006 pricing when for the same price I would have got a large harbour-view room in Sydney, possibly with a butler thrown in!)

I guess we need to take into account that the Aussie $ was buying about 42p at the time

 

[oz_mark]

Food is quite expensive (and again, a quality-on-quality comparison can be made for a given cost), even though we live in a non-compulsory tipping society.

You could argue that food is expensive because we live in a non-compulsory tipping society. We pay our service staff a fair wage.

 

[drron]

You could argue that food is expensive because we live in a non-compulsory tipping society. We pay our service staff a fair wage.

Though in Dallas we had 2 meals of Dungeness crab with all the trimmings plus a bottle of wine.The Amex charge both times was just under $A90-and this included tax and tip.
In Devonport this week a very ordinary Thai meal for 2-chicken and beef dishes-plus a bottle of wine $99.
No prizes for guessing which I thought the beyyer value.
One week ago the driver taking mrsdrron to MCY asked her where she was going-told Tasmania.His reply-i really wanted to go there for my next holiday but 2 weeks in the USA was cheaper.

 

[Dalescott]

Like everything it depends on where, and when. If say you buy in London or New York it's going to be more expensive than say Hawick, or Miami. As to when, well try London in June/July, and then go North to Hawick in Scotland, and you will see the difference. We go twice a year to Scotland, and never in June or July. Why because it's full of Bloody Australian Tourist's.

 

[simongr]

It is a really interesting question and there are lots of areas where comparisons don't make sense.

Property is a great example - I live physically further away from the centre of town than I could possibly imagine owning a house in the UK but my commute is the same as other poeple's and I am paying a similar price for that property.

In australia we pay a fortune for imported goods - clothes (I tend to buy Ralph Lauren at a fraction of the price in the US that I would pay here), watches, cars - all dramatically cheaper than I would pay here. Westhuf Classic Ikon knives purchased for around $120 in the UK would be $250+ here...

There is also range - I pay a premium here and get fewer choices than in the US or UK. This applies to lot of food stuffs as well they ismply aren't available here (tried buying fresh truffles recently?)

People coming to OZ from the UK find it horrendously expensive now because of the exchange rate. My team is criticised for being hugely overpaid - but that is because of movements in the exchange rate (I am in fact now paid more than my UK boss in GBP terms).

However I can have a nice dinner out at a BYO for $50 for two here that I simply can't do in the UK.

 

[Mal]

I travel to the UK fairly regularly, and given that I often get to stay with friends, make use of their supermarkets and other basic necessity shops quite often.

Hmm, Well I did live there for a year (not too long ago), and have to disagree with some of your points.

Yes petrol is expensive. Always has been.

Meat. I didn't find the prices too bad. BOGOs and specials often kept the prices down. Things like sausages, Bacon, mince and other simple meats were cheaper. Proper cuts of meat were a little more expensive, but if you shopped wisely, sales would give good prices.

Sandwiches. Yeah I agree to an extent, but seeing Tesco/Sainsbury's would have a ham and salad sandwich for circa 2-3 pounds - that is the equivalent (or better) than what you would pay here. Buy a cheaper sandwich with a meal deal and you couldn't do better here (sandwich + 500ml Coke + pack of crisps for 2-3 pounds). Keep in mind, there really is no equivalent in Australia of Pret or those types of sandwich chains.

Pub Food. Depends on the pub and the location. There is both cheap and good food available in pubs. Granted, Australia has improved the pub culture while I was away and prices did drop a little.

Pub alcohol. There is no comparison. Alcohol cheaper in the UK by a considerable margin. You could often buy a bottle of Champers in a pub for less than the price of a bottle in a bottlo in Australia (for example!).

Accom. This is a horrible comparison to try and make - simply because the range of factors affecting price are too great.

Clothes. Much cheaper in London for both basics and brands.

Overall I found London decently priced (as a local), but that does depend on a lot of things such as where you shop, where you eat etc. Coming back to Oz and seeing the price of retail items made me cringe greatly.

 

[Flashback]

Hmm, Well I did live there for a year (not too long ago), and have to disagree with some of your points.

Yes petrol is expensive. Always has been.

Meat. I didn't find the prices too bad. BOGOs and specials often kept the prices down. Things like sausages, Bacon, mince and other simple meats were cheaper. Proper cuts of meat were a little more expensive, but if you shopped wisely, sales would give good prices.

Sandwiches. Yeah I agree to an extent, but seeing Tesco/Sainsbury's would have a ham and salad sandwich for circa 2-3 pounds - that is the equivalent (or better) than what you would pay here. Buy a cheaper sandwich with a meal deal and you couldn't do better here (sandwich + 500ml Coke + pack of crisps for 2-3 pounds). Keep in mind, there really is no equivalent in Australia of Pret or those types of sandwich chains.

Pub Food. Depends on the pub and the location. There is both cheap and good food available in pubs. Granted, Australia has improved the pub culture while I was away and prices did drop a little.

Pub alcohol. There is no comparison. Alcohol cheaper in the UK by a considerable margin. You could often buy a bottle of Champers in a pub for less than the price of a bottle in a bottlo in Australia (for example!).

Accom. This is a horrible comparison to try and make - simply because the range of factors affecting price are too great.

Clothes. Much cheaper in London for both basics and brands.

Overall I found London decently priced (as a local), but that does depend on a lot of things such as where you shop, where you eat etc. Coming back to Oz and seeing the price of retail items made me cringe greatly.

I'd have to agree with Mal on the majority of these points. Having only done a few 'big' supermarket shops I am slowly able to see the comparisons between pricing in AU vs UK.

Clothes, you get high quality items for the same cost as mid-quality back home (especially in terms of business attire).

 

[Mal]

Having only done a few 'big' supermarket shops I am slowly able to see the comparisons between pricing in AU vs UK.

It's simple to compare (for example) Sainsbury's with Woolworths thanks to "home shopping"

Sainsbury's online groceries
https://www.homeshop.com.au/website/index.jsp

A few random comparisons:
Beef Mince.
Sainsbury's : £2.42/kg (for basic mince)
Woolworths: $7.96/kg (again basic mince)

Plain Flour:
Sainsbury's: £0.35/kg (home brand, 1.5kg pack)
Woolworths: $0.99/kg (home brand, 2kg pack)

Kraft Philli Cheese:
Sainsbury's: £6.07/kg (300g tub)
Woolworths: $17.04/kg (250g tub).

I could go on, but I found that groceries are on average a lot cheaper in the UK than Australia.

 

[Flashback]

It's simple to compare (for example) Sainsbury's with Woolworths thanks to "home shopping"

Sainsbury's online groceries
https://www.homeshop.com.au/website/index.jsp

A few random comparisons:
Beef Mince.
Sainsbury's : £2.42/kg (for basic mince)
Woolworths: $7.96/kg (again basic mince)

Plain Flour:
Sainsbury's: £0.35/kg (home brand, 1.5kg pack)
Woolworths: $0.99/kg (home brand, 2kg pack)

Kraft Philli Cheese:
Sainsbury's: £6.07/kg (300g tub)
Woolworths: $17.04/kg (250g tub).

I could go on, but I found that groceries are on average a lot cheaper in the UK than Australia.

And as it turns out, my largest local superstore is indeed a Sainsbury's

I think there is a Tesco not too far away also, as well as a Tesco Express right next to the gym I goto.

 

[samh004]

I could go on, but I found that groceries are on average a lot cheaper in the UK than Australia.

To be fair they do have a higher population, in a smaller country size, with closer connections to other markets

 

[Mal]

To be fair they do have a higher population, in a smaller country size, with closer connections to other markets

And more competition ... something lacking in Australia.

 

[Flashback]

And more competition ... something lacking in Australia.

I find it quite humorous that Waitrose (one of the traditionally more expensive places) makes a point of putting a sign out the front that says "we match Tesco for prices on X amount of products every day" ; what about the rest of the products?

 

[samh004]

And more competition ... something lacking in Australia.

True, though I saw a great report on how the areas with Aldi’s nearby have lower prices in the big stores (Coles, Woolworths) and they’re opening more stores in more areas, so prices are coming down little by little… so long as you like in an area with all 3 brands.

 

[Bundy Bear]

Beadon Rd, Hammersmith, Greater London W6 0, UK

Australia an expensive place yes, where can you find burger with a drink for under $10

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