Is Australia an expensive country?

[Durin's Bane]

Certainly clothing, shoes, luxury goods etc are hideously expensive in Oz, so much so that my wife and I always purchase these items online or overseas. Even when the AUD is at US75c these types of goods are cheaper in the USA and parts of Asia, so when it's on par the price comparisons are laughable.

Economies of scale are only one side of the story - the market in Oz is willing to bear high prices as many Aussies just don't know any better and "blindly" purchase these types of goods.

I don't mind paying more, as long as the service is commensurate with the price - sadly Oz severely lacks in this area...

 

[Warks]

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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The Humpty Doo Hotel of course! Jumbo burger and a schooner for $9.50 when I was there a month or so back!
The ambiance is supplied free of charge!

 

[Flashback]

The Humpty Doo Hotel of course! Jumbo burger and a schooner for $9.50 when I was there a month or so back!
The ambiance is supplied free of charge!

Nope.. wasn't the Humpty Doo Hotel! Can't remember what it was (Lloyd's One maybe) but I know it wasn't HDH! :mrgreen:

 

[serfty]

Umm used to regularly get a steak and beer for $8 in Sydney. Haven't been back to that pub for a while.

Of course, in most Pubs in Melbourne, the pint alone will set one back $8 - what's that £5 worth ... ~$8!

 

[Sprucegoose]

Of course, in most Pubs in Melbourne, the pint alone will set one back $8 - what's that £5 worth ... ~$8!

Yes but melbourne is number 3

 

[frankieholt]

Sydney is quite expensive that is what I can say

 

[Bundy Bear]

Rather expensive drinks compared to when I was in London last weekend.

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[oz_mark]

At least the spaghetti was free :mrgreen:

 

[Sprucegoose]

It's a very subjective question and analysis.

What is 'expensive' to one will be good value or acceptable to others

By way of example I will pay the cost of a good single malt on what I consider a top olive oil. Other people wont do that. And then we have to travel.

Can I get that overseas? Alternatives?

There are cost of living indices done for expats regularly. Haven't had my hands-on one for a while but they compare a basket of goods and general cost of living which determines allowances and uplifts etc

Does anyone have a tabulated COLA comparatives which take into account FX?

 

[Sprucegoose]

Rather expensive drinks compared to when I was in London last weekend.

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Was the draft a Pint? Hope so

 

[Mal]

Was the draft a Pint? Hope so

$11 for a Peroni pint in Freo last night at a pub....

In London, usually a pint of Peroni was "expensive" at around 4.50 pounds, perhaps 5 in a pub. Again, yet another example of the price differences.

 

[Sprucegoose]

$11 for a Peroni pint in Freo last night at a pub....

In London, usually a pint of Peroni was "expensive" at around 4.50 pounds, perhaps 5 in a pub. Again, yet another example of the price differences.

Struth I thought 10 bucks was enough when I lived in the big noodle!!

Mining boom obviously!

 

[Oneworldplus2]

Very interesting topic Anat0l. It's hard to do direct comparisons l think. Sure, a beer might be cheaper in London, but your not earning the same amount of money there, as you are here.
A whole range of other factors come into play too

• public transport costs/running car costs
• council rates (water/rubbish removal etc etc)
• rent/mortgage
• petrol
• food
• income and taxation rates
• rates for heating house/unit (l've seen electricity bills almost the same price as the rent in Germany during winter :shock

Good Question Mate.

It all depends upon relativities.

I earn more than my counterparts in the UK and the US, so no Australia is not that relatively expensive. It depends on your income and expenses and in that regard is quite individual.

Many make a living out of such comparisions.

It's a very subjective question and analysis.

What is 'expensive' to one will be good value or acceptable to others

That about sums it up. If l earned $1million per year, l wouldn't care what the cost of a tomato/bread/milk/petrol is.

$11 for a Peroni pint in Freo last night at a pub....

In London, usually a pint of Peroni was "expensive" at around 4.50 pounds, perhaps 5 in a pub. Again, yet another example of the price differences.

I too noticed that Perth was "very" expensive, even more than Sydney/Melbourne.
I came to three conclusions;
1) Costs involved to freight goods to WA (interstate).
2) FIFO Miners earning a bucket load of $$$
3) In pubs, they don't have poker machines, which give additional income.


Another example.
Friend says to me a few weeks ago, "Man, that cappuccino and cake was expensive, $10AUD all up."
I'm thinking in my head, hold on mate, your earning 160k pa, yet in Europe, you'd be on 60% "less" and might pay 6 or 7 Euro for the same. You do the math.

Or, as a last resort
If it's so expensive and you don't like it, move (could be hard for some people that last one).

 

[Mal]

If it's so expensive and you don't like it, move (could be hard for some people that last one).

Yeah, it's a valid option for some. Although, really with the Internet and shopping online you can have the best of both worlds at times (eg buying books and electronics from overseas). You could even import certain food/cigarettes/alcohol yourself if you have friends in the industry. There's a good reason why Gerry Harvey wants GST added to imports - he knows exactly what will happen over the next 12 months (ie huge amounts of people buying things online and importing them, stores in Australia having to sacrifice some margins to remain competitive. I've never before seen so much retail confidence in buying online from overseas, but now see it often talked about in the media and when talking with friends)

 

[auriga]

Another example.
Friend says to me a few weeks ago, "Man, that cappuccino and cake was expensive, $10AUD all up."
I'm thinking in my head, hold on mate, your earning 160k pa, yet in Europe, you'd be on 60% "less" and might pay 6 or 7 Euro for the same. You do the math.

Sorry, I don't get this. Why would one be on 60% less in Europe?

 

[Oneworldplus2]

Sorry, I don't get this. Why would one be on 60% less in Europe?

Sorry, l should have been a little bit more clearer in my response.

FIFO WA Pilbara rate, compared to Domestic work rate in Germany.

 

[anat0l]

Sorry, I don't get this. Why would one be on 60% less in Europe?

The way I read it he was trying to imply the number is 60% less. That is, take your salary in AUD, rip off the dollar sign, take 60% of that and then tack on the Euro sign and you have your salary in Europe. I could be wrong, but that's how I read it.

FIFO WA Pilbara rate, compared to Domestic work rate in Germany.

FIFO rates especially in WA are inherently disproportionate, however. It's really difficult to make any sort of comparison between what you get paid there compared to anywhere else. I mean, someone who drives a truck in the Pilbara gets paid more than a graduate dentist. Go figure...

 

[Oneworldplus2]

Right on que and the SMH has an article relating to Australian tourism.

Tourism Australia | State of the industry report | Clive Dorman

The holiday is over

November 27, 2010

Photo: James Davies
Leaving on a jet plane ... more Australians are choosing overseas holidays.


Tourism in Australia is flagging but the industry has grand plans for a revival, writes Clive Dorman.

Australian tourism has hit rock-bottom. Like an addict looking for a road to recovery, the industry finally conceded last week there is a problem.

The State of the Industry report by the federal government's Tourism Research
Australia agency, which was presented at the industry's first Tourism Directions conference in Canberra on November 15, laid out the stark reality that tourism ran into a brick wall a decade ago.

 

[anat0l]

Right on que and the SMH has an article relating to Australian tourism.

Tourism Australia | State of the industry report | Clive Dorman

To the team that prepared that State of the Industry report: thank you Team Obvious. Now go report outside where you will be promptly and deservedly shot.

Seriously, the whole thing can be boiled down to "high prices for poor value for money and poor service". It's really mostly an attitude thing, although for the same price you pay for "good" hotels in Australia you can usually go to another first world country, pay a similar or slightly higher amount and get a much better quality hotel (i.e. quality meaning the hotel looks better, feels fresher, offers better facilities and generally takes care of you better).

Australia: We waste your money and we waste your time.

 

[Warks]

London pub prices 1989:

Pints (price in pounds)
Carlsberg 1.32
Fosters 1.40
Holsten 1.46
Bitters 1.30 - 1.46

Exchange rate about 40p to the dollar as I recall.

I can remember a schooner (425mL not 375mL back then) in NSW was about $1.30.
So if my calculations are correct (and they might not be) the pint of Carlsberg was $3.30 or $2.36 per schooner.

So back in my young travelling (and pub working) days there was quite a difference. Exchange rates have played a part but I'm convinced Australia is becoming "Sweden of the South" - the problem is that most things are expensive and people accept that but you can pay a lot and still get cough - a bit like the UK when I was there.