Is Australia an expensive country?

[AMR]

I wonder if you included the VAT/GST rate difference in your tax comparison.

This is the line that Australian retailers are running at present and it isn't true.

My interest is in electric guitars, amplifiers and such. You can save thousands even after GST, freight etc.

I recently priced an amp with a best price in Australia of around $6,500. I can get one securely freighted from the US plus pay GST for about $4,000 - $4,500. For the difference I can fly to LA for a week's holiday and collect it myself!

Similarly a Gibson Custom guitar best price here $5,250; landed here from US for under $4,000.

Recently got a Canon camera tax free in Sydney for $450; can buy it fully landed here for $280! Won't fall for that again.

All these items have global warranties.

Go to the Neimann Marcus website and see what just about any item of shoes, clothing makeup etc. costs compared with here. You'll wonder why anyone buys anything except groceries and whitegoods locally. I sure won't be anymore.

 

[justcallmeryan]

First time poster, long time "lurker" so here it goes.

This thread caught my eye as I am a Canadian expat now living in Sydney after many years in California. So gives some unique perspective on the issue of cost of living. Also I am currently writing this from freezing Toronto so can easily give some insight into cost of living.

From personal experience Australia is expensive to live in, but not much more so than Canada, UK or even big cities in the USA. Grocery shopping and cost of utilities, and also the cost of going out for a beer in comparable places is similar. Things like electronics, clothing and consumer goods tend to be cheaper here in North America, and of better quality.

As this is a travel forum, a lot of comments on the price of travel have been made. I don't find flying or eating out in OZ any more expensive than in similar places around the world - however accommodation is much pricier down under. Came back from a holiday in Broome in September where I paid over $250 per night for a dump. In comparison a night at the Hyatt downtown Toronto sets you back about $175 per night and it's 4 stars!

Flights between the major cities in OZ have come down in price substantially since Mr Branson started flying, and the same goes here in Canada/USA. It's still expensive to go to smaller, less visited areas just like in OZ. For international travel from OZ, one must factor in that to get anywhere from down under takes a lot longer than from anywhere else in the world! Hence the added price. Anyway, prices from OZ to Canada and the US are half of what they were when I first moved there - keeps me happy!

Personally I am much better off with my OZ salary than doing the equivalent jobs in Canada or US. At current exchange rates, I am doing much better and my dollars stretch a lot further. If the OZ dollar was worth 25% less than it is now, would we still be having this conversation?

I used to think real estate down under was ridiculous, but then a couple of my friends moved to the UK! YIKES! And anyway, outside of the eastern suburbs of Sydney where I live, it's not so bad.

merry Christmas all and I look forward to reading lots more posts in 2011

 

[cove]

The changes in value of the Australian currency has been extreme compared to the UK pound ,US dollar and the Euro.
This has been the cause of most of the big differences.
I still think it is cute that in a shop like David Jones they keep the old list prices when their stock from overseas may be 30 or 40 per cent less than a year ago.
We are being given a big opportunity to buy assets overseas as a result and it may be that once in a lifetime opportunity to get set.

 

[Mojopac]

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?

I travel both to Asia and the UK annually. Is Australia expensive? Not by a long shot.
I'm mortified when I go to the supermarkets ( Tesco's etc) and look at the price of meat. I need to take out a mortgage to get a decent roast beef. Wine, similar. Train transport, one would think you were buying the seat. Petrol, about $2.15 a litre at last vist ( june 10). Hotels in London are outrageous....for a box room with a view of a brick wall it was $315+ per night. ( tourist class) This year we went upmarket..$500+ per night, but ideally located in the heart of Soho so I can't complain there, we'll actually stay there again this year, so convenient and yes, very nice. I now live in Queensland ( formerly of Bondi) and find living here to be far cheaper than Sydney and a great way of life.
If you go to the US without health insurance, sell your house!

 

[clifford]

I travel both to Asia and the UK annually. Is Australia expensive? Not by a long shot.
I'm mortified when I go to the supermarkets ( Tesco's etc) and look at the price of meat. I need to take out a mortgage to get a decent roast beef. Wine, similar. Train transport, one would think you were buying the seat. Petrol, about $2.15 a litre at last vist ( june 10). Hotels in London are outrageous....for a box room with a view of a brick wall it was $315+ per night. ( tourist class) This year we went upmarket..$500+ per night, but ideally located in the heart of Soho so I can't complain there, we'll actually stay there again this year, so convenient and yes, very nice. I now live in Queensland ( formerly of Bondi) and find living here to be far cheaper than Sydney and a great way of life.
If you go to the US without health insurance, sell your house!

This is a very strange post. I am a dual UK/AU citizen and I find most of this post to be quite superficial.

I travel to the UK about 10 times a year for business (self funded) and to visit my relatives. I often book Travelodge hotels for GBP 9.00 a night (they're actually quite nice, much better than those horrible Accor hotels).

Beer (proper lager) is much cheaper than Aus and most groceries are also much cheaper. Sure, wine and fresh meat are more expensive, but you just need to change your outlook on life (if you can't do this, just don't go).

So please don't whinge about things you don't understand.

 

[Flashback]

This is a very strange post. I am a dual UK/AU citizen and I find most of this post to be quite superficial.

I travel to the UK about 10 times a year for business (self funded) and to visit my relatives. I often book Travelodge hotels for GBP 9.00 a night (they're actually quite nice, much better than those horrible Accor hotels).

Beer (proper lager) is much cheaper than Aus and most groceries are also much cheaper. Sure, wine and fresh meat are more expensive, but you just need to change your outlook on life (if you can't do this, just don't go).

So please don't whinge about things you don't understand.

I'm guessing you mean 90 GBP/night as not even hostels are that cheap :shock:

 

[NM]

I'm guessing you mean 90 GBP/night as not even hostels are that cheap :shock:

Was GBP 49 for most Travel Lodge and Travel Inns last time I looked - a little more in places like London and some places a little less. Generally good value accommodation and consistent offering between properties. nine pounds would indeed be excellent value!

 

[froggerADL]

Was GBP 49 for most Travel Lodge and Travel Inns last time I looked - a little more in places like London and some places a little less. Generally good value accommodation and consistent offering between properties. nine pounds would indeed be excellent value!

My brother stayed at the Travelodge in Tolworth, 20kms SW from London, for GBP 9 last year. The special is now GBP 19. I think he got the one in Kingston for GBP 19 too.

You won't get it for that when Wimbledon (5kms down the road) is on though.

 

[NM]

My brother stayed at the Travelodge in Tolworth, 20kms SW from London, for GBP 9 last year. The special is now GBP 19. I think he got the one in Kingston for GBP 19 too.

You won't get it for that when Wimbledon (5kms down the road) is on though.

Bargain price! Certainly would not be complaining at that rate.

Travel Lodge is a little more variable than Travel Inn. With the Travel Inns they buy a block of land near a motorway exit, clear it, unload a few shipping containers, add water, and hey presto you have an instant motel. They all have the same carpet, same furniture, same room layout etc. They only variable is the number of rooms and the restaurant attached. But at least you know what to expect for your money.

 

[JohnK]

Australia is very expensive when the cheapest motel I could find in Mackay for the first weekend in March is $109/night.

So I thought with 4 Choice Hotel properties to look at earning 250 Delta Skymiles a night and the cheapest Comofrt Inn is $125 for first night and the other Comfort Inn is $144 for second night. They are only Comfort Inns.

I am really confused why friends and family cannot understand why I like to spend my holidays in Thailand instead of a new destination in Australia.

 

[medhead]

Australia is very expensive when the cheapest motel I could find in Mackay for the first weekend in March is $109/night.

There's this thing called a mining boom. You might have heard about it.

 

[JohnK]

There's this thing called a mining boom. You might have heard about it.

Mining boom? Trumped! We are still in the middle of a global financial crisis that is just waiting for the next installment....

 

[drron]

There's this thing called a mining boom. You might have heard about it.

Unfortunately Mackay's mining boom has been somewhat dampened.
That said even if it was cheap mackay is not the place I would want to visit even though I do work there from time to time.

 

[medhead]

GFC has been little more than a blimp for mining.

Unfortunately Mackay's mining boom has been somewhat dampened.

With the mopping up creating more demand.

 

[oz_mark]

An interesting comment attributed to the merchandising manger at Coles:

''I am a firm believer still that many of the multinationals today are still using Australia as a cash cow,'' Durkan says. ''I have little doubt, when I look at the prices on the shelves of some of the big proprietary brands, and I look at the margin we make as a company, it can't just be the cost of production and the geography of Australia. It can't be … they make more margin out of this part of the world than they do out of Europe. You have got to ask yourself why''

Coles takes the battle to Woolies

 

[Oneworldplus2]

If Australia is such an expensive, why are the Irish youth making their way here instead of somewhere closer to home, ie, England?

Irish Republic - Goodbye, My Ireland - Foreign Correspondent - ABC

 

[Mal]

If Australia is such an expensive, why are the Irish youth making their way here instead of somewhere closer to home, ie, England?

Hmm. It's a fairly easy choice.
Great employment prospects here (UK is still quite murky and ROI/Ireland is dire)
Weather improvements.
General good reputation of Australia.
Good conversion rate of money earnt here back to GBP/Euros

Having a job in an expensive country is probably better than no job in a relatively expensive country (Ireland has always been reasonably expensive)

 

[Oneworldplus2]

Hmm. It's a fairly easy choice.
Great employment prospects here (UK is still quite murky and ROI/Ireland is dire)
Weather improvements.
General good reputation of Australia.
Good conversion rate of money earnt here back to GBP/Euros

Having a job in an expensive country is probably better than no job in a relatively expensive country (Ireland has always been reasonably expensive)

(But, let's keep that between you and I Mal....LOL)

 

[JohnK]

Australia is very expensive when the cheapest motel I could find in Mackay for the first weekend in March is $109/night.

The mining boom must be on the way out as I managed to find a room in a motel for $99/night for this weekend in Mackay.

Still way too expensive for accommodation in a motel in Australia.

And what is it with hotels/motels charging $18.95 for breakfast in Australia? How much profit is in that breakfast for the hotel/motel?

Stuff it! I am not paying those ridiculous prices. I am going to boil 4 eggs, take 2 tins of tuna, buy a loaf bread and ham and cheese in Mackay and I think the total cost for food would be <$20 for the weekend.

 

[RB]

The mining boom must be on the way out as I managed to find a room in a motel for $99/night for this weekend in Mackay.

Still way too expensive for accommodation in a motel in Australia.

And what is it with hotels/motels charging $18.95 for breakfast in Australia? How much profit is in that breakfast for the hotel/motel?

Stuff it! I am not paying those ridiculous prices. I am going to boil 4 eggs, take 2 tins of tuna, buy a loaf bread and ham and cheese in Mackay and I think the total cost for food would be <$20 for the weekend.

I guess you need to take into account the freehold value of the motel, total hours worked in the week by owners or leesee, staff wages, power & water costs, food wastage to decide if the room rates & food costs are over the top. You can't just add up the cost of the bacon, eggs, toast & fruit juice and say thats how much it should be. We all have the option of opting out of dining out (sometimes more difficult to organise) & you are going to do that. Make sure you use the room facilities that you have paid for to keep your food fresh