Cost of Living in Australia 2026: Rent, Wages and Prices
Australia pays well and costs a lot. Average full-time earnings are above AUD 2,000 a week, but prices rose 4.0% in the past year and housing costs rose faster. This guide puts the official figures side by side, from the Australian Bureau of Statistics, the Fair Work Ombudsman and the Australian Taxation Office, as published on 13 October 2026.
Quick answer
Consumer prices in Australia rose 4.0% in the 12 months to August 2026, with housing up 5.7%, electricity up 13.2% and rents up 3.6%. Average weekly ordinary time earnings for full-time adults were AUD 2,083.70 in May 2026, and the National Minimum Wage is AUD 26.44 an hour, or AUD 1,004.90 a week, from 1 July 2026. The median rent for new lettings in Melbourne was AUD 580 a week in the latest Victorian government report. Residents pay no income tax on the first AUD 18,200, then 15 cents in the dollar up to AUD 45,000, plus a 2% Medicare levy. The government's own living-cost benchmark for a student is AUD 29,710 a year.
Prices: what rose and by how much
The Australian Bureau of Statistics (ABS) publishes the Consumer Price Index every month. These are the changes over the 12 months to August 2026.
| Category | Annual change |
|---|---|
| All groups (headline inflation) | 4.0% |
| Trimmed mean (underlying inflation) | 3.6% |
| Housing | 5.7% |
| Rents | 3.6% |
| Electricity | 13.2% |
| Transport | 5.6% |
| Automotive fuel | 13.5% |
| Food and non-alcoholic beverages | 3.0% |
| Health | 3.9% |
| Education | 4.7% |
| Insurance and financial services | 3.5% |
| Alcohol and tobacco | 4.8% |
The ABS attributes the jump in electricity largely to the ending of Commonwealth electricity rebates, and the rise in fuel to higher world oil prices and the unwinding of fuel excise relief. Within food, meals out and takeaway rose 4.1%.
Inflation by capital city
| City | Annual CPI change to August 2026 |
|---|---|
| Melbourne | 3.5% |
| Sydney | 3.9% |
| Brisbane | 4.1% |
| Canberra | 4.1% |
| Perth | 4.3% |
| Darwin | 4.5% |
| Adelaide | 4.7% |
| Hobart | 4.8% |
Rent
The ABS measures how fast rents are changing, not what they cost. Rent levels come from state sources such as Victoria's Rental Report, which is built from rental bond data. Its latest edition, for the September quarter of 2025, gives:
| Area | Median weekly rent, new lettings | Annual change in rent index |
|---|---|---|
| Metropolitan Melbourne | AUD 580 | 3.5% |
| Regional Victoria | AUD 470 | 4.6% |
That median is based on all new rental lettings in the quarter, and the report excludes student housing, rooming houses and rooms in shared dwellings. Check the equivalent state figures for the city you are moving to.
Rent against pay (our calculation): Melbourne's median weekly rent is about 28% of average full-time ordinary earnings before tax, and about 58% of a full-time week on the National Minimum Wage.
What people earn
| Measure | Amount |
|---|---|
| Average weekly ordinary time earnings, full-time adults (May 2026) | AUD 2,083.70, up 3.7% in a year |
| Average weekly total earnings, all employees including part-time (May 2026) | AUD 1,579.20, up 2.4% |
| National Minimum Wage, from 1 July 2026 | AUD 26.44 an hour; AUD 1,004.90 a week |
| Unemployment rate (August 2026) | 4.6% |
The National Minimum Wage applies to employees not covered by an award or registered agreement. Most employees are covered by an award for their industry or occupation, and award rates may be higher. Minimum wages are quoted before tax, and are reviewed every year, with most changes starting from the first full pay period on or after 1 July. Juniors, apprentices and trainees have different minimum rates.
Full-time earnings rose 3.7% over the year to May while prices rose 4.0% over the year to August, so on these two figures pay has not quite kept up with prices.
Income tax
| Taxable income, 2026–27 | Tax for Australian residents |
|---|---|
| AUD 0 to 18,200 | Nil |
| AUD 18,201 to 45,000 | 15c for each dollar over 18,200 |
| AUD 45,001 to 135,000 | AUD 4,020 plus 30c for each dollar over 45,000 |
| AUD 135,001 to 190,000 | AUD 31,020 plus 37c for each dollar over 135,000 |
| AUD 190,001 and over | AUD 51,370 plus 45c for each dollar over 190,000 |
These rates apply if you are an Australian resident for tax purposes for the full year and entitled to the full tax-free threshold. They do not include the Medicare levy of 2%. The lowest rate fell from 16c to 15c for 2026–27.
The government's own benchmark for a year's living costs
The Department of Home Affairs sets the minimum living costs a Student visa applicant must show for 12 months: AUD 29,710 for the student, AUD 10,394 for a partner and AUD 4,449 for a child. It is a minimum for the visa, not an estimate of spending. Study Australia, the government's site for international students, says actual living costs vary across Australia and may be much higher than the visa requirement.
How to estimate your own budget
- Start with rent from your state's official rent figures for the area you want.
- Work out take-home pay with the tax table, adding the 2% Medicare levy.
- Add energy and transport. Electricity and automotive fuel each rose more than 13% in a year.
- Check which award covers your job, because your minimum pay is probably set by it.
- If you are on a visa, check whether you can use Medicare or need private health insurance.
For the one-off costs of arriving, see our guides to the cost of moving to Australia and Australia visa fees.
Frequently asked questions
What is the inflation rate in Australia?
The Consumer Price Index rose 4.0% in the 12 months to August 2026, up from 3.5% in the 12 months to July. Trimmed mean inflation, the underlying measure, was 3.6%.
What is the minimum wage in Australia in 2026?
The National Minimum Wage is AUD 26.44 an hour, or AUD 1,004.90 a week, from 1 July 2026. Most employees are covered by an award, which may set a higher minimum for their job.
What is the average salary in Australia?
Average weekly ordinary time earnings for full-time adults were AUD 2,083.70 in May 2026, up 3.7% in a year, according to the ABS. Across all employees, including part-time, average weekly total earnings were AUD 1,579.20.
How much is rent in Melbourne?
The median weekly rent for new lettings in metropolitan Melbourne was AUD 580 in the September quarter of 2025, the latest Victorian government Rental Report. In regional Victoria it was AUD 470.
Are rents still rising in Australia?
Yes, but more slowly than other housing costs. Rental prices rose 3.6% in the 12 months to August 2026, a rate unchanged since May, while the housing group overall rose 5.7%.
How much income tax do you pay in Australia?
For 2026–27, residents pay nothing on the first AUD 18,200, 15c in the dollar from there to AUD 45,000, and 30c in the dollar from there to AUD 135,000, plus the 2% Medicare levy.
Which Australian city has the highest inflation?
Hobart, at 4.8% in the 12 months to August 2026, followed by Adelaide at 4.7%. Melbourne had the lowest of the eight capital cities at 3.5%.
Sources (official only)
- Australian Bureau of Statistics — Consumer Price Index, Australia
- Australian Bureau of Statistics — Average Weekly Earnings, Australia
- Australian Bureau of Statistics — Labour Force, Australia
- Fair Work Ombudsman — Minimum wages
- Australian Taxation Office — Tax rates, Australian resident
- Victorian Department of Families, Fairness and Housing — Rental Report
- Department of Home Affairs — Student visa (subclass 500)
- Study Australia — Living and education costs
All figures verified against the official pages above on 13 October 2026. The ABS updates prices monthly, so check the latest release. Information, not financial advice.