As someone new to Australia or as a newcomer looking to live in Australia short or longer, choosing the right city for your family can be a daunting task. With so many factors to consider, it can be overwhelming to know where to start. We want to keep it simple and will dig deeper to discuss 3 factors only.  We compared the cost of living, salary levels, and liveability index of 8 major Australian cities to help you make an informed decision.   

The Australian government is giving the green light to 195.000 spots in the Permanent Migration Program for the 2023 financial year. This is a 20% increase from the previous year’s 160.000. With the land of Down Under set to welcome an influx of newcomers, it is crucial to choose your new home location wisely to avoid unnecessary hassle and the expense of moving again.  

Let’s take our lovely, fictious Croccolini family of four, moving from Italy, with 2 primary school aged kids. Where do you think they will end up? Have a guess! 

Crunching the numbers. What’s your Cost of Living? 

First things first, let’s take a look at the cost of living in major cities, Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Hobart and Darwin.  

We have considered all the essential expenses you may encounter as a family of four, including rent, utilities, groceries, school fees, subscriptions, health insurance, and transport. Here is what we found: 

City	Monthly expenses / family of 4 (AUD)
Canberra	$8500
Sydney	$8000
Melbourne	$7000
Brisbane	$6000
Adelaide	$5000
Perth	$6000
Hobart	$5000
Darwin	$6000

As you can see, Canberra is the most expensive city to live in, followed closely by Sydney, Melbourne and Brisbane. If you are looking to save money, Adelaide and Hobart are your best options. But what about jobs and career opportunity?  

How much can you earn? A quick guide to understanding salary levels. 

Okay, life is not cheap, but everything is relative, isn’t it? It is worth considering expenses and salaries together to decide where you can maximise your bucks.  

Next, let’s glance at the average salaries in these cities, before tax. We have also included the median salary for each city to give you an idea of what you can expect to earn. If you are wondering what median means, in simple terms; imagine a crowded train where each passenger has a paycheck in their hands.

The median is the one held by the person in the middle of the carriage.  Half of the people to the right are earning more and the other half to the left are pocketing less than the median. In case of Sydney, 50% of the working population are getting more than $78k on their paycheck in a year and 50% of the folks fall below $78k. If you consider average salaries only, it can be misleading as the local Rockefellers who might take home extreme amounts, will distort the average numbers. Hence, it is good to have both the median and average to compare.  

You see? Salaries are generally higher in Sydney, Melbourne, and Perth. However, these cities also have a higher cost of living. Adelaide and Hobart have lower salaries but a lower cost of living, so you need to consider both factors when making your decision. 

If you compare the salary and cost of living ratios, then you get the most for your dollars in Adelaide, followed by Perth.  

From this calculation it is crystal clear that if you have only one person earning money in a family of 4, your annual cost of living is higher than the median salary in every metropolitan city. The solution: you either need a significantly higher salary or both parents working.  

So, what is your guess so far about our wonderful Croccolini family? Which city should they pick? 

Location, location, liveability. Why the index matters when choosing where to settle?  

Finally, let’s check liveability. What is this? It is a broader term in economic sense, to put it simply, it includes factors like family-friendliness, parks, safety, crime rates, educational institutions, healthcare and entertainment. There is a whole bunch of details in this report. Global Liveability Index 2022 Report | Economist Intelligence Unit (eiu.com) 

 

Melbourne, the city that knows how to party, has the highest liveability index. It is closely followed by Brisbane, Perth, Adelaide, and Hobart. Sydney, the big smoke, and Darwin both have a lower score, but it does not mean that you need to cross them out on your list. 

Summary 

Overall, it is clear that there is no one-size-fits-all answer when it comes to choosing the best city to live in as a newbie in Australia. It is important to consider all the factors, create a list of advantages and disadvantages of what is most vital to you and your family. 

If you are looking for a city with a high salary and a high liveability index and family friendly atmosphere, Melbourne could be the best choice for you. If you are considering to save money and have a good quality, although quieter life, then Adelaide and Hobart may be your picks. Hobart was also considered the safest city among all according to a recent survey.  

Brisbane and Perth are great options with high liveability index and lower cost of living than the two largest cities, Sydney, and Melbourne. Brisbane is best for beaches, lifestyle, and climate if you like warm weather all-round the year.  

If you want more vibe, nightlife, entertainment, buzzing creative industries, tech jobs or starting your own business, then Sydney and Melbourne are the best options.  

We live in Sydney, and we love it, despite the “lower” liveability index, you have everything in one place, vibe or quiet, business or quirky communities, high paying jobs, nature, culture, vulture. Everything.  

Where should our Croccolinis go? Well, they selected Melbourne and it is a great choice for this family!  

And what location have you picked to settle?  Why? Let us know! We are interested!  

Nestinsider is here to guide you and help you get ahead of the game. With insider tips and tricks you can figure out how things work before you land, so that you can enjoy all the wonders this amazing country has to offer from day one.