The debate between New Zealand and Australia as to which country provides a cheaper cost of living has been going on for many years. With both countries having their own unique advantages, it can be difficult to determine which nation is more affordable. This article aims to compare the cost of living in both countries, and to examine the factors that make one more expensive than the other.
Cost of Living Comparison
The cost of living in Australia tends to be slightly higher than in New Zealand. The Economist Intelligence Unit (EIU) produces a Worldwide Cost of Living Survey, which analyses the cost of living in various cities around the world, including both Sydney and Auckland. According to the 2018 survey, Sydney is the 15th most expensive city in the world, while Auckland is ranked at 37th. In other words, the cost of living in Sydney is around 40% higher than in Auckland.
Rent and Property Costs
Rent and property prices tend to be significantly higher in Australia than in New Zealand, particularly in major cities such as Sydney and Melbourne. According to the EIU survey, Sydney is one of the most expensive cities in the world for rent, while Auckland is much more affordable. In Sydney, the median rent for a one-bedroom apartment is around $2,100 per month, while in Auckland it is around $1,400.
Property prices in Australia are also significantly higher than in New Zealand. According to the 2018 Demographia International Housing Affordability Survey, the median house price in Sydney is around $842,000, while in Auckland it is around $645,000.
Utility Costs
Utility costs, such as electricity, water, and gas, are generally more expensive in Australia than in New Zealand. According to the EIU survey, electricity costs in Sydney are around 30% higher than in Auckland, while water and gas costs are around 25% higher.
Food Costs
Food costs in Australia tend to be slightly more expensive than in New Zealand. According to the EIU survey, the average cost of a meal in a mid-range restaurant in Sydney is around $40, while in Auckland it is around $30.
Transportation Costs
Transportation costs in Australia tend to be slightly higher than in New Zealand. The cost of public transport in Sydney is around 50% higher than in Auckland. In addition, the cost of petrol in Australia is generally higher than in New Zealand.
Taxes
Taxes in Australia tend to be higher than in New Zealand. Australia has a progressive taxation system, with higher income earners paying more tax than lower income earners. In addition, Australia has a Goods and Services Tax (GST) of 10%, while New Zealand does not have a GST.
Living Wage
The living wage in Australia tends to be slightly higher than in New Zealand. According to the EIU survey, the living wage in Sydney is around $1,500 per month, while in Auckland it is around $1,400.
Inflation
Inflation in Australia tends to be higher than in New Zealand. According to the EIU survey, inflation in Sydney is around 3%, while in Auckland it is around 2%.
Conclusion
Overall, it is generally cheaper to live in New Zealand than in Australia. Rent and property prices tend to be significantly lower in New Zealand, while utility, food, and transportation costs are generally lower as well. In addition, taxes and the living wage are lower in New Zealand, while inflation is also lower.
For those looking for a more affordable cost of living, New Zealand is the clear winner. However, both countries have their own unique advantages, and it is ultimately up to the individual to decide which one is best for them.
Keywords: cost of living, rent, property prices, utility costs, food costs, transportation costs, taxes, living wage, inflation, New Zealand, Australia.