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Melbourne Cost Of Living 2023: Monthly Household Expenses Breakdown

October 29, 2024
10
Minutes

Cost of living in Melbourne

Breakdown

Category1 Person Household2 Person Household4 Person HouseholdElectricity & gas$133$160$181Water$60$69$99Internet$75$75$75Groceries$451$624$880Total$719$928$1235

+ housing + travel costs

Melbourne regularly tops the Global Liveability Rankings as the world’s most livable city, and for good reason. Known as the cultural, music, and (most importantly) coffee capital of Australia, Melbourne is certainly an exciting place to live.

If you’re thinking of moving to Melbourne (or if you just want to know how you stack up against other Melbournian households) then this is the blog for you. In this blog, BeMoved breaks down the average cost of living by individual expenses by household size, including average expenditure on housing, utilities and household expenses.

How expensive is it to live in Melbourne?

Traditionally, if you’re looking to live in or near the CBD, you can expect a steep increase in your housing expense. Melbourne is one of Australia’s most expensive cities for renting and home buying, second only to Sydney. It’s no secret that the housing market in Victoria has been volatile in 2023, renters have been reporting steep payment increases and buyers are struggling with continuous interest rate rises.

Nevertheless, people have to move when they have to move. With that in mind, do plenty of research on the housing available in the area you’re looking at. Housing is typically the highest monthly expense for most households, and also the most difficult expense to decrease, so it’s worth taking the time to exhaust your options while house hunting.

In January of 2023, PropTrack’s Market Insight report found that weekly rent for dwellings across Melbourne rose 2.3 per cent to $450 per week. (totalling a 9.8 percent increase since the start of 2022). A more recent survey from PropTrack found that the median house rent in Melbourne increased once again to $480 per week.

According to PropTrack director of economic research Cameron Kusher, “We expect rental prices will continue to grow in the capital cities over the coming months, while the prospects for further rental price growth regionally appear to be easing,” per mozo.com.au.

Keep in mind that these median figures consider a spectrum of dwellings, from large-capacity, single-family households to single-bedroom apartments. So your experience of prices may differ according to your needs.

Need to connect, transfer, or check the best plan for your utilities?

Utilities

To make an informed decision about which utilities to choose for your household, there are three key factors to consider. Firstly, you'll need to choose which providers to go with. Secondly, the number of people living in your household will impact your utility bills. While bills will increase incrementally with each additional person, utilities will cost less per person if more people are living under the same roof. This is important to consider when deciding whether to live alone or in shared accommodation.

Lastly, the facilities your house includes will also affect your utility costs. For example, having an electric hot water system, heated outdoor pool, or ducted heating will result in higher bills. It's also important to note that certain utilities, like water and gas, are billed quarterly rather than monthly.

For the purposes of this post, we've broken down the expenses into monthly figures to make it easier for you to compare costs.

Electricity & Gas

Due to certain pieces of legislation, the makeup of the power industry and myriad other economic factors in the state, Victoria is one of Australia's cheapest places in terms of household power expenses.

According to BeMoved's analysis of flat-rate electricity offers from a sample panel of Victorian providers (including providers not offered by BeMoved), the average yearly electricity cost for households was:

  • Single-person household: $855 per year
  • Two-person household: $1173 per year
  • Four-person household: $1425 per year

Which would break down monthly to:

  • Single-person household: $71 per month
  • Two-person household: $98 per month
  • Four-person household: $119 per month

*Keep in mind that monthly/quarterly electricity bills will fluctuate throughout the year.

Gas usage typically varies less across household sizes when compared to electricity. At the start of 2023 Victorian households reported their average quarterly gas bill to be $186, which breaks down to a monthly expense of $62. However, BeMoved’s analysis of current Victorian gas offers found an average expected cost of $102 per month. Maintaining a conservative approach, we’ll use the more expensive figure to budget against.

Also remember that if you’re a Victorian resident, you have access to the state government’s $250 Power Saving Bonus rebate. All you have to do is submit a digital copy of an existing power bill, and you’ll get the compensatory funds transferred to your elected account.

Water

According to a survey performed in January 2023, Victorians across all household sizes reported an average quarterly water bill of $191, which works out to a monthly expense of $64. In Melbourne, a single-person household can expect to spend about $60 per month on water, two-person households about $69 per month, and four-person households around $99 per month.

Home Internet

Connecting to the internet in Australia is generally via the National Broadband Network (NBN) run by the federal government. There are different pricing tiers offered by internet service providers for access to different speeds, most households end up paying similar amounts.

Assuming you want to connect to an NBN50/20 speed pack, which offers average evening download speeds of 50 Mbps and upload speeds of 20 Mbps with an unlimited data cap, you can expect to pay between $70 and $95 per month. It is possible to pay more for faster speeds, but an NBN50/20 connection should provide sufficient bandwidth for a four-person household with multiple devices connected to the internet.

Unlimited data caps are fairly common now for NBN home internet, although some providers still offer plans with data limits of 200GB or 500GB at a lower price.

Unfortunately, the quality of your home connection will be somewhat tied to the equipment your home is fitted with - fiber to the premises (FTTP), fiber to the curb (FTTC) or fiber to the node (FTTN). If you ultimately choose not to use the NBN and instead opt for a wireless or satellite connection, which may be necessary if you live in a rural area, you should expect to pay slightly more. For example, 4G or 5G home internet plans from Optus or Telstra can cost between $70 and $100 per month for an average high-speed connection.

Groceries

While there may be some regional differences in grocery prices in Australia, the biggest factor affecting your grocery bill is the size of your household and your lifestyle. According to a survey from May 2023, the average single-person household in Australia spends about $104 per week on groceries, while two-person households spend around $144 per week and four-person households around $203 per week. This works out monthly to:

  • Single-person household: $451 per month
  • Two-person household: $624 per month
  • Four-person household: $880 per month

Travel

If you have options other than driving, reducing travel expenses can be a relatively easy way to save money. According to Budget Direct, transport costs can consume up to 13.8% of an average Australian household's annual income. If you live in Melbourne, owning a car can be particularly expensive due to additional costs such as insurance, registration, roadside assistance, and maintenance.

The average price of petrol in Melbourne was $1.69 per litre between January and April 2023. However, if you live in a rural area of Victoria, you may be able to spend less on fuel.

If you're moving to or already live in a more urban area with public transportation options such as trains, trams, and buses, choosing to use public transport can significantly reduce your commuting expenses. The average Australian public transport commuter spends about $105 per month on travel passes. In Melbourne, you do have the option to purchase Myki passes for seven days or even a year, with prices varying depending on the zones you'll be using. For example, a Zone 1 + 2 year-long Myki pass costs $861.25, which breaks down to just $72 per month.

The Full Breakdown

The following is a detailed breakdown of utility and grocery expenses in Melbourne, categorised by household size. It is important to keep in mind that in order to determine your overall budget, you will also need to account for your other expenses such as housing, travel, recreation, entertainment, education, fitness etc.

Category

1 Person Household

2 Person Household

4 Person Household

Electricity & gas

$133

$160

$181

Water

$60

$69

$99

Internet

$75

$75

$75

Groceries

$451

$624

$880

Total

$719

$928

$1235

+ housing + travel costs

If you're looking to move, be sure to connect with BeMoved.

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FAQs

Moving can be daunting, but we can help you tick a few tasks off your list.

Check out our helpful list of Frequently Asked Questions, or get in touch via livechat if you need additional assistance.

Do I need to be at the new address to get connected?

In most cases, no, no one will need to be at the home when the connection is turned on. You'll likely have to make sure the electricity supply is switched off on the main switchboard, though. The provider will give you instructions once your application is submitted.

What does it cost to connect my energy and gas?

There is no cost to use the BeMoved service to connect your electricity or gas. Costs for the plans you choose will vary depending on the provider and plan you choose, and these costs are shown on the plans page.

Where do I find my main switch?

Your main switch is located in your fuse or meter box. Depending on your property, your meter box could be:

  • on an outside wall
  • in your garage
  • in your hallway
  • in a kitchen cupboard In your meter box there'll be a number of switches.

Look for the one that has the "main switch" label. Some properties also have a hot water switch - if yours does, you'll need to look for that one too. Flick the main switch (and hot water switch if you have one) to the off position (this might be shown as an | for on and O for off) to allow your electricity connection to take place. Once your power company has confirmed your electricity is connected, switch the main switch and hot water switch back on.

I've been approved for a rental property. How do I connect electricity?

The process for a rental property is the same as other properties. Simply go through the connection flow, choosing the address, connection date, energy provider and plan, and provide a few personal details. From there, we'll get your connection sorted!

What's a smart meter and how do I know if I have one?

A "Smart Meter", or digital meter, records your energy consumption every 30 minutes and sends usage data to your retailer. This means you get more timely and accurate bills, and can receive bills monthly.

Unlike smart meters, "Basic Meters" measure your usage from one point in time to another and are read by a meter reader every 3 months.

Smart meters generally have a digital face with numbers or digits that represent your current read data and electricity consumption. Basic or analogue meters generally have a dial that spins around, recording your consumption in kWh.

How soon can gas be connected?

Natural gas connections can take 2-3 business days, so make sure to submit your order ASAP if you need gas services connected.

How do I track my order?

Once you've submitted your order, you'll receive an SMS and Email with details of how to keep track of your order.

Can I complete my connection online?

Absolutely! That's the benefit of using the BeMoved service. In just a few minutes, and without any annoying phone calls or sitting on hold, we can get your connection sorted and tick that task off your list.

What energy providers does BeMoved partner with?

We partner with Australia's top-tier providers, including EnergyAustralia, Origin and AGL.

Why do I need to provide personal details?

Your personal information is required to pre-fill your utility connection application. We will ask for your full name, mobile phone number and email address. Once you have chosen your provider and plan, you'll also be asked for your ID details, date of birth and address. These are required by the energy companies to process your application.

We do not disclose or sell your personal information to anyone, and collecting these details is for the sole purpose of arranging and facilitating your utility connection (as per the Australian Privacy Principles under the Privacy Act 1988). BeMoved Privacy Policy.