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Australia stands as the world's third preferred study destination with over 600,000 international students attending its universities by 2024.

Students must evaluate the high living expenses in Australia along with its world-class educational opportunities before deciding to study there.

International students in Australia pay annual living costs between ₹12-20 lakhs (AUD 14,500-24,000) which vary according to their city of residence, lifestyle choices and accommodation type.  For students planning to study in Australia, it’s important to understand the daily expenses beyond tuition fees.

In this blog, we will break down the cost of living in Australia for Indian students, covering expenses like accommodation, food, transportation, household bills, and explore whether Australia is affordable or expensive for students in 2025.

The average cost of living in Australia is around ₹9 lakhs - â‚¹16 lakhs (AUD 14,500 - 24,000) per year. This depends on many factors such as accommodation, food, transportation costs and personal spending. This cost changes as per the city you are living in, your spending habits, and if you have a part-time job.

While Sydney and Melbourne rank among Australia's most expensive cities to live in, Adelaide, Canberra, and Gold Coast provide more cost-effective options for housing and everyday expenses. Students save money because public universities charge lower tuition fees than private schools.

Let’s see what an international student typically spends per month in Australia:

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The average cost of living in Australia in 2025 ranges between AUD 1,330 - 2,950 or ₹74,683 - ₹1.6 lakh per month for international students.

This range varies significantly depending on the city you choose, with Sydney and Melbourne being on the higher end and cities like Gold Coast, Adelaide, and Canberra being more affordable.

As an international student, choosing the right city can make a huge impact on your budget. For example, living in Adelaide or Canberra can cost around ₹1.2 - 1.6 lakhs (AUD 1,400 - 2,000) per month to an international student

The cost is mainly because of  place, transport, and general living expenses. Let's check out the monthly cost of living across major Australian cities:

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The cost of living in Sydney and Melbourne ranks them among Australia's expensive cities, and still they are preferred destinations for international students.

Top universities along with good lifestyles and strong job markets make these cities attractive destinations. You must be aware that these features have their own financial cost.

The average cost of living in Sydney is ₹1.5 - 2.2 lakhs (AUD 1,800 - 2,700) per month. And while in Melbourne, it is a little lower at ₹1.4 - 2.1 lakhs (AUD 1,700 - 2,600) per month.  The main cost factor in both cities is place, followed by transport and daily expenses.

So, let's take a look at the monthly living costs in Sydney and Melbourne for international students:

• Higher Rent: Housing costs in Sydney are about 15-20% higher than in Melbourne, and that’s largely driven by demand.

• Transport Costs: Public transport in Sydney seems to be pricier a to s compared to Melbourne’s Myki card system, which actually offers better discounts for students.

• Daily Expenses: Eating out and entertainment options in Sydney tend to be pricier than in Melbourne.

• Job Market & Wages: Sydney has a higher cost of living, but salaries are also higher, especially in sectors like IT, finance, and healthcare.

The Australian Government has set a financial requirement for student visas, which means that international students need to show they have at least ₹16 - ₹18 lakhs (AUD 24,505) each year to cover their living expenses. However, the actual costs can vary quite a bit.

When you're trying to figure out the cost of living in Australia, it's suggested to remember that these expenses aren't set in stone. They can change based on things like where you live, your lifestyle, and how you like to spend your money.

Now, how do they actually come up with these numbers?

Let’s break down the living costs for international students in Australia:

• Accommodation Costs: Rent is usually the major monthly bill for students. The expense can vary depending on whether you’re in PG, a private place, or on-campus. It also depends on the city. For example, Sydney and Melbourne have higher rents, while places like Adelaide and Canberra are generally more cost-friendly.

• Food & Daily Expenses: Grocery expenses are based on supermarket costs, while dining out and entertainment can fluctuate depending on personal choices. Students who whip up meals at home can save a lot compared to those who eat out often.

• Transport Costs: The cost of public transport changes by city and the discounts available for students. For example, Melbourne offers transport concessions, while Sydney seems to have higher fares for those who aren’t locals.

• Utilities & Internet: Electricity bills, water bills, heating, and internet can add to your living costs.

• Health Insurance & Miscellaneous Expenses: All international students in Australia are needed to have Overseas Student Health Cover (OSHC), and this can cost between ₹32,000 and 54,000 (AUD 600 to 1,000) per year.

A general formula for calculating living expenses:

Total Monthly Cost = Accommodation + Food + Transport + Utilities + Healthcare + Miscellaneous Expenses

By breaking it down, students can prioritise essential expenses and adjust their spending accordingly. This can help avoid financial stress and make budgeting for your time in Australia much simpler.

Total Cost of Living in Australia

Now that you know the cost of living in Australia into various categories, let’s add up everything and calculate the total monthly and yearly expenses for an international student.

Although, you must keep in mind that actual costs may be different according to your life, city, and lifestyle. Here’s the average monthly and yearly expenses you might expect:

The cost of living in Australia for Indian students is also affected by the type of university, whether it is a public or private university. The public universities in Australia are funded by the state government or through some subsidies, whereas Private Universities are funded by investors and require tuition fees from students.

Here is a difference between the tuition fees of both types of universities included in the cost of living in Australia for students:

So to plan your average monthly expenses in Australia effectively, some of the crucial parameters include:

Living in Australia as an international student can really be expensive, but with a few simple tweaks to your lifestyle, you can save a good chunk of amount. Whether it’s about where you choose to live or how you manage your daily expenses, smart budgeting can help you keep costs down.

Many students find that by planning ahead and making wise financial decisions, they can balance their studies while keeping their spending in check.

Here are some tips to help you save money:

• Opt for Shared or Off-Campus Accommodation: Rent is without a doubt one of the biggest expenses for international students. By choosing to live in PG or looking at suburbs instead of city centers, you could save anywhere from ₹3 lakhs- ₹6 lakhs (AUD 5,000-10,000) each year.

• Use Student Transport: Public transport in Australia is pretty convenient, and students can wholeheartedly take advantage of discounted travel cards.

• Look for Student Discounts Everywhere: Many brands, restaurants, and entertainment venues offer student discounts. Apps like UNiDAYS and Student Edge are amazing and offer exclusive discounts and can help you save a lot.

• Work Part-Time to Cover Expenses: International students studying in Australia can work up to 20 hours a week. These part time jobs can help you manage daily expenses without affecting your studies.

• Use Affordable Health Insurance & Avoid Unnecessary Medical Costs: While health insurance is important, you can look around for different student insurance plans and find one that suits your budget.

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Studying in Australia is a fantastic opportunity. But hey, we all know, the cost of living can really influence your decision. It’s important to understa