--- title: "Cost of living in Australia: what households spent in 202..." description: "Australian households spent an estimated $1.18 trillion on essentials and discretionary categories in 2025, up sharply from prior years amid persistent inflatio" lang: en-AU json-ld: | { "@context": "https://schema.org", "@type": "Article", "headline": "Cost of living in Australia: what households spent in 2025", "description": "Australian households spent an estimated $1.18 trillion on essentials and discretionary categories in 2025, up sharply from prior years amid persistent inflation in housing, food, transport and insurance.", "image": [ "https://images.unsplash.com/photo-1556742502-ec7c0e9f34b1?auto=format&fit=crop&w=1600&q=80" ], "datePublished": "2026-05-18T00:00:00+00:00", "dateModified": "2026-07-02T05:03:48.474514+00:00", "author": { "@type": "Organization", "name": "CheckRate" }, "publisher": { "@type": "Organization", "name": "CheckRate" }, "mainEntityOfPage": { "@type": "WebPage", "@id": "https://checkrate.com.au/cost-of-living" } } --- [CheckRate ](/) [Library](/articles) Back Spending # Cost of living in Australia: what households spent in 2025 Australian households spent an estimated $1.18 trillion on essentials and discretionary categories in 2025, up sharply from prior years amid persistent inflation in housing, food, transport and insurance. 12 min read 18 May 2026 Updated 02 July 2026 Fact checked In this article 1. [A decade of rising household costs](#a-decade-of-rising-household-costs) 2. [When do Australians spend the most?](#when-do-australians-spend-the-most) 3. [What do Australians spend their money on?](#what-do-australians-spend-their-money-on) 4. [Household spending by state: where costs are rising fastest](#household-spending-by-state-where-costs-are-rising-fastest) 5. [How much does one household actually spend?](#how-much-does-one-household-actually-spend) 6. [Cost of living by household type](#cost-of-living-by-household-type) Key findings · 2025 $923B Total tracked spending in 2025, up from **$606B** in 2016 +52% Rise in tracked expenditure since 2016, with **+19.8%** in 2022 alone $2,856 Estimated weekly spend per household in 2025, up from **$1,956** in 2016 $86.2B December 2025: the **highest single month** on record Section 01 National spending ## A decade of rising household costs Australian households spent a combined **$923 billion** across tracked consumer categories in 2025, up **52%** from $606 billion in 2016. When housing costs are included, the average household is estimated to need around $12,376 per month to maintain its standard of living. The ABS Monthly Household Spending Indicator tracks nine categories: food, health, transport, recreation, hospitality, clothing, furnishings, alcohol and tobacco, and miscellaneous goods. Mortgage repayments and rent are not included, so these figures only show part of total household spending. Total tracked spending · 2025 $923B ↑ Up $316.7B since 2016 Across nine ABS COICOP categories Sharpest single-year rise +19.8% 2021 → 2022 $661B to $793B in twelve months Only year spending fell 2020 ↓ −5.0% on 2019 April 2020 hit all-time low Total tracked household expenditure, Australia Annual figures, 2016–2025 · AUD billions 2016 Covers nine COICOP divisions tracked by the ABS Monthly Household Spending Indicator. Housing and mortgage costs are not captured in this measure. The shaded band marks the COVID and post-lockdown period (2020–2022). The sharp 2022 rise reflects pent-up consumer demand colliding with constrained global supply chains and energy price shocks at the same time. **Source:** ABS Monthly Household Spending Indicator, annual aggregates. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Between 2016 and 2019, spending rose steadily, increasing by 9% over four years of contained inflation. The pandemic interrupted that pattern. In 2020, total tracked expenditure fell to $627.6 billion, the only annual decline in the dataset. The lowest month on record was April 2020, when Australians spent just $39.8 billion nationally as lockdowns closed large parts of hospitality, retail and transport almost overnight. APR 2020 The pandemic low April 2020 recorded the lowest monthly household spending in the dataset, at $39.8 billion. Hotels, cafes and restaurants fell sharply from their usual 10% share of spending, while transport, clothing and recreation also dropped. Only food and health spending held firm. 2022 SURGE The post-lockdown spending jump In 2022, total tracked expenditure rose from $661.4 billion to $792.5 billion, an increase of almost $131 billion in twelve months. It was the sharpest annual rise in the dataset, driven by pent-up demand, strained supply chains and higher fuel costs. ## When do Australians spend the most? Seasonal patterns are a consistent feature of Australian household spending. In 2025, monthly totals climbed from a February low of **$68.4 billion** to a December high of **$86.2 billion**, a swing of $17.8 billion within a single calendar year. That December figure was **5.2% higher than** December 2024 and the highest month recorded in the dataset. December spending consistently runs 15–20% above the February trough, driven by Christmas retail, summer hospitality and school-year preparation. February is usually lower because it has fewer days and follows the holiday spending period. This seasonal pattern holds across every year in the dataset. Monthly household spending, 2025 AUD billions · January to December 2025 Jan **Source:** ABS Monthly Household Spending Indicator. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 02 What the money goes on ## What do Australians spend their money on? Transport is the single largest tracked category at **$157.3 billion** in 2025, up from $101.9 billion in 2016. Recreation and culture ($152.6 billion) and food ($143.2 billion) follow closely, with those three categories together accounting for nearly half of all tracked national expenditure. Health spending was among the fastest-growing categories, rising 73% from $62.7 billion in 2016 to $108.7 billion in 2025. Hotels, cafes and restaurants rose by 75%, from $72.8 billion to $127.3 billion, reflecting both higher spending on eating out and rising service-sector costs after the pandemic. "Health and hospitality, not food or transport, recorded the fastest spending growth of any tracked category since 2016, each rising by nearly 75%." Spending by category, 2025 AUD billions · nine COICOP divisions Transport Navy bars (hotels/cafes and health) highlight the two fastest-growing categories since 2016. The muted bar at right (alcohol and tobacco) is the only category to fall in nominal terms over the decade, largely due to the growth of the illicit tobacco market. **Source:** ABS Monthly Household Spending Indicator, 2025 annual aggregates. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Did you know Alcohol and tobacco is the only tracked category that fell in nominal terms since 2016, dropping from $36.4 billion to $35.4 billion, a decline of 2.8%. This does not necessarily mean Australians consumed less. Researchers have linked the decline partly to a shift towards the illicit tobacco market, as repeated excise increases pushed some spending outside the measurable economy. ### Category data: 2016 vs 2025 Highlighted rows show the fastest-growing categories and the only category to decline. Tracked household spending by category · AUD billions Category 2016 ($B) 2025 ($B) Change National share Hotels, cafes and restaurants 72.8 127.3 +74.9% 13.8% Health 62.7 108.7 +73.3% 11.8% Food 92.6 143.2 +54.7% 15.5% Transport 101.9 157.3 +54.3% 17.0% Recreation and culture 100.5 152.6 +51.8% 16.5% Clothing and footwear 35.3 51.7 +46.5% 5.6% Miscellaneous goods and services 58.3 83.1 +42.5% 9.0% Furnishings and household equipment 45.6 63.9 +40.0% 6.9% Alcohol and tobacco 36.4 35.4 −2.8% 3.8% **Total (tracked categories)** 606.3 923.0 +52.2% 100% Housing and mortgage costs are not included in any tracked category above. **Source:** ABS Monthly Household Spending Indicator. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 03 State by state ## Household spending by state: where costs are rising fastest New South Wales accounts for the largest share of national tracked expenditure at **$292.1 billion** in 2025, representing **31.6%** of the national total. Victoria follows at $224.9 billion and Queensland at $190.7 billion. These figures largely reflect population size, with NSW and Victoria home to the largest shares of Australia's population. Total tracked household expenditure by state, 2025 AUD billions · annual totals NSW $292.1B VIC $224.9B QLD $190.7B WA $106.5B SA $62.5B TAS $19.3B ACT $17.0B NT $10.1B **Source:** ABS Monthly Household Spending Indicator, 2025 annual aggregates. Growth rates since 2016 show a different pattern. Western Australia (+65.1%) and Queensland (+63.0%) both grew well above the national average of 52.2%. NSW (+43.9%) and Victoria (+47.7%) recorded slower growth despite their larger spending bases. Queensland's faster growth closely tracks strong interstate migration, which has tightened housing availability and increased service costs across south-east Queensland. Queensland · Growth since 2016 +63% QLD spending rose from $117.0B in 2016 to $190.7B in 2025, driven by interstate migration and surging residential demand. Western Australia · Growth since 2016 +65% WA spending rose from $64.5B to $106.5B, the fastest growth of any state, underpinned by a high-wage resources sector. Brisbane has closed the gap with Melbourne on living costs Inner-city one-bedroom apartments in Brisbane averaged $2,457 per month in 2025, compared with $2,245 in Melbourne. Brisbane also had a lower average net monthly salary, at $5,929 compared with $6,360 in Melbourne. Together, this means a Melbourne resident's purchasing power is estimated to be roughly 8% higher than a Brisbane resident's, challenging the traditional view of Queensland as the more affordable option. ### State and territory data: 2016 vs 2025 Green rows indicate states with above-average growth since 2016. Tracked spending by state and territory · AUD billions State / Territory 2016 ($B) 2025 ($B) Growth National share (2025) NSW 203.1 292.1 +43.9% 31.6% VIC 152.3 224.9 +47.7% 24.4% QLD 117.0 190.7 +63.0% 20.7% WA 64.5 106.5 +65.1% 11.5% SA 39.3 62.5 +59.0% 6.8% TAS 12.3 19.3 +57.3% 2.1% ACT 11.2 17.0 +51.6% 1.8% NT 6.7 10.1 +51.1% 1.1% **Australia total** 606.3 923.0 +52.2% 100% ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 04 Per household spending ## How much does one household actually spend? Behind the national total of $923 billion is a more personal figure: the amount flowing out of a single Australian household each week. In 2025, that is estimated at **$2,856** per week, or **$12,376** per month. This includes housing, utilities and other living expenses. A decade ago, the equivalent figure was **$1,956 per week**. That is a 46% rise in nominal terms over nine years. Weekly spend per household · 2025 $2,856 ↑ Up from $1,956 in 2016 Comprehensive estimate including housing Monthly spend per household · 2025 $12,376 +46% since 2016 Average across all Australian households Annual spend per household · 2025 $148,493 Up from ~$101,732 in 2016 Based on ABS National Accounts modelling Of the $2,856 weekly total, housing alone accounts for **$634**, making it the largest household expense and more than twice the discretionary spend on recreation and culture (**$292**). Household spending broadly falls into three groups. Essential non-discretionary costs, including housing, food, health, utilities, insurance and education, account for around **$1,509 per week**, or **52.8%** of total spending. Transport makes up **$298 per week** (**10.4%**), while discretionary spending accounts for **$1,049 per week** (**36.8%**). Essential costs per week $1,509 52.8% of total Housing, food, health, utilities, insurance, education Transport costs per week $298 10.4% of total Vehicle running, public transport, vehicle purchase Discretionary spend per week $1,049 36.8% of total Recreation, dining out, clothing, communications, alcohol Housing is the largest item in the household budget At $634 per week, rent and dwelling services cost more than twice what households spend on recreation and culture ($292), the next biggest single category. No other individual line item comes close. For households with a mortgage, monthly repayments averaged approximately $3,713 in 2025, or around $857 per week, making the housing burden even heavier for those managing principal and interest. ### Full weekly cost breakdown per household Estimated household spending by category, weekly · AUD · 2025 national averages Category Type Weekly Monthly Annual Share of total Rent and dwelling services Essential $634 $2,747 $32,968 22.2% Recreation and culture Discretionary $292 $1,265 $15,184 10.2% Food Essential $272 $1,178 $14,144 9.5% Hotels, cafes and restaurants Discretionary $244 $1,057 $12,688 8.5% Insurance and financial services Essential $227 $983 $11,804 7.9% Health Essential $210 $909 $10,920 7.4% Other goods and services Discretionary $162 $702 $8,424 5.7% Operation of vehicles Transport $127 $550 $6,604 4.4% Furnishings and equipment Discretionary $120 $520 $6,240 4.2% Clothing and footwear Discretionary $102 $442 $5,304 3.6% Education services Essential $101 $437 $5,252 3.5% Transport services Transport $98 $424 $5,096 3.4% Purchase of vehicles Transport $73 $316 $3,796 2.6% Electricity, gas and fuel Essential $65 $282 $3,380 2.3% Alcoholic beverages Discretionary $52 $225 $2,704 1.8% Communications Discretionary $52 $225 $2,704 1.8% Cigarettes and tobacco Discretionary $25 $108 $1,300 0.9% **Total** — $2,856 $12,376 $148,493 100% Weekly figures based on ABS National Accounts data and 2025 national cost-of-living averages. Monthly = weekly × 52 / 12. Annual = weekly × 52. Essential includes housing, food, health, insurance and financial services, utilities and education. Transport includes all vehicle-related and public transport spending. Discretionary covers everything else. **Source:** ABS National Accounts; 2025 cost-of-living research. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) ### Per-household weekly spend by state Weekly household costs vary widely across Australia. The Northern Territory is the most expensive, partly because geographic isolation pushes up freight and living costs. Western Australia also sits above the national average, supported by higher wages in the resources sector. Tasmania is the lowest, reflecting lower median wages, an older population and lower property values. Northern Territory $3,705/wk Highest nationally. Freight isolation premium and transient high-wage workforce push all costs up. Western Australia $3,055/wk Second highest. Resources sector wages sustain elevated consumer prices; highest health spend nationally. National average $2,856/wk Up from $1,956/week in 2016, a 46% increase in nominal terms over nine years. Tasmania $2,295/wk Lowest nationally. Reflects older demographics, lower median wages and lower property valuations. NT and WA figures from 2025 cost-of-living research. TAS and national are ABS estimates. Section 05 By household type ## Cost of living by household type The national average of $2,856 per week masks very different financial realities depending on household size, income and life stage. A single student in inner-city Sydney will face very different costs from a couple nearing retirement in regional Tasmania, even within the same national economy. ### Singles For a single person, monthly living costs are estimated between **$2,500 and $3,500** nationally, though that range is heavily skewed by location. In inner-city Sydney, total monthly expenses, including rent, can exceed **$6,000**, driven by an average one-bedroom rental of around $3,771 per month. Excluding rent, a single Sydneysider's everyday costs average approximately $1,984 per month. Singles · national monthly range $2,500–3,500 Varies significantly by city, suburb and housing arrangement Single in inner-city Sydney $6,000+ Including average 1-bed inner-city rent of $3,771/month Ex-rent costs · Sydney single $1,984 Average everyday expenses per month, excluding rent $236/wk Students living away from home are 43% below the poverty line Government Youth Allowance provides approximately $236 per week, placing students who rely entirely on it 43.2% below the national poverty line. Most take on secondary employment to cover rent and basic food costs, a pressure unlikely to ease without rental or income support reform. ### Couples without children Sharing income and expenses changes the cost calculation. For a working-age couple without children, monthly living costs typically fall between **$3,500 and $5,500**. Splitting housing costs provides a buffer that single-person households do not have. A couple sharing a $2,500 monthly rental effectively halves that cost per person. The gender savings gap widens sharply with age Savings data shows men aged 30–49 have average savings of $27,005, compared with $24,081 for women in the same age group. That gap increases in the 50-64 bracket: men average $106,236; women average just $22,759. Superannuation gaps, interrupted workforce participation and lower part-time earnings compound over time, with the greatest impact felt at retirement. ### Families with children A family of four typically requires between **$5,000 and $7,000 per month** nationally, rising to **$7,500 to $8,000** in major metropolitan areas. The marginal cost of children is substantial and largely unavoidable. First child: annual cost $17,000 Estimated annual cost to a typical working couple for their first child Each additional child $13,000 Marginal annual cost per additional child on median household income Full-time kinder · Sydney $3,624/mo Before government subsidies, five days per week, one child Public school annual levies $500–1,200 Per child per year including uniforms, activity fees and mandatory levies Even within nominally free public schooling, families face unavoidable annual costs of between $500 and $1,200 per child. These essential costs leave families with less room for discretionary spending. Families may cut back on domestic travel, dining and entertainment to manage fixed child-rearing costs. ### Retirement The Association of Superannuation Funds of Australia (ASFA) publishes quarterly benchmarks for retirement living standards. In the December 2025 quarter, a comfortable retirement required near-ideal conditions: good health, an owned home, and a substantial superannuation balance at drawdown. **Weekly cost of modest and comfortable retirement living standards** ASFA Retirement Standard · December Quarter 2025 · estimated weekly expenditure Category Couple comfortable Couple modest Single comfortable Single modest Housing (rates, insurance, repairs) $161.25 $148.45 $154.42 $131.38 Electricity and gas $62.88 $53.75 $50.70 $40.02 Food and groceries $263.41 $217.31 $151.55 $117.22 Household goods and services $101.64 $48.11 $80.19 $40.76 Clothing and footwear $53.59 $40.94 $28.78 $21.54 Transport (car and public) $189.88 $117.30 — $110.28 Health (insurance, chemist, co-payments) $225.46 $114.86 $120.29 $59.28 Leisure (dining, holidays, media) $360.21 $196.49 $238.79 $126.78 **Total weekly** $1,482 $983 $1,051 $680 **Annual equivalent** $77,375 $51,299 $54,792 $35,360 All figures assume outright homeownership and reasonable health. Rows show selected major ASFA categories; totals reflect the full ASFA standard. Super required at retirement: ~$730,000 (couple, comfortable) and ~$630,000 (single, comfortable). **Source:** ASFA Retirement Standard, December Quarter 2025. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) $1,300/wk The renting retiree penalty Modest retiree couples who rent privately need about $1,300 per week, or $67,639 per year, compared with $983 per week, or $51,299 per year, for homeowner couples on the same ASFA modest standard. The $314 weekly gap reflects the extra burden of private rent. Australia's retirement system is still largely built around outright homeownership. General information only This article is based on publicly available data from the ABS, ASFA, the ATO and state revenue offices. It is general information only and does not constitute financial advice. If you are making decisions about your household budget, superannuation or retirement planning, consider speaking with a licensed financial adviser or the relevant agency directly. References 1. [ABS Monthly Household Spending Indicator](https://www.abs.gov.au/statistics/economy/finance/monthly-household-spending-indicator/latest-release): aggregate household expenditure across nine COICOP divisions, 2016–2025 annual totals. Housing and mortgage costs not captured. 2. [ABS National Accounts](https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release): per-household weekly and monthly expenditure estimates; 2016 baseline figures from ABS 2016 Household Expenditure Survey. 3. [ABS Lending Indicators](https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release): state-by-state expenditure totals, 2016 and 2025 annual aggregates used for growth rate comparisons. 4. [ASFA Retirement Standard, December Quarter 2025](https://www.superannuation.asn.au/resources/retirement-standard): weekly expenditure benchmarks for comfortable and modest retirement; couple and single scenarios. Superannuation lump-sum estimates assume partial Age Pension eligibility. 5. [ABS Household Income and Wealth, Australia 2024](https://www.abs.gov.au/statistics/economy/finance/household-income-and-wealth-australia/latest-release): gender savings gap data; average savings by age group and sex. 6. [ABS National, State and Territory Population](https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/latest-release): population data used for per-household expenditure modelling by state and territory. 7. [AMP Financial Services](https://www.amp.com.au/): cost of raising children: annual cost estimates for first and subsequent children on median household income. 8. [Reserve Bank of Australia: housing lending data](https://www.rba.gov.au/statistics/interest-rates/): average mortgage repayment estimates for owner-occupier households, 2025. ## Data Snapshots ![total tracked household expenditure australia](/snapshots/cost-of-living/total-tracked-household-expenditure-australia.jpg) Total tracked household expenditure, Australia · 2016–2025 (AUD billions). ![2025 monthly household spending australia](/snapshots/cost-of-living/2025-monthly-household-spending-australia.jpg) Monthly household spending, 2025 · January to December (AUD billions). ## Related research [ ![How much have insurance premiums increased in Australia?](https://images.unsplash.com/photo-1637763723578-79a4ca9225f7?q=80&w=871&auto=format&fit=crop&ixlib=rb-4.1.0&ixid=M3wxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8fA%3D%3D) Spending 20 July 2026 · 11 min read ### How much have insurance premiums increased in Australia? 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