Living in Melbourne comes with a price tag. Some costs are fair. Some feel high. Some you can control. If you’re moving here or just trying to plan your budget, you need real numbers not guesses. This is a straight-up breakdown of the cost of living in Melbourne.
Rent and Housing
Let’s start with the big one: rent. If you’re living alone and want to be near the city, you’re looking at about $2,400 a month for a one-bedroom apartment in the CBD. Go further out and you’ll pay less. In the outer suburbs, the same place can cost closer to $1,500.
Houses? They vary a lot. A three-bedroom house in a middle-ring suburb might cost $600 to $750 a week. If you’re after something cheaper, look further out. But keep in mind, longer commutes can mean higher transport costs. It all adds up. You can explore more about the best suburbs to live in Melbourne to find a location that suits both your budget and lifestyle.
This is where the price of living in Melbourne starts to stretch people. Rent eats a big chunk of most budgets.
Utilities: Power, Gas, Water
Electricity in Melbourne isn’t cheap. The average electricity bill in Melbourne sits around $450 a quarter. That’s about $150 a month, give or take. Add in gas and water, and you’re looking at $220 to $250 a month in total for utilities if you live in a standard two-bedroom place.
A lot of people don’t check energy rates. That’s where CheapBills comes in. We help you compare electricity rates in Melbourne, gas, and internet plans in one spot from our panel of providers. Same energy bills and less costs. Whether you’re renting in Fitzroy North or Ferntree Gully, power costs in Melbourne shouldn’t catch you off guard.
Food and Groceries
Groceries aren’t cheap, but you can still keep it under control. A solo person can expect to spend around $120 to $150 a week on food. That’s about $500 to $600 a month. Shopping at markets instead of major chains can shave some dollars off.
Eating out is a different story. A casual meal is about $20. Dinner at a mid-range restaurant? Closer to $40–$50 per person. If you eat out a lot, expect your living expenses in Melbourne to rise fast.
Internet and Phone
Internet will run you about $60 to $80 a month for a decent NBN plan. Mobile plans range from $20 for a budget prepaid to $60 or more for unlimited data. Again, this is something you can shop around for. CheapBills can help with that too.
Public Transport
Melbourne’s public transport covers most of the city and runs often. A full fare Myki pass for Zone 1+2 is $167.90 a month. If you’re working in the city or going to uni, this is probably what you’ll need.
If you’re driving, petrol costs can swing between $1.70 and $2.10 per litre. Parking in the city is expensive — daily rates can go over $30. If you’re commuting by car, your life cost in Melbourne will likely be higher.
Healthcare
Medicare covers most things, but it doesn’t cover everything. Some people go for private health insurance. Basic hospital cover starts at around $100 a month. Dental, physio, and extras cost more.
If you don’t have insurance, a standard GP visit is about $80. Some bulk bill, but not all.
School and Childcare
Public schools are technically free, but parents still pay fees. Expect $1,000 to $2,000 a year per child. Private schools range from $10,000 to $35,000 a year. Add uniforms, books, excursions — it builds up.
Childcare costs are steep. Without subsidies, full-time care can cost $100 to $150 a day.
If you’ve got kids, living expenses in Melbourne Australia start looking a lot bigger.
Entertainment and Everyday Stuff
Movies cost around $20. A beer at a pub will run you $10. A haircut might be $40–$60 depending on where you go.
Gym memberships range from $15 to $60 a week. Streaming services add another $15–$30 a month. It’s easy to forget about these smaller costs, but they all sit quietly in the background of your monthly spend.
Average Monthly Budget in Melbourne (Single Person)
Let’s say you’re living alone in a one-bedroom flat outside the city:
- Rent: $1,600
- Utilities (power, gas, water): $230
- Internet and phone: $90
- Groceries: $550
- Public transport: $170
- Healthcare: $100
- Everyday costs (eating out, gym, etc.): $400
- Total: Roughly $3,140 per month
Change suburbs, add kids, drive instead of taking the tram and your numbers shift fast. That’s why it’s not just about income, but also how you manage bills and extras.
Cost of Living in Australia: Melbourne vs Other Cities
Compared to other major cities in Australia, the cost of living in Australia Melbourne ranks high, but it’s not the worst. Sydney is often more expensive when it comes to housing. Brisbane and Adelaide are usually cheaper overall. But Melbourne sits in the middle with a good mix of access and lifestyle.
Cutting Costs in Melbourne
The cost of living in Melbourne can feel heavy if you’re not paying attention. Rent takes the most. Power comes next. Food and transport round it out.
But you can control some of it. Compare your utility plans. Don’t overspend on power when better options are out there. CheapBills is here to help you compare utility rates and sort the essentials: electricity, gas, internet so you’re not stuck overpaying.
Whether you’re living close to the CBD or out near the hills, bills are part of life. But big costs don’t have to mean bad choices.
Know where your money’s going. Start with what you can change. Then live how you want.
