Sydney vs Melbourne — Cost of Living
Rent, overall costs and the equivalent salary you'd need to keep your lifestyle.
| Sydney | Melbourne | |
|---|---|---|
| Overall cost index | 86 | 76 |
| Rent index | 86 | 70 |
| 1-bed city-centre rent | $2,900 | $2,200 |
A $95,000 lifestyle in Sydney needs about
$83,953
in Melbourne (cost-of-living parity, before tax)
Sydney
Australia's most expensive city, driven by housing.
Melbourne
Big-city wages at lower rents than Sydney.
Remember that cost of living is only half the story — tax differs too. Check take-home pay with the Australia calculator and Australia calculator, or use the interactive comparator.
Frequently Asked Questions
+Is Melbourne cheaper than Sydney?
Melbourne has an overall cost-of-living index of 76 versus Sydney's 86, so it is cheaper by roughly 12%, driven largely by rent.
+What salary do I need in Melbourne to match Sydney?
To maintain a $95,000 lifestyle from Sydney, you'd need roughly $83,953 in Melbourne, based on cost-of-living parity (before tax differences).
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources (last reviewed June 2026). Always confirm with an official tax authority or a licensed adviser before making decisions.