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/year lifestyle in Sydney needs about
$83,953 / year
in Melbourne (cost-of-living parity, before tax)
Sydney
Set against Melbourne, Sydney carries an overall index of 86 and a rent index of 86: australia's most expensive city, driven by housing.
Melbourne
Melbourne scores 76 overall and 70 on rent against Sydney’s 86: big-city wages at lower rents than Sydney.
Cost of living is only half of what decides a move between Sydney and Melbourne; tax is the other half, and because both cities sit in Australia the tax treatment is identical here — the Australia calculator applies to both, so the whole difference is housing and local prices.
What the gap actually costs
Sydney is the more expensive of the two, about 12% ahead of Melbourne on the combined index (86 against 76), while the gap on rent alone is 19%. Housing does almost all the work between Sydney and Melbourne: groceries and transport move by tens of percent between cities, rents by multiples.
A one-bedroom city-centre flat runs about $2,900 in Sydney against $2,200 in Melbourne — $700 a month between them, or $8,400 a year that never reaches your savings.
What is left after rent in Sydney and Melbourne
On the $95,000 national median behind Sydney, in this comparison with Melbourne, take-home is about $6,151 a month and a one-bedroom city-centre flat averages $2,900, leaving $3,251 for everything else. At 47% that is above what budgeting guidance calls sustainable, so on this Sydney side of the comparison with Melbourne a flatshare or a longer commute is a requirement at the median rather than a preference. On rent index that is the heavier of the two here: Melbourne sits at 70 against 86 for Sydney.
The pressure is not evenly spread across Sydney, and that is what a headline index against Melbourne hides: at $71,250 the same $2,900 rent takes 60% of take-home and leaves $1,905, while at $190,000 it takes 26% and leaves $8,314.
On the $95,000 national median behind Melbourne, in this comparison with Sydney, take-home is about $6,151 a month and a one-bedroom city-centre flat averages $2,200, leaving $3,951 for everything else. At 36% that sits inside the usual 30–40% guidance but not comfortably: Melbourne, set against Sydney, leaves room to save on $95,000 only with deliberate budgeting. On rent index that is the lighter of the two here: Sydney sits at 86 against 70 for Melbourne.
The pressure is not evenly spread across Melbourne, and that is what a headline index against Sydney hides: at $71,250 the same $2,200 rent takes 46% of take-home and leaves $2,605, while at $190,000 it takes 20% and leaves $9,014.
| Salary level | Sydney after rent | Melbourne after rent | Rent share |
|---|---|---|---|
| Below median | $1,905 | $2,605 | 60% / 46% |
| National median | $3,251 | $3,951 | 47% / 36% |
| Well paid | $5,899 | $6,599 | 33% / 25% |
| Senior / specialist | $8,314 | $9,014 | 26% / 20% |
What common roles pay, and what survives the rent
National medians for five widely-held roles, taxed locally and set against the $2,900 rent in Sydney and $2,200 in Melbourne. Pay in Sydney and Melbourne differs from the national figure — capital and financial-centre salaries run above it — so read these as a baseline to adjust from.
| Role | Median gross | Take-home / month | After Sydney rent |
|---|---|---|---|
| Software Engineer | $110,000 | $7,001 | $4,101 |
| Accountant | $80,000 | $5,301 | $2,401 |
| Registered Nurse | $80,000 | $5,301 | $2,401 |
| Teacher | $75,000 | $5,018 | $2,118 |
| Marketing Manager | $95,000 | $6,151 | $3,251 |
| Role | Median gross | Take-home / month | After Melbourne rent |
|---|---|---|---|
| Software Engineer | $110,000 | $7,001 | $4,801 |
| Accountant | $80,000 | $5,301 | $3,101 |
| Registered Nurse | $80,000 | $5,301 | $3,101 |
| Teacher | $75,000 | $5,018 | $2,818 |
| Marketing Manager | $95,000 | $6,151 | $3,951 |
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).
+How much rent should I expect in Sydney?
A one-bedroom city-centre flat in Sydney averages about $2,900 a month. On the national median salary that is 47% of take-home, leaving roughly $3,251 a month for everything else.
+How much do you need to earn to live comfortably in Melbourne compared with Sydney?
On Melbourne's national median of $95,000, take-home is about $6,151 a month and rent takes 36% of it, against 47% in Sydney. Comfort usually starts where rent drops below a third of take-home, which in Melbourne needs about $103,000 gross against the $95,000 median behind Sydney. Tax status and personal circumstances shift the figure either way.
+Would a higher Melbourne salary cancel out its costs versus Sydney?
Not reliably. Rent is a fixed monthly cost while tax is progressive, so moving from Sydney to Melbourne on a proportionally higher salary can still leave you with less: on each city's national median the after-rent figures are $3,251 and $3,951. Compare those columns rather than the gross salaries.
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.