Australia the worlds most expensive country to live in ( like we didn't know already)

[OZCUBAN]

Why Australia's still the world's most expensive place to live

Australia - the football champion of Asia, recent victor at the Cricket World Cup - has just taken out a less-coveted gong: most expensive country. Again.

Deutsche Bank, in its fourth annual Mapping the World's Prices report, found for the fourth year in a row that a buck in Australia brings the least bang. Australians, topping the purchasing power parity index, pay $1.12 in their currency for what Americans can obtain for one dollar of their own.

Getting from A to B on public transport costs more in Australia than anywhere else. So does buying a pack of cigarettes, while accommodation in Sydney is especially exorbitant.

The United Kingdom was rated the third most expensive country, while New Zealand came in second as its currency nears parity with the Australian dollar.

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The United States has been the cheapest among developed nations. But the report found "the strength of the US dollar has significantly narrowed the gap" between the US and Australia.

The Australian dollar has fallen 18 per cent against the US dollar over the past year, fetching US76.67¢ on Thursday. The US Federal Reserve is mulling an increase to interest rates that would send investors looking for higher returns back to the greenback.

Exchange rate changes also mean "shopping in Europe and Japan now feels a lot cheaper than before".

Sydney, along with Paris and London, was ranked as one the most expensive places in the world for a weekend getaway, mainly due to high hotel room prices. A Sydney five-star hotel room is more than twice the price of one in New York. In comparison, Melbourne was a cheap stay, costing about 70 per cent as much as New York.

The US is the cheapest place to buy an iPhone 6 while German MBA programs are the best value: "the fees are a third of US levels but salaries offered to graduates are 80-85 per cent of US levels".

Melburnians and Sydneysiders pay more for their cigarettes than anyone else in the world; for every pack, 70 per cent of the cost is paid to the government in taxes.

Residents of Moscow, Jakarta and Manila, meanwhile, pay just a 10th of the cost of a pack in the US.

Also encouraging good health in Australia is the low cost of gym memberships, which are much cheaper in Sydney and Melbourne's central business districts than those in the US.

But a pair of trainers was more expensive, though nowhere near as much as in France, Germany, or China.

For those looking for an inexpensive romantic outing, choose Indian. Mumbai and Delhi are at the top of Deustche's refined "cheap date" index, while Rio de Janeiro and Mexico City also earned a mention. Tokyo, Wellington and San Francisco were among the most expensive nights out.

Big Mac fans should avoid Latvia, which topped the famous burger index, as well as Lithuania and Norway.

Deutsche Bank Australia chief economist Adam Boyton, who was not an author of the report, said Australia was expensive because "we've gone a very long time now without a serious economic slowdown".

"In the absence of that, prices have drifted higher over time," he said. "The surge in commodity prices that had underpinned our economic performance meant we really didn't have to be efficient. We could just rely on getting paid much more to do the same thing."

Mr Boyton said he wanted to see more of a focus on competition policies such as those recommended in the Harper review, handed down this month. It proposed fewer rules around taxis, hotels, pharmacies and retail opening hours.

Deutsche compiles its list using internet prices as well as secondary sources. It warns that its map gauges prices but not affordability "in comparison to local purchasing power".

AMP chief economist Shane Oliver said some immediate respite would come from further falls in the Australian dollar. Dr Oliver expected an interest rate increase by the US Federal Reserve plus rate cuts from Australia's Reserve Bank would push the Australian dollar below US70¢.

"That's another 10 per cent decline which will further narrow the price gap between Australia and the US," he said.

But Dr Oliver warned currency decline would eventually bring lower living standards and that Australia needed to create more labour market flexibility to drive down prices.

"We've dropped the ball in the last 10-15 years," he said.

[JohnS]

The Sydney FoH boys were discussing this topic at our last get together. We agreed that Sydney is very expensive, as is Australia in a general sense, but there's also nothing like home!

[MIKA27]

Don't get me started on this Steve

[ORITO_SAMA]

you guys should try living in Brazil, four months of work just to pay taxes, lousy public services in every area, health, roads, education, public transport, public security, lots of corruption...

[Orion21]

One common thread links the high costs in not only Australia, but all over the world and that is the role of the Government. In countries where the government has taken control of services and promised cradle to grave benefits to it's people the cost of everything has gotten out of control. If you were to dig deep enough it would be very very obvious that Government has added layers and layers of fees and taxes to your life to fund programs that either don't run efficiently and/or reward more and more people to not be productive and depend on the State. At the same time this kills business because it's not only the wealthy who get tapped, but the business market is burdened with layers of red tape and taxes/fees to do business to help fund the pyramid scheme.

For as much as we Americans complain about political parties, taxes, healthcare etc. we are very fortunate. If you want to live in a low cost area you can find many many places in the US. However, that is becoming more difficult to find in California and the East Coast. This is driven by higher income and property taxes - fees of all kinds and higher and higher sales taxes. All in, some areas require in excess of 60% - 70% of your income to pay your taxes and support the locality where you live. However, if you look to where all of this money is going there is little to no expansion of actual services or support. The quality of public education is horrible and much of the new money is going to pay for government employee retirement benefits or support inefficient welfare programs.

[KRunch61]

One common thread links the high costs in not only Australia, but all over the world and that is the role of the Government. In countries where the government has taken control of services and promised cradle to grave benefits to it's people the cost of everything has gotten out of control. If you were to dig deep enough it would be very very obvious that Government has added layers and layers of fees and taxes to your life to fund programs that either don't run efficiently and/or reward more and more people to not be productive and depend on the State. At the same time this kills business because it's not only the wealthy who get tapped, but the business market is burdened with layers of red tape and taxes/fees to do business to help fund the pyramid scheme.

For as much as we Americans complain about political parties, taxes, healthcare etc. we are very fortunate. If you want to live in a low cost area you can find many many places in the US. However, that is becoming more difficult to find in California and the East Coast. This is driven by higher income and property taxes - fees of all kinds and higher and higher sales taxes. All in, some areas require in excess of 60% - 70% of your income to pay your taxes and support the locality where you live. However, if you look to where all of this money is going there is little to no expansion of actual services or support. The quality of public education is horrible and much of the new money is going to pay for government employee retirement benefits or support inefficient welfare programs.

Well put. As government intervention in an economy increases, liberties of all kind decrease. The inevitable result (economically speaking) is debt, higher prices, economic stagnation, and a lowering of living standards. There will always be the elite who think they can "manage" highly complex, trillion dollar economies. Their hubris and our indifference result in the financial mess that, unfortunately, has become the norm.

I also agree with Orion's last statement as well (and I'm a public school teacher.) Privatization (competition) would go a long ways towards solving that problem.

[cottierm]

Impossible! Have they forgotten Switzerland?

[Nrengle]

This is why I go sober and eat like crap whenever I go to Oz. The $50 caese of beer was unreal in Sydney!

[Duxnutz]

This is why I go sober and eat like crap whenever I go to Oz. The $50 caese of beer was unreal in Sydney!

If you think that's expensive, look at car registration and property ownership! When things go up in price it always seem to be 20-50%! I grew up in Oz but bet your bottom dollar I'm retiring somewhere else!

[Surucipe]

Impossible! Have they forgotten Switzerland?

No kidding! Prices here never cease to amaze me, it's beyond a joke!

[Nrengle]

If you think that's expensive, look at car registration and property ownership! When things go up in price it always seem to be 20-50%! I grew up in Oz but bet your bottom dollar I'm retiring somewhere else!

I remember on the drive from the airport in Sydney to downtown that it was like 300 square meter flat for $500,000 plus. And Perth was even more. I don't know how some of my friends do it there.

[Fuzz]

I remember on the drive from the airport in Sydney to downtown that it was like 300 square meter flat for $500,000 plus. And Perth was even more. I don't know how some of my friends do it there.

$500k? That's a bargain for a 300sqm apartment! My 90sqm single bdr unit (79sqm living space + 11sqm balconey, and secured garage) in Blacktown (Greater Western Sydney region) is valued at $350k-$400k. The price per sqm in Sydney is anywhere between $2500 to $14000, depending on where you live.

[MIKA27]

If you think that's expensive, look at car registration and property ownership! When things go up in price it always seem to be 20-50%! I grew up in Oz but bet your bottom dollar I'm retiring somewhere else!

Mate I just paid my rego and feel like I been raped....

[Fuzz]

Mine is coming up in the next few weeks. About $1000 for registration and CTP.

[thecrowder]

Whenever people ask me about the cost of living in Sydney, there are a few things that I tell them:

• No happy hours...the cheapest draft beers that I found in the city were like $6
• $45-55 for a case of beer
• $20+/person for cheap Thai food
• Clothes...holy crap they are expensive! I always laughed when my co-workers would tell me about their trips to Honolulu and how cheap things were there. If you think that Hawaii is cheap, wait until you get to the mainland!
• Most ATMs give out $50s...$20s just don't go that far
• $27+ for a single Bolivar Royal Corona

I also remember thinking that the rent in Sydney was crazy expensive and that I'd never live anywhere more expensive...and then I moved to San Francisco...the rent is way more here, but, at least everything else is a little cheaper.

[Borgy]

I'm easy going if they dropped the tabbaco tax on cigars I would be happy I know that is single minded but I can put up with most things but I hate being screwed with this tax.?

[JohnS]

I'm easy going if they dropped the tabbaco tax on cigars I would be happy I know that is single minded but I can put up with most things but I hate being screwed with this tax.

Yes, I know how you feel. The question I ask myself is...'aren't we already taxed enough on our income, goods and services already?'

[Fuzz]

Whenever people ask me about the cost of living in Sydney, there are a few things that I tell them:

• No happy hours...the cheapest draft beers that I found in the city were like $6
• $45-55 for a case of beer
• $20+/person for cheap Thai food
• Clothes...holy crap they are expensive! I always laughed when my co-workers would tell me about their trips to Honolulu and how cheap things were there. If you think that Hawaii is cheap, wait until you get to the mainland!
• Most ATMs give out $50s...$20s just don't go that far
• $27+ for a single Bolivar Royal Corona

I also remember thinking that the rent in Sydney was crazy expensive and that I'd never live anywhere more expensive...and then I moved to San Francisco...the rent is way more here, but, at least everything else is a little cheaper.

Happy Hour doesn't exist in Sydney... it's Happy Hours. My local has it from 5pm to 7pm. And on Fridays it starts at 4pm!

[Duxnutz]

Weather is great though. I'm sitting outside trying to smoke a Hoyo and its 7 degrees here in Ohio!

[Orion21]

Yes, I know how you feel. The question I ask myself is...'aren't we already taxed enough on our income, goods and services already?'

The more they tax you and the more expensive it is to live the more dependent you are on Government services and eventually Government provided retirement funds. The more money a populace has in-hand the less they need Government to provide. It's a really easy system to understand. The tighter they make the straitjacket the less you fight and just accept the inevitable conclusion, which is they own you.

I know I sound very anti-government, but really I'm not. Police, fire, roads etc are all very important functions government plays. However, today many European governments, and definitely Australia, make decisions based on how to control their populace. Tax tobacco so they don't get cancer. Tax beer because they can't control their consumption. Tax, tax, tax and tax some more until everything is some cause that requires tax revenue to fix it or control it. In my view it's nothing more than a play for power and for whatever reason populaces have decided they are willing to give away all their power for healthcare (paid for by taxes!) and some form of pension when your 65-70 years old! It's just crazy to me.

[Nrengle]

$500k? That's a bargain for a 300sqm apartment! My 90sqm single bdr unit (79sqm living space + 11sqm balconey, and secured garage) in Blacktown (Greater Western Sydney region) is valued at $350k-$400k. The price per sqm in Sydney is anywhere between $2500 to $14000, depending on where you live.

Sorry had my conversion wrong hahaha. The metric system as a second language doesn't always work out.

[Nrengle]

Weather is great though. I'm sitting outside trying to smoke a Hoyo and its 7 degrees here in Ohio!

And the 40mph winds here aren't helping today....

[LordAnubis]

The way i always look at things is by "how much i have to work for it". So how many hours do i have to work to afford that bottle of milk or that holiday or whatever. Yes Australia is expensive, but the average full time wage is 74000. I would assume that's pretty high!! I think the amount i have to work for a bottle of milk in Australia would be less than in London... in london things are also expensive and their wages are lower i think.

I have no idea how to back up any of what i have said with facts from reliable sources, i speak purely from my experiences in both countries

[Nrengle]

The way i always look at things is by "how much i have to work for it". So how many hours do i have to work to afford that bottle of milk or that holiday or whatever. Yes Australia is expensive, but the average full time wage is 74000. I would assume that's pretty high!! I think the amount i have to work for a bottle of milk in Australia would be less than in London... in london things are also expensive and their wages are lower i think.

I have no idea how to back up any of what i have said with facts from reliable sources, i speak purely from my experiences in both countries

Yeah London is expensive for sure. But I still consider it reasonable next to Australia, Norway, and Moscow. Holy crap those places are $$$

[Borgy]

I live in Bundy we have 20% unemployment and the wages here are the lowest in Qld according to local figures I could move but my employment is stable.The company will not negotiate evan CPI wage rise in 2 years its getting harder for lifes little pleasures and getting harder my wage is not even close to 74000K smoking cigars will be first to go I work hard for my coin but the taxes on everything you like in life are a joke. I dont mind paying income tax thats a given but its 10% on the other things and $587kg and going up on the things you like as freedom of choice its the kick in the guts.