Cost Analysis: Living in the UK vs Working Holiday in Australia

Why Brits are ditching UK winter in favour of a working holiday in Australia

The UK’s cost of living crisis has been well documented. The pressures stem from events beyond the control of the average citizen: the economic impact of COVID, political instability and the Russian invasion of Ukraine, to name just a few.

These are just some of the reasons why summer 2022 is predicted to be a bumper year for young travellers looking to relocate down under.

Brits are trading a long and expensive UK winter for the fun and sun of an Australian summer, through the Aussie Working Holiday Visa program.

Taking a gap year (or three) in Australia was already a popular pastime for young Brits, but research commissioned by Backpacker Job Board has found that a working holiday now represents a smart financial decision on top of all the adventure!

Cost of living: Australia vs UK

Our research compared 15 major Australian cities across 8 cost of living criteria points. The chart below shows our table of results. 

Figure 1. The final results.

The cities which featured highly most often included Sunshine Coast (7 times), Geelong (6 times) and Toowoomba (6 times).

1. Sunshine Coast – 7 times
2. Geelong, Toowoomba – 6 times
3. Adelaide, Canberra – 4 times 
4. Gold Coast, Hobart, Brisbane, Wollongong – 3 times
5. Cairns, Darwin, Perth – 1 time
6. Brisbane, Melbourne, Newcastle, Sydney – 0 times

Based on average ranking position, Toowoomba, Geelong, Sunshine Coast, Hobart, and Adelaide performed best overall.

Sunshine Coast – best value for backpackers

Of the 8 metrics we analysed, the Victorian city of Geelong came out on top three times. A fast-growing hub that forms the gateway to the state’s famous surf coast, Geelong offers plenty of fun and excitement on top of its cost-effectiveness.

But the most consistent performer was Queensland’s Sunshine Coast. The Sunny Coast is fast becoming Australia’s favourite backpacking destinations and earned a top 5 finish in 7 of our 8 tables.

The name of this subtropical paradise says it all: here you’ll enjoy incredible year-round weather amongst stunning nature, from the vibrant greens of the hinterland, across the golden sands of the endless surf beaches, to the deep blue hues of the Pacific Ocean.

The Sunshine Coast is also less a city than a succession of unique and charming coastal communities. The vibrant hubs of Caloundra, Mooloolaba and Noosa are interspersed with alternative towns like Maleny and Eumundi. It’s a place where every working holiday maker can find a temporary home and tribe.

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View all our latest jobs on the Sunshine Coast, where you will find a range of roles from hospitality to fruit picking jobs.

The data

Is it more cost-effective to live through the looming London winter or enjoy an extended stay in Australia? Our data is clear: living in Australia is by far the cheaper choice.

The average cost to maintain a standard of living in London is £5,100 per month. The equivalent figure is lower for every major Australian city.

Figure 2 – Cost to maintain standard of living of London

Caption: Ranking order for Australian cities, based on equivalent cost to maintain standard of living of London

Let’s break this figure down, first by estimated monthly costs (minus rent). In London, a single person can expect to spend £894.87 per month before rent. Once again, the figure is lower for every major Australian city:

Figure 3 – Monthly Cost

Caption: Ranking order for Australian cities, based on a single person’s estimated monthly costs without rent

The consumer price index is another useful metric. Compared to London, consumer prices excluding rent are also lower in all 15 major Australian cities. When rent is included, there are 4 cities which compare worse off (Melbourne, Darwin, Sydney and Cairns).

Figure 4 – Consumer prices without rent

Caption: Ranking order for Australian cities, based on consumer prices without rent (versus London)

Figure 5 – Consumer prices with rent

Caption: Ranking order for Australian cities, based on consumer prices with rent (versus London)

Focusing exclusively on rent, just one city – Wollongong – is currently more expensive than London.

Figure 6 – Rent prices (versus London)

Caption: Ranking order for Australian cities, based on rent prices (versus London)

Our analysis found that a meal at a restaurant will cost you less in all major Australian cities than it will in London:

Figure 7 – Restaurant prices (versus London)

Caption: Ranking order for Australian cities, based on restaurant prices (versus London)

Finally, we analysed ‘local purchasing power’: a metric that describes your relative ability to buy goods and services in a city given that city’s average wage. Local purchasing power was higher than London in all but two of our 15 Australian cities: Newcastle and Wollongong.

Figure 8 – Local purchasing power (versus London)

Caption: Ranking order for Australian cities, based on local purchasing power (versus London)

Across our analysis of eight metrics, there was only one in which London outperformed Australian cities: grocery prices.

Figure 9 – Groceries prices (versus London)

Caption: Ranking order for Australian cities, based on groceries prices (versus London)

The best time to be a working holidaymaker

“Budgeting for an Australian working holiday is far from an exact science, but by understanding the basic cost of living, you’ll be far better prepared for the adventure that lies ahead,” says Matthew Heyes, founder of Backpacker Job Board. He stresses that the cost of the visa, flights and travel insurance must also be considered.

Nevertheless there are a number of compelling reasons to embark on an Australian working holiday beyond the cost of living.

“Australia is a land of rich natural beauty. The cultural experience of a working holiday in Australia is one of the best in the world. Backpackers make lifelong friendships, enjoy a unique adventure and pick up invaluable life skills working across a range of industries,” says Matthew. 

“Demand for workers is strong, minimum wage is high. Now is a great time to be a backpacker in Australia.”

Footnote:

The 8 criteria data points include:

1. equivalent cost to maintain standard of living
2. a single person’s estimated monthly costs without rent
3. consumer prices without rent
4. consumer prices including rent
5. rent prices
6. restaurant prices
7. groceries prices
8. local purchasing power

Data source: Numbeo.