Is New Zealand cheaper than Australia? Going on holiday & living in NZ

New Zealand on the whole is probably more expensive than Australia!

I would say New Zealand is on par with Australia and it is very similar, but Australia tends to be a little bit more expensive.

Because New Zealand is a small island (comparatively) to Australia, and has a limited population, there tends to be a greater import cost and greater tax cost. I’ve seen a lot of blogs saying that Australia is slightly more expensive (but the salaries are higher), but I actually found that the groceries in New Zealand were noticeably more expensive! Not by an outrageous amount, but still noticeable!

I’m Australian, and have family in New Zealand too and just spent a few months travelling around BOTH countries, and frankly, New Zealand is a little more expensive. Even the grocery shopping really surprised me in NZ as it was noticeably higher than Aus! At least in Australia you have cheaper supermarkets like Lidl & Aldi which I saw a lot less of in New Zealand.

And the economies of scale from Australia is significant compared to New Zealand; Australia simply has a higher buying power. Apparently the buying power of New Zealand when it comes to groceries etc. is around 17% lower than Australia, meaning NZ can be a bit more expensive when it comes to groceries.

Table of Contents

Quick Mini Guide To New Zealand

Don’t have a lot of time? Here’s a quick mini guide to New Zealand.

North Island or South Island?

North Island has lots of activities & things to do. Think geysers, hot geothermal springs, white water rafting, vibrant cities & bustling cafes.
South Island has the best landscapes, is quiet, peaceful, has scenic mountains & dramatic valleys. Great in winter for skiing.

highlights in New Zealand

South Island – Milford Sounds (8th wonder of the world), Onsen Hot Pools, Getting a scenic flight around Lake Tekapo

North Island – Geothermal mud Spas, the incredible Hot Water Beach, Glow worm caves.

Stay connected

Purchase an eSim with Airalo on your phone – Use discount code A&M3 for $3 off your first purchase.

Lake Pukaki viewing point: Lake Tekapo to Mt Cook

Are you visiting New Zealand?

Have a look at some of my other New Zealand travel guides for attractions nearby on your South Island itinerary or North Island:

Is New Zealand cheaper than Australia?

I was actually fairly surprised upon my arrival to New Zealand from Australia. The food in the supermarkets was noticeably more expensive.

There are some circumstances where New Zealand is ‘cheaper’ but when you compare this to wages, then Australia has higher wages to compensate.

Costs of regular foods in the supermarket… for example, tomatoes were around 10 NZD per kilo whilst it was 5-6 AUD.

Eating out at restaurants

I can’t remember either Australia or New Zealand being particularly more expensive than the other when it comes to dining out, so you’re likely to find both offer similar value for enjoying great meals

Comparing the cost of visiting or living in New Zealand versus Australia involves several factors, including currency exchange rates, local prices for goods and services, accommodation costs, and lifestyle choices. Here’s a breakdown to give you a clearer picture:

Visiting New Zealand as a Tourist

Hotels & Accommodation: Prices can vary widely depending on the location and type of accommodation. Budget options like hostels and campsites are generally affordable, but hotels and resorts in tourist-heavy areas like Queenstown can be pricey.
Activities: New Zealand is known for its outdoor and adventure activities, ranging from hiking to bungee jumping. While many natural attractions are free, activities like guided tours, adventure sports, and cultural experiences can add to the cost.
Transport: Renting a car or camper van is a popular way to explore the country, but fuel and rental costs can be high. Public transport options are more limited, especially in rural areas.
Food: Eating out in New Zealand can be expensive, but self-catering by shopping at local supermarkets can help save money.

Visiting Australia as a Tourist

Accommodation & hotels: Similar to New Zealand, accommodation costs in Australia vary. Major cities like Sydney and Melbourne can be particularly expensive, but there are always budget options available.
Activities: Australia offers a wide range of activities, from exploring the Great Barrier Reef to visiting iconic landmarks like the Sydney Opera House. Prices for tours and activities are comparable to New Zealand, with plenty of free natural attractions.
Transport: Australia is a massive country, and distances between major attractions can be significant. While car rentals offer flexibility, fuel costs and long distances can increase expenses. Australia has a more extensive public transport network in urban areas compared to New Zealand.
Food: Dining out in Australia’s major cities can be costly, but, as in New Zealand, costs can be mitigated by self-catering.

New Zealand mirror lakes – Queenstown to Milford Sound

Onsen Hot Pools Queenstown — New Zealand mirror lakes – Queenstown to Milford Sound

Living in New Zealand:

Housing: The cost of housing in New Zealand, especially in Auckland and Wellington, can be high, both in terms of buying and renting.
Cost of Living: Daily expenses, such as groceries and utilities, are generally high. However, healthcare is accessible, and public services are of good quality.
Income: Salaries in New Zealand may be lower than in Australia, which can affect overall affordability and savings potential.

If you decide to move to New Zealand, check out the NZ government requirements!

New Zealand is one of the happiest places to live

New Zealand is often ranked as one of the happiest countries in the world, according to various international surveys and reports, including the World Happiness Report. The World Happiness Report ranks countries based on factors such as income, social support, healthy life expectancy, freedom to make life choices, generosity, and perceptions of corruption.

New Zealand’s high ranking in these reports can be attributed to several factors:

Quality of Life: New Zealanders enjoy a high quality of life, with access to beautiful natural landscapes, a relatively clean environment, and a strong sense of community.
Healthcare and Education: The country has a robust healthcare system and a high standard of education, both of which contribute significantly to the well-being of its residents.
Economic Stability: New Zealand has a stable economy with relatively low unemployment rates and a decent standard of living.
Safety and Security: New Zealand is considered one of the safest countries in the world, with low crime rates, which contributes to a sense of security among its residents.
Political Stability: The country is known for its stable political environment and transparent government practices, which foster trust among the population.

VERDICT: NZ a bit more expensive when comparing wages & cost of living.

Living in Australia:

Housing: Housing costs in Australia’s major cities are among the highest in the world. However, there is significant variation across different regions.
Cost of Living: Like New Zealand, the cost of living in Australia is high, but this can vary greatly depending on the city or region. The salaries are usually higher than NZ! Healthcare and education are of high quality, which can offset some of the living costs.
Income: Average salaries in Australia tend to be higher than in New Zealand, which can make managing the high cost of living easier for some people.

Have a look at the Australian immigration criteria.

VERDICT: Australia a bit less expensive, especially when comparing wages & cost of living.

Both New Zealand and Australia offer unique experiences for tourists and a high quality of life for residents. The choice between the two will depend on YOUR individual preferences, your lifestyle, and of course, your budget. While both countries can be expensive to visit and live in, they also offer various ways to manage costs and enjoy what each has to offer.

If you’re thinking of moving… then you’ll have to do a lot of research into places to live – rentals, buying homes, etc. so it’s best to look up a renting or mortgage calculator!

New Zealand vs Australia Salary

jobs in Australia

In Australia, the average full-time salary is relatively high compared to many other countries, reflecting the country’s strong economy and high cost of living, especially in major cities like Sydney and Melbourne.

The average net salary (for full-time adult earnings) in Australia were about AUD 90,000 per year before taxes. However, this figure can vary significantly across different sectors and regions. For instance, jobs in mining and IT tend to offer higher salaries, while retail and hospitality may offer lower average wages.

jobs in New Zealand

New Zealand’s average salary is generally lower than Australia’s, which is consistent with the overall cost of living and economic conditions. However, like Australia, there’s considerable variation across different job sectors and regions.

The average full-time adult earnings in New Zealand were approximately NZD 70,000 per year before taxes. Again, sectors like IT, finance, and engineering typically offer higher salaries, whereas hospitality and retail are on the lower end of the salary scale.

Weather in Australia vs New Zealand

Australia is obviously a huge country so the weather varies hugely from north to south, but here’s an average temperature range and average rainy days.

On the whole, Australia is warmer and New Zealand is slightly colder thanks to it being located a bit more southerly than Aus.

Month	NZ Avg Temp (°C)	NZ Avg Rainy Days	Australia Avg Temp (°C)	Australia Avg Rainy Days
January	20	7	25	10
February	20	7	25	10
March	18	8	22	9
April	15	8	20	9
May	12	9	16	8
June	10	10	14	8
July	9	11	13	7
August	10	10	15	7
September	12	10	17	8
October	14	9	20	9
November	16	8	22	10
December	18	8	24	10

Key Points:

New Zealand (NZ): Experiences moderate temperatures year-round with a higher number of rainy days, reflecting its maritime climate.
Australia (AU): Shows higher average temperatures across the board, with the number of rainy days varying by region but generally lower than New Zealand. The temperature range is more pronounced due to Australia’s larger geographical diversity.

Remember, these are broad averages, and actual weather can vary widely, especially in a country as large as Australia.

I hope that helps!

Quick links

Here’s everything I use when I travel abroad:

Tours – Compare tour prices on Viator and Get Your Guide

Hotels – I always use Booking as the more hotels I book, I get a higher Genius discount. I also compare prices on Expedia.

E-Sims – purchase an e-sim with Airalo on your phone so you can make calls and have mobile data abroad! There’s no need to remove your current sim card!

Travel insurance – don’t ever go on vacation without travel insurance, you never know when you might need it!

Travel essentials – have a look at a full list of travel essentials that I use, including the best power bank!

My other New Zealand guides: