Cost of Living in Canberra: What You'll Actually Pay in 2025

Canberra is one of Australia's most expensive cities to live in despite being neither the largest nor the most internationally recognised, driven by the ACT's high household income (Australia's highest median household income by jurisdiction) which has driven up housing, childcare, restaurant, and services costs to match the wages available. Canberra's costs are broadly Sydney-comparable for housing and above Sydney for rates and some services, but the higher wages partially offset these costs for public service and professional workers.

Housing — a one-bedroom apartment in the inner suburbs (Braddon, New Acton, Kingston) runs $400-$550 per week. A two-bedroom apartment is $500-$700. The ACT's rates (land tax equivalent) are Australia's highest per property, adding a meaningful property holding cost that rental leases typically do not pass through directly but that affects investor decisions. The median house price across the ACT is approximately $900,000.

ACT rates — Canberra homeowners pay some of Australia's highest annual rates bills, with average annual rates for a median residential property running $2,500-$3,500 per year, significantly above the NSW or Victorian equivalents for comparable properties. This is a deliberate ACT Government policy of rates-for-stamp-duty replacement that is phasing in over 20 years.

Groceries and dining — weekly groceries for a couple run $120-$170 at the main supermarkets. Canberra has excellent restaurant quality driven by the diplomatic, public service, and university community, with the Braddon and Kingston strips providing dining that competes with the inner-city quality of Sydney and Melbourne at prices that are broadly comparable.

Childcare — Canberra has some of Australia's most expensive childcare costs in absolute terms, reflecting the high income and high demand in a city where dual professional households are the norm. After the Child Care Subsidy, out-of-pocket costs for full-time childcare can still reach $800-$1,200 per month for a middle-income household.

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