Sydney vs Melbourne: Cost of Living & Salary Comparison
Thinking about relocating between Sydney and Melbourne? This comparison breaks down the real costs, salary differences, and what your money buys in each city.
Sydney
Melbourne
Detailed Cost Comparison
| Category | Sydney | Melbourne | Difference |
|---|---|---|---|
| Cost of Living Index | 80 | 70 | +14% (lower is better) |
| Median Salary | $62,000 | $58,000 | |
| Rent (1BR) | $2,200 | $1,700 | (/month) |
| Rent (2BR) | $3,100 | $2,400 | (/month) |
| Groceries Index | 85 | 80 | +6% (NYC=100) |
| Transport Monthly | $140 | $130 | |
| Effective Tax Rate | 30.5% | 30% | (at median income) |
| Purchasing Power | 84 | 82 | +2% (higher is better) |
Salary Comparison by Role
| Role | Sydney | Melbourne | Difference |
|---|---|---|---|
| Software Engineer | $95,000 | $85,000 | +12% |
| Product Manager | $95,000 | $82,000 | +16% |
| Data Scientist | $92,000 | $82,000 | +12% |
| DevOps Engineer | $98,000 | $88,000 | +11% |
| Frontend Developer | $82,000 | $72,000 | +14% |
| Engineering Manager | $130,000 | $115,000 | +13% |
Sydney Offers Better Purchasing Power
While Sydney may have higher costs, its purchasing power index of 84 vs 82 means your money generally goes further. Higher median salaries ($62,000 vs $58,000) help offset costs.
Common Questions
Based on cost of living indices, Sydney (80) is more expensive compared to Melbourne (70), where NYC = 100.
To maintain the same standard of living, you would need approximately $88,000 in Melbourne to match $100,000 in Sydney.
Sydney has a tech hub score of 7/10 while Melbourne scores 6/10. Sydney generally offers more tech opportunities.
Based on purchasing power, Sydney offers better value. This accounts for both salary levels and cost of living.
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Last updated: 2026-02-19 | Data sources: Numbeo, OECD, Glassdoor, and local government statistics.