Australia on a Budget: What a Trip Really Costs

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Australia has a reputation for being expensive, and it is largely deserved. But the reputation flattens a lot of variation, and there are real levers you can pull.

Here is where the money actually goes, and what to do about it.

The biggest cost is distance

People underestimate the scale. Sydney to Perth is roughly the distance from London to Moscow. Cairns to Melbourne is a long-haul flight in its own right.

Every additional city you add means another domestic flight, and those add up faster than accommodation does. The single most effective saving is to cover less ground.

Two regions done well over three weeks costs far less, and is far more enjoyable, than five regions done in a rush.

Accommodation

The range is wide. Hostels and pub rooms sit at the bottom, motels and serviced apartments in the middle, and resort and city hotels at the top.

Serviced apartments are the value sweet spot for couples and families, because a kitchen substantially reduces the food bill. Holiday parks with cabins do the same job outside the cities.

Prices swing hard with school holidays and with events. Travelling in shoulder season, or simply a week either side of a holiday period, changes the number significantly.

Compare before you commit

Shifting your dates by a week is often worth more than any other saving:

Food and drink

Restaurant meals are expensive, and tipping is not expected, which softens the blow slightly.

The savings are in the middle ground: bakeries, food courts, Asian food in the inner suburbs, pub counter meals, and the excellent supermarkets. A barbecue in a public park with free electric grills is a genuine Australian institution and costs almost nothing.

Alcohol is heavily taxed and buying it at a restaurant is the fastest way to inflate a bill. Look for the licensing arrangement where you bring your own wine for a small fee.

Transport

Book domestic flights early. Prices rise steeply close to departure and budget carriers compete on the main routes.
City public transport is good and capped in most capitals. Use a contactless card rather than buying tourist passes.
Hire cars are essential outside the cities but check one-way drop-off fees, which can be severe.
Campervans combine transport and accommodation but are not automatically cheaper once fuel and site fees are counted.
Long-distance coaches and trains exist and are cheap, but consume days.

What costs nothing

A surprising amount of the best of Australia is free.

Beaches and coastal walks, the major state galleries and museums in most cities, botanic gardens, public barbecues and pools, markets, and much of the national park system beyond a modest vehicle fee.

The expensive items are the organised experiences: reef trips, dive courses, scenic flights and guided tours. Pick two or three that matter to you and fill the rest of the trip with the free stuff.

Frequently asked questions

Is Australia more expensive than Europe?

Comparable for accommodation and food, more expensive for internal travel because of the distances, and cheaper than many places for everyday attractions.

Do I need to tip?

No. Staff are paid a proper wage. Rounding up for good service is appreciated but never expected.

When is the cheapest time to go?

The wet season in the tropical north, and winter in the southern cities, outside school holidays. Avoid the Christmas and January period entirely if budget is the priority.

Can it be done on a backpacker budget?

Yes, and there is a well-worn infrastructure for it: hostels, shared transport, cooking for yourself and working holiday visas for longer stays.

Three ways to travel, three very different budgets

Rather than a single daily figure, it helps to think in terms of which trip you are taking.

The backpacker trip runs on hostel dorms, self-catering, long-distance buses and free beaches, with one or two paid experiences saved up for. It is the cheapest way to see the country and there is a well-established infrastructure supporting it.

The mid-range trip means serviced apartments or motels, a hire car, cooking breakfast and eating out once a day, and booking domestic flights early. This is where most visitors land and where the savings advice above makes the biggest difference.

The comfortable trip adds city hotels, restaurant meals, guided reef and outback experiences and internal flights booked late. It is a very good holiday and it costs several times the first option.

Mixing them is the smart approach: splurge in the places worth splurging on and economise on the transit days.

Where people overspend

Late domestic flights. Booking internal legs a fortnight out rather than months ahead is the most common and most expensive mistake.
One-way car hire. Drop-off fees across states can exceed the rental itself.
Drinking out. Alcohol is heavily taxed and restaurant markups are steep.
Airport transfers booked as private transfers when public transport or a rideshare would do.
Over-scheduling tours. Two well-chosen experiences beat six mediocre ones.
Travelling in the school holidays without realising it, which inflates everything at once.

Practical money matters

A few small things add up over a long trip.

Cards are accepted almost everywhere, often with a surcharge that must be disclosed. Carrying a little cash is still useful at markets and in remote towns.

Prices include tax, so the number on the shelf is the number you pay. There is no tip to add on top either.

Weekend and public holiday surcharges are common in cafés and restaurants, typically a small percentage, and are legal when signposted.

The tourist refund scheme lets departing visitors reclaim tax on certain goods bought shortly before flying out. Keep the receipts and allow time at the airport.