Debt reduction

Lowest balance first

This strategy gives you the psychological benefit of seeing debts disappear quickly. It is sometimes referred to as the ''snowball'' effect. You will probably pay more interest than you would by attacking your ''high interest'' loans first.

Highest interest first

Attacking your high interest loans first will reduce the amount of interest you pay. This will normally be the better strategy .

Repaying the minimum

There is often a minimum repayment demanded by the lender. Paying the minimum can result in the debt taking decades to repay. If cash-flow demands you can only repay the minimum then paying occasional lump sums (perhaps an annual bonus) can substantially reduce the repayment period. This is known as ''snowflaking''.

Personal debt in Australia

The Reserve Bank of Australia or the RBA has determined that most of the debt Australians carry is for mortgages, loans and credit cards. These debts are worth over $1 trillion AUD and equals around $80,000 for every Australian adult. This is higher than any other citizen in the world.

Cost of travel

• Planes, boats, trains, cars and buses. This is hard to predict but try.
• Entertainment and sightseeing. Bars, shows, restaurants, places of interest etc.
• Food that you prepare yourself
• Clothes and special equipment
• Vaccines and visas
• Internet costs - a rising expense
• The cost of borrowing

Budget

In December 2022 Numbeo put out the following living costs in Australia

Use the calculator above for a worked example with current figures.

Rent or buy

The benefits of buying

The pride of home ownership

• A good chance of enjoying capital growth.
• The family home is not counted when testing for the age pension.
• You are protected agains rental increases.

The drawbacks of buying

• More expensive in the early years than renting.
• You are vulnerable to high interest rates on mortgages.
• You are liable for the costs of maintenance.
• You are liable for the costs of ownership like council rates.
• You may buy in a place you can afford which could be a place you wouldn't normally choose to live.

The benefits of renting

• Easier to afford living in a place you couldn't afford to buy.
• No costs of ownership or maintenance.
• Easier to move to a place that suits you better.

The drawbacks of renting

• The rent you pay can never be recouped in capital gains. It is gone forever.
• Rent increases can be steep especially if there is a rental shortage in your area.
• There is no pride of ownership.

Most Australians harbour the dream of home ownership and this has led to them being the most indebted nation on the planet. Home ownership in countries like Germany, Austria and Switzerland is only around 50% or less.

Wedding costs

Weddings can cost anywhere from a few thousand dollars to tens of thousands, depending on guest numbers, venue, catering and the day of the week. The big-ticket items are usually the venue, food and drink, followed by photography, clothing and entertainment. Set a budget early, decide what matters most to you both, and track spending against it — many couples find costs creep well beyond the original plan.

Education costs

School fees

Use the calculator above for a worked example with current figures.

University fees

University fees range from $20,000 to $50,000 depending on the course chosen. Fee-help is available to some students. For those who qualify, the government pays the fees up-front and the student repays once they start earning income. The amount repaid depends on how much is earned.

Other costs

Fees makes up just one part of the total cost when paying for education for your child. Other costs you need to consider include:

• Computers
• Uniforms
• Travel
• Excursions
• Extra curricular activities
• Tutoring and other outside school learning
• Boarding fees

Add these costs to tuition fees if you have an idea of how much they will be.

What it costs to educate a child in Australia

Education is one of the largest expenses a family plans for, and the numbers vary enormously by sector, state and school. The figures below are indicative national averages and ranges for 2026 — use them as a planning guide, not a quote. Fees at any individual school or course can sit well outside these bands.

Preschool and childcare

Long day care nationally averages around $140 to $150 a day before subsidy, and more in the major cities — commonly $150 to $210 a day in metropolitan Sydney and Melbourne. The Child Care Subsidy (CCS) reduces this substantially: families earning under about $85,000 receive 90%, tapering down as income rises and cutting out around $535,000. From 5 January 2026, all eligible families receive at least three days (72 hours a fortnight) of subsidised care, regardless of activity. Government-funded kindergarten in the year or two before school is free or low-cost in most states.

Government (public) schools

Public schooling is often assumed to be free, but it isn't cost-free. On top of voluntary contributions, families pay for uniforms, devices, textbooks, excursions, camps and sport. These typically run from a few hundred dollars to several thousand a year, and the total cost across 13 years of a government education is commonly estimated at around $80,000 or more once all the extras are counted.

Catholic schools

Catholic systemic (diocesan) schools are usually the most affordable non-government option, because they receive a large share of government funding. Indicative annual fees:

Sibling discounts are common in the systemic system, which can materially reduce the cost for larger families.

Independent (private) schools

Independent school fees cover a very wide range. National averages sit around $15,500 a year for primary and $27,500 a year for secondary, but elite GPS, APS and CAS schools charge $42,000 to $55,000 a year for Year 12, with boarding adding a further $25,000 to $45,000. Just as important, the headline tuition is only part of the bill — uniforms, devices, camps, music and co-curricular costs commonly add 25% to 60% on top. A family budgeting $30,000 in tuition should realistically plan for $38,000 to $45,000 all-in.

University

Most domestic undergraduates study in a Commonwealth Supported Place (CSP), where the government pays part of the cost and the student pays a student contribution banded by field of study. For 2026 these range from about $4,738 a year (Band 1 — e.g. teaching, nursing, agriculture) to about $16,392 a year (Band 4 — e.g. law, commerce, medicine).

Students can pay upfront or defer the cost with a HECS-HELP loan, repaid through the tax system. From 2025–26, repayments apply only to income above $67,000, on a marginal basis. HELP debt is indexed each 1 June (about 2.8% for 2026). Full fee-paying students instead use FEE-HELP, which has a lifetime limit of about $136,788 (or $170,984 for medicine, dentistry and veterinary science).

Vocational education (VET / TAFE)

VET and TAFE fees are set largely by the states, so they vary — some states offer fee-free courses in priority areas, and all offer government-subsidised training. Approved diploma-level courses can be funded through a VET Student Loan, repaid under the same income-contingent HELP system as HECS. The overall HELP loan limit for 2026 is about $129,883 for most students, which covers all HELP borrowing (HECS-HELP, FEE-HELP and VET Student Loans combined) over a lifetime.

Figures are indicative 2026 national averages and ranges, compiled from government and sector sources; individual schools, courses and states vary. This is general information only, not personal financial advice. Use the education cost calculator above to model your own situation.