I moved to Australia over a decade ago, and I never looked back. That experience and life as an expat is actually what prompted me to start this blog. My goal is to create invaluable resources for travellers and expats across the globe.
And while Australia will always be my first love, I’ve recently found myself being wooed by another country – Japan.
So this is my full guide on Japan vs. Australia’s cost of living and how to choose the right option.
Now let’s get to it!
The Cost of Living In Japan
Moving to Japan is an exciting adventure – and a popular one at that. According to The Japan Times, the number of foreign nationals in Japan now exceeds 3 million people! While the country is still largely Japanese, it’s still a growing trend to keep an eye on.
So let’s look at what you can expect to spend if you decide to join the millions of other people who already call it home.
Rent + Utilities
Average rent in Japan (not including utilities) is between 50-70,000 yen for a one-bedroom apartment (~480-675 AUD). As you move into the city centre however, this price jumps up to around 100,000 yen (~950 AUD).
Utilities for one person in Japan are about 12,000 yen (115 AUD). It’s also worth noting that you can save on rental costs and utilities if you decide to live in a shared house, which there are plenty of in Japan.
Food
The average cost of food in Japan is around 40,000 yen monthly (385 AUD).
As for eating out, you can expect to spend anywhere from around 3,500 yen up to 10,000+ yen, depending on where you go and how much you eat.
In my experience, eating out in Japan (at modest places) tends to be cheaper than in Australia. I could find plenty of shops that had big bowls of ramen for just 1,000 yen or so, even in Tokyo. Often, this was enough to keep me full for most of the day.
Transportation
Most people in Japan use the trains for transportation. They’re highly efficient and extremely reliable. I’ve never even experienced any delays during my visits.
As a resident, you won’t be able to buy tourist train passes (like the JR Pass). But you can buy a commuter pass, also called teikiken in Japanese. These cost, on average, around 12,000 yen per month (115 AUD), making public transportation in Japan very affordable and convenient.
The Cost of Living In Australia
While moving to Australia was one of the best decisions I’ve made, it was also a bit overwhelming at times. But one thing that helped me stress less was knowing how much money I would need.
So let’s look at Australia’s cost of living.
Rent + Utilities
You can expect to pay around 2,500 AUD for rent in a city centre like Sidney (~260,000 yen). This price comes down the more you move out of the city, but rent still tends to be higher than in Japan.
For utilities in Australia, the average cost is around $300 per month. But this also fluctuates depending on your location.
Food
The average shopper in Australia spends around $532 per month. For eating out, I usually spend anywhere from $10 (on the budget end) up to $40+ per person. Ultimately, food costs and eating out tends to be more expensive in Australia than in Japan.
Transportation
According to the Australian government, more than two in three Australians drive to work. Naturally, this will inflate your transportation costs while living there.
So it’s important to consider these additional costs you may incur, such as owning a car and the gas required to get to work. According to ABC, the average cost of transportation and owning a car in Sidney is just under $28,000.
For these reasons, Australia is more expensive than Japan when it comes to transportation.
Japan vs. Australia Cost of Living: 4 Key Differences
There are some key distinctions between Japan and Australia’s cost of living. So here are the main differences, some of which we haven’t yet covered.
You’ll Probably Make More Money In Australia
Australia’s minimum wage is much higher than Japan’s – one of the highest in the world, in fact! But Japan’s wage growth has been pretty slow and misaligned with other major industrialised countries.
While there’s been recent progress, it’s still a problem many workers face. As for salaried workers, Japan’s average income hovers around $30,000 while Australia’s average salary sits close to 90,000 AUD.
Takeaway: If income and wage are important factors for you, Australia is the winner.
You’ll Probably Spend Less Money In Japan
According to Numbeo, the cost of living in Japan is 33% less than Australia (not including rent). And based on my own experiences visiting Japan and living in Australia, I can concur that Japan is indeed more affordable.
I found myself spending much less money in Japan overall, even as a tourist. Many things were just cheaper, such as eating out and getting around by train.
Takeaway: If living cheaper and spending less money is a priority, Japan is the better choice.
Potentially Less Growth Opportunities In Japan
Income and business opportunities in Japan are different from Australia, which can influence your individual cost of living.
The language barrier and a more dramatic cultural gap are two of the most obvious barriers for starting a business or growing within a company.
While I’ve met entrepreneurs and happy workers in both countries, Australia will be easier if you’re a native English speaker from a Western country.
Takeaway: If you want more income control or to start a business, Australia may be better.
The Cost of Moving to Japan Is Cheaper
While this can vary depending on each person, the cost of moving to Australia is slightly higher than moving to Japan.
Australia will cost you anywhere from 10-20,000 AUD to get settled in, while you can move to Japan for less than $5,000 (around 8,000 AUD).
So Japan can offer expats the benefit of cheaper startup costs for moving to a new country.
Takeaway: If you want to save money on moving, Japan may be the cheaper option.
Should I Live In Japan or Australia? 4 Tips to Help You Decide
At this point, you may already have a clearer picture of where you want to live. But if you’re still on the fence, here are some helpful cost-related considerations.
1. Consider Your Lifestyle & the Budget Required
As you know, your lifestyle and the budget required for that lifestyle play a big role in the cost of living. So this is an important factor to consider.
For example, if you’re like me and like to take many trips abroad, you can expect to pay more if your main salary is in yen, given its current weakness (as of June 2024).
While the weak yen may be temporary, it’s been a prevalent issue for many expats I’ve spoken with living in Japan. So in this case, Australia may be better suited for you.
2. Think About the Work Culture
Japan’s work culture is notoriously demanding. Long work hours and a strong seniority hierarchy can make it a stressful working environment for many expats, who may be accustomed to a more relaxed work environment.
So while the cost of living may be lower, the time you spend working and feeling the burden of overwork may be higher. This is an important aspect to think about and can influence your happiness and cost of living beyond finances.
Put another way, working more hours is commonplace in Japan, but that often doesn’t translate to more money, especially for salaried workers. While tides are shifting, change is slow.
3. Go Where You Have the Most Relevant Job Opportunities
Japan and Australia each provide unique career opportunities with varying pay scales. So depending on your skills, goals and interests, this may be a deciding factor for you.
For example, if you can speak Japanese at around an N2 level and you have high-value skills (in programming or software engineering, for example) then you can find some pretty solid and lucrative jobs in Japan.
However, if you’re moving there to teach English with no experience, I’ve heard from some English teaching friends of mine that it can be difficult to find higher-paying positions. And even when you do, the growth within that company usually has a hard cap.
A lot of the more exciting opportunities in Japan will require language skills and/or specialised knowledge. If you’re curious to know more about job opportunities in Australia though, then be sure to check out this post!
4. Factor In Location
Regardless of whether you live in Japan or Australia, your location will greatly impact your cost of living.
Because living in a smaller Japanese town will be much cheaper than living in central Tokyo. Similarly, opting for an apartment directly in Sydney or Brisbane will of course be more expensive than living on the outskirts of the city.
So when calculating your cost of living, consider where you want to be and explore the different options available for each city and country. Also be sure to look into train options and commuting convenience to help guide your cost of living analysis.
Wrapping Up
Japan and Australia are two incredible countries for expats looking to experience a new culture and fresh opportunities. However, each one has its own set of pros and cons.
While Australia’s pay is higher, it’s also more expensive to live in and move to. However, if you don’t speak Japanese and you have specific career goals, Japan may be more of a challenge for you.
Ultimately, it’s important to consider your lifestyle, budget requirements, goals and where you plan to live. All of these factors can impact your cost of living.
But rest assured, wherever you decide to live, I’d be happy to call either one my home.
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