Family Sacrifices Increase As Australia's Cost Of Living Soars

Families are struggling, and the cost of living is growing.

What you need to know
  • Sydney is our most expensive city, rising in the world rankings up to number 32
  • Melbourne, Adelaide and Hobart also rose
  • The school holiday period is identified as one of the toughest for families

Aussie families are struggling, and making sacrifices to contend with the soaring costs of living  in Australia.

The cost of living in Melbourne, Sydney, Adelaide and Hobart has gone up, especially compared to the rest of the world.

Sydney – proudly boasting the title of Australia's most expensive city – has risen to number 32 in this year’s Cost of Living index – up from number 41 last year.

According to the stats from Numbeo.com, Melbourne also got more expensive – up to 64, from 77, while Adelaide, Cains, Hobart and Canberra rose in the ranks.

A new survey from the NRMA has found that almost half of Australian families (48 percent), have seen cost-of-living pressures jump by more than 10 percent in the last year.

As a result, a staggering 71 percent of Aussie families are sacrificing leisure activities and dining out, just to afford a family holiday.

Living in Melbourne has also gotten more expensive, with a rise to number 64 (IMAGE: Getty)

According to the NRMA, 60 per cent of Australian families can only afford to take children on one holiday per year, with three-quarters of families having a budget blowout in the school break.

Melanie Fernandez, from the NSW Council of Social Services, said many families in our capital cities are facing harder and tougher times.

"Families are having to make really difficult decisions, often about medical treatments they can provide, or food they can put on the table."  

"It's harder and harder to put healthy food on the table and give kids the good start in life they really want," Ms Fernandez said.

The school holiday period has also been highlighted as a danger period for many families, who might feel guilty for not being able to provide enough activities for the kids.

“They’ve got the kids at home and that might drive up the energy costs, the food they’re buying… but also the activities the kids might need to get into.

"Families struggle to provide activities for their kids that are going to be engaging with sporting groups, to do something entertaining... those costs can be really significant."

It might shock you – or sadden, depending on where you live – to know that London is actually rated more affordable than Sydney, checking in at number 42.

Hamilton: Ranked the world's most expensive city once again (IMAGE: Hamilton Princess & Beach Club)

It’s no surprise that New York is the 14th most expensive city, or that Paris is number 23.

Hamilton, in Bermuda, once again claimed top spot, while Swiss cities (Zurich, Geneva, Basel and Bern) dominate the top five.

Most expensive cities:

  1. Hamilton, Bermuda
  2. Zurich, Switzerland
  3. Geneva, Switzerland
  4. Basel, Switzerland
  5. Bern, Switzerland
  6. Lausanne, Switzerland
  7. Reykjavik, Iceland
  8. Stavanger, Norway
  9. Lugano, Switzerland
  10. Oslo, Norway