After 17 Years Visiting Australia, I'm Still Surprised By 5 Ways Dealing With Money Is Different From The Us

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Cheryl Lock

• I'm an American married to an Australian who visits his home country regularly.
• In Australia, a lot of things are more expensive than in the US: food and gas especially.
• However, there's no tipping or surprise taxes.

When I met a cute Australian boy at a New Years' Eve concert in New York City 17 years ago, I never in my wildest dreams imagined that we'd someday be married, living in Colorado with our three dual-citizen daughters.

And yet, here we are!

Marrying an Australian has brought a lot of surprises. (Tim Tams: Good! Vegemite: Bad.) It's also brought seven trips Down Under for me (three with kids, four without), and a whole lot of observations about how certain financial scenarios differ between our home countries.

It goes without saying that I'm no expert in Australian financial policy. What I am is an American personal finance writer who has spent quite a bit of time in Australia.

Our most recent trip was this past summer. We were there for 30 days and visited seven different Australian locations. During the trip we stayed in Airbnb's, rented cars, flew from location to location within the country, dined out and went grocery shopping.

I came away from that longer trip with plenty of additional observations about money differences between America and Australia. (And an appreciation for how the exchange rate made costs that we put on our American credit cards much lower.)

These were the most interesting money scenarios I came across.

1. Physical cash is easier to use

The most obvious comparison is the difference in physical cash. Different amounts are different colors ($1s, $5s, and $10s are blue, $20s are red, $50s are yellow, and $100s are green), so it's a lot easier to find what you're looking for than a wallet full of American cash.

The coins are similar to ours — 5 cents, 10 cents, 20 cents, and 50 cents — but there are also $1 and $2 coins. The dollar coins are gold (compared to cents, which are silver), and the $2 coin is smaller, but heavier, than the $1.

2. Food and beverage costs are outrageous

Chris and I hardly get out these days with the three girls to look after. So, when my stepdad (who was traveling with us this summer in Australia) said he would watch our kids for a night so we could grab dinner, we jumped at the offer. Out we went to a fancy little restaurant in a trendy Melbourne neighborhood. We ordered the pre-set menu with wine pairings for two.

When the bill came, we collectively gawked at the $430 price tag. (It came to $274.76 on our American credit card, which was easier to digest, though still pretty expensive.)

Several factors have led to high food prices in Australia, both in grocery stores and when eating out. Although prices peaked in December of 2022 — when the average shopping basket cost 9.2% more than it did in 2021 — lingering issues related to the pandemic, climate disasters like floods and bushfires, and international conflicts have all contributed to overall rising costs in Australia.

Aussies themselves admit that it's expensive to eat in Australia, with 70% of Australian shoppers in one survey saying that they felt grocery and related products were more expensive in April of 2024 than in the previous year.

3. Tipping doesn't exist

Since the food and drink is so expensive, it helps that tipping is basically non-existent in Australia. If you've had a particularly delightful experience — or just feel weird not doing it because, as an American, it's ingrained in you — no one is going to stop you. But Australians themselves aren't likely to be leaving a tip on any of their bills.

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4. Gas costs are even higher than in the US

Australia exports approximately 80% of its gas. This tends to lead to higher gas prices at home as the country competes with global export prices for their own supply.

Most of the times we visit Australia we're able to get around by either traveling with family or borrowing a car for short distances. Our summer trip was different. Since we spent a good chunk of time either traveling with our own little family of five, or traveling with Aussie families but away from where they lived and had cars, we rented cars quite a bit. Americans often complain about gas costs, but Australian gas costs are higher.

As of December 2024, the price of gas in Australia was approximately $1.04 USD per liter. In America, gas cost approximately $3.008 per gallon, or approximately $0.7946 per liter around the same time. That might not seem like a huge difference, but when you're filling up frequently on multiple trips around the country, it adds up quickly.

5. Taxes are never a surprise

One thing that's nice about paying for goods in Australia is that the amount you see on the price tag is the amount you pay at the register. Tax is added into the amount displayed, so there are no surprises — like there often is in America — when you get up to the register and tax adds another bulk to your cost.

Despite potentially higher costs, Australia is a beautiful country that's well worth visiting. The beaches are gorgeous, the people are the kindest, the food is delicious, and the koalas are the cutest. Be prepared to budget for added costs (and to put most things on credit cards to make the most of the exchange rate) and you'll have yourself an experience that's sure to be unforgettable.

Don't know where to start? Consider a financial advisor.

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