Australian and New Zealand cities attractive for expatriates: Mercer 2023 Cost of Living Survey 

Australia, 28 June 2023 -  Mercer’s 2023 Cost of Living Survey has found that despite current local inflationary pressures and rising interest rates, major Australian and New Zealand cities remain competitive options for international organisations to send expatriates.

According to the Survey, New Zealand cities in particular are becoming more affordable expatriate destinations compared to global counterparts, with Auckland dropping 16 places to 111 and Wellington 19 places to 139, over the past 12 months. The drop indicates the relative cost of living for expatriates, compared to other key cities around the world, is improving.

The falling trend holds true for Melbourne (71) and Perth (107), which dropped four and 10 places respectively, suggesting both cities are viable options for international businesses to send their workers.

While Sydney (56) – still the most expensive city in Australia - and Brisbane (82) have both risen two places in their current rankings, they remain attractive options for expatriates in the broader Asia Pacific region.  Canberra has risen 10 places in ranking, coming in at 94th. 

According to Mercer’s Workforce Solutions Leader for the Pacific region, Cynthia Cottrell, workforce mobility is an important strategy for multinational organisations to consider in their efforts to attract and retain talent, particularly in the current economic climate. 

“Current market conditions, such as skyrocketing inflation and currency volatility are affecting international economic balances and the cost of living for many across the globe. Companies need to strike a delicate balance between controlling their costs while responding to attract and retain talent,” Ms Cottrell said.

“Talent mobility is an avenue to consider which can help to improve the global competitiveness of an organisation while also supporting the re-allocation of skill-sets and resources in their workforce. Importantly, it can foster important career development for individuals within a firm,” she added.

Several factors determine the ranking, such as currency fluctuations, cost of inflation for goods and services and volatility in accommodation prices. Further, risks and other issues also contribute, be it natural disasters, political and/or economic turmoil, high crime rates, poor infrastructure and inadequate international connectivity, which can be major deterrents to companies and their employees. 

“The most attractive locations are those which combine flexible governance for mobile talent, a high quality of life and reasonable cost of living,” Ms Cottrell said.

“For these reasons, Australian and New Zealand cities remain attractive locations for businesses to send expatriates. 

This is good news for our local employers which may benefit from a richer, more diversified talent pool, especially at a time when we continue to face a war for talent,” she concluded. 

Mercer’s Cost of Living Survey provides employers with current, extensive and reliable data to help them navigate compensation strategies for their mobile employees in the unpredictable global markets. 

To see the full 2023 Cost of Living Survey results, click here.