The State of New South Wales offers an affordable lifestyle and its capital, Sydney, is among the less expensive of the world's global cities.

Mercer Human Resource Consulting’s Worldwide Cost of Living Survey 2009 ranked Sydney equal 66th in terms of "expensiveness" from a list of 143 cities. The 2009 Cost of Living Survey results represent a dramatic decline for Sydney, dropping 51 places from 15th in 2008. According to Mercer Consulting, considerable fluctuations worldwide, coupled with the dramatic depreciation of the Australian dollar against the US dollar have been the primary factors accounting for Sydney’s significant plunge. This decline showcases Sydney as an even more affordable and competitive location compared with other major cities in the Asia Pacific region such as Tokyo (rank one), Hong Kong (fifth), Beijing (ninth), Singapore (tenth), and Seoul (fifty-one), and Taipei (sixty one).

The cost of living survey is based on the cost of a basket of more than 200 standard goods and services representing expatriate spending habits, including housing. Australia generally offers less expensive housing, food, healthcare, education, and entertainment activities compared to other developed countries.