Budget guide

Updated 27 January 2026

What percentage of income goes to groceries in Australia?

How much of your income should you spend on groceries in Australia? Data by income level plus international comparisons.

How much should you spend on groceries?

Financial advisors and the OECD suggest that healthy spending on food sits between 10 and 15 per cent of household income. This leaves room for rent, utilities, transport, and savings. When groceries consume more than 30 per cent of income, most households enter "food stress" territory: they struggle to afford fresh produce, proteins, and nutritious meals while meeting other essential costs.

The percentage you spend depends entirely on your income level. Someone earning minimum wage faces different constraints than someone on an executive salary. Let's break down the real numbers.

Grocery spending by income level in Australia

The Australian Bureau of Statistics shows clear patterns when you split households by income quintile. The gap between the lowest and highest earners is substantial:

The challenge for lower-income households is clear: they spend three to four times the percentage of their income on groceries compared to high earners. This is why finding deals matters most for households with tight budgets.

What about JobSeeker and Centrelink payments?

People relying on JobSeeker (around $390 per week) face acute food stress. On that payment, a weekly grocery budget of $80 to $120 represents 20 to 30 per cent of total income, leaving little for rent, transport, or other essentials. Age Pension recipients face similar pressures. These households cannot afford to overspend on groceries by even a small amount.

Minimum wage households

A full-time minimum wage worker in Australia earns roughly $28,000 per year (approximately $540 per week after tax). On that income, a $100 to $150 weekly grocery budget represents 10 to 14 per cent of take-home pay. Close to the OECD recommendation, but with zero margin for error if other costs rise.

How Australia compares internationally

Australia sits in a strong position globally. The OECD average for food spending is 12 to 15 per cent of income, and Australia is below that at roughly 10 to 12 per cent across the whole population. The United States sits at the extreme low end (around 6.7 per cent), whilst the United Kingdom spends about 8.2 per cent. Countries like Poland, Mexico, and India see households spend 25 to 40 per cent of income on food.

Australia's below-average food spending is a positive sign, but it masks regional variation and the struggles of lower-income households. Online inflation tracking and price awareness tools help narrow the gap.

The 30 per cent food stress threshold

Research and welfare organisations consistently identify 30 per cent as the breaking point. When a household spends more than one-third of income on food, it typically cannot cover other essentials: rent, utilities, transport, childcare, or medicines. Households in food stress make trade-offs that create longer-term health and financial harm, such as buying cheaper ultra-processed foods or skipping meals.

If your household is spending more than 30 per cent of take-home income on groceries, it is worth investigating whether prices are the issue, or whether your household income needs to be reviewed (eligibility for support payments, second income, or financial counselling).

What influences your personal grocery percentage?

• Family size: Larger families have lower per-person cost but higher absolute spend.
• Dietary requirements: Organic, gluten-free, or specialty diets cost more.
• Location: Remote areas and some suburbs have higher food costs due to transport and competition.
• Food waste: Meal planning and smart shopping reduce waste and cost.
• Retail choice: Supermarket, farmers market, and discount grocer prices vary significantly.
• Convenience foods: Pre-prepared meals and takeaway inflate the budget.

Many of these factors are within your control. Even a 10 per cent saving on groceries via better pricing frees up $8 to $15 per week for most households.

Practical steps to manage your grocery percentage

If your grocery spending is higher than your income level suggests, consider these approaches:

• Track actual spend: Most people underestimate grocery costs by 15 to 20 per cent. Use your bank or a budgeting app for one month to get the real number.
• Compare prices across retailers: The same items cost 20 to 40 per cent more at different supermarkets. Use Pinch to check prices before you shop.
• Plan meals first: Write a weekly meal plan, then build a shopping list. Impulse purchases inflate budgets.
• Buy generic brands: Home brands are often identical to premium brands but cost 30 to 50 per cent less.
• Buy seasonal produce: Seasonal fruit and vegetables cost 20 to 50 per cent less than out-of-season imports.
• Buy in bulk (carefully): Bulk discounts only work if you use the product before it spoils.
• Cut food waste: Use your freezer, eat leftovers, and plan around what you already have.

For households in food stress, a combination of these steps can reduce grocery spend by 15 to 25 per cent, moving spending from 30+ per cent to 20 to 25 per cent of income. That might not sound like much, but it equals $50 to $100 per week freed up for rent, transport, or savings.