What is household expenditure measure?
HEM is a benchmark of typical household living expenses by household size and income — lenders use it as the floor when you declare expenses lower than the benchmark for your household type.
The Household Expenditure Measure (HEM) is a statistical benchmark of typical living expenses published by the Melbourne Institute, segmented by household structure (single, couple, with/without dependants), location (city vs regional) and income band. Lenders use it as a minimum: if your declared expenses are lower than HEM for your household type, they substitute the HEM figure.
HEM tends to land around $2,000-$2,800/month for a single adult and $3,500-$5,500/month for a couple with two dependants, depending on income band. Higher-income households face higher HEM floors because the data shows higher-income households spend more.
Borrowers with disciplined budgets can sometimes get the bank to accept declared expenses below HEM by providing 3-6 months of statements showing the lower spending pattern. Most lenders are reluctant to go far below HEM and any concession is conditional.
HEM · household expenditure measure · living expense benchmark
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General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.