Is it expensive to live in Australia?

So, I'm curious, is living in Australia really as pricey as people say it is? I mean, I've heard all sorts of things about the cost of housing, food, and even entertainment. Do you find that you need to have a pretty hefty income to maintain a decent standard of living there? Or are there ways to live more economically, perhaps by taking advantage of certain deals or discounts? I'm really interested in getting a clear picture of what it's like to live in Australia financially.