What is a good salary in Australia 2023 - Collect Australia (2023)

In 2023, the average monthly salary in Australia is expected to be AUD 7,570. At the April 2023 exchange rate, that equates to around $5,032 a month.

Compared to the US, where average monthly earnings are $7,900, and the UK, where average monthly earnings are $7,347, Australia has a lower average salary.

In this article we will discuss the minimum wage in Australia and the median and average income. We will also discuss typical salary increases and the variables that affect salaries. Finally, we take a look at some of the highest paying industries in Australia.

Let's jump right in.

Where in Australia can I earn the most?

The Australian Capital Territory (ACT) is the best place to settle in Australia if you want to make a lot of money, especially in Canberra. The typical weekly salary in Canberra is $1,980 - $102,986 per year.

Western Australia, Australia's second largest state, pays its residents an average of $1,896 per week, or $98,582 per year.

Tasmanians earn the lowest with a weekly wage of $1,542 and an annual wage of $80,168. Learning basic Australian English will ensure you can communicate with people wherever you settle in Australia.

The gender pay gap in Australia

In all Australian territories and states, women have a lower median income than men.

Western Australia has the largest income gap between women and men – possibly due to the large number of miners who tend to pay men more.

In terms of average earnings, the ACT remains the top choice for both sexes, while NSW is the top choice for women. It is worth negotiating a higher salary in Australia.

Which jobs in Australia offer the highest salary?

As of November 2021, Australian mining jobs are among the highest paying jobs in the country. The average salary for men in this field is a staggering $141,695, but the average salary for women is still quite acceptable at $119,928.

Central and North Western Australia are rich in mining employment opportunities, contributing significantly to the state's high total income. These are followed by opportunities related to telecommunications and information media as well as the finance and insurance industries.

Data analysts can expect an annual salary of $103,177, while investment advisors earn $117,482.

The average annual salary for building inspectors is $98,659, while electrical engineers can earn $113,410. In all jobs in the country, you must learn English for an interview.

What would a fair wage be in Australia in 2022?

The national median household income is $91,000. So full-time workers who earn more are way above average.

Although this number varies widely by location, occupation, gender, education level, and years of experience, it is often between $25,000 and $50,000 per year.

For example, software engineers in Sydney can be considered successful if their annual income exceeds $115,000. However, a woman working in the public sector must earn more than $1,820 a week to be considered successful.

The salary of a CEO in Sydney is 308,000. dollars, while the same position in Melbourne only earns 235,000. dollars.

Employees with years of experience in highly competitive professions deserve an annual salary of more than $120,000, while new hires are likely to earn between $4,000 and $5,000 per month.

In general, you should shoot for at least an average salary. A good salary in Australia can range from AUD 90,000 to AUD 108,000.

A decent benchmark for what you can earn is an average salary of $72,000 per year.

What will the average salary be in Australia in 2022?

According to the latest figures from the Australian Bureau of Statistics, the national average wage is $69,888 a year or $1,344.70 a week.

The average annual salary for full-time employees is $92,029, an increase of 1.9% over the previous year. That equates to a weekly salary of $1,769.80.

The average full-time salary is $1,835.20 per week or $95,000 per year (before tax), excluding commissions, bonuses and overtime.

For full-time employees (those working more than 38 hours per week), the starting salary is $812.60. Employers are legally obliged to pay their employees at least the minimum wage and pay pension contributions on their behalf.

Information about salaries in Australia

• There was a 50% increase in weekly earnings to an average of $1,200.
• The average hourly wage in Australia is stable at $36 as of 2020.

• Public sector workers in Australia are generally paid more than private sector workers.

Therefore, full-time private sector employees earn an average of $1,725 ​​per month, while public sector employees earn an average of $1,936 per month for an overall median salary of $1,277.

• In construction, wages increased by 3.4% annually. The industry employs over a million people in Australia.

• The June 2022 ABS report shows that the largest quarterly increase (0.8%) was recorded in Western Australia. Workers in the Northern Territory had the lowest rate in the country at 0.3%.

• Employees with 2 to 5 years of work experience earn about 32% more than those listed below, and those with 10 to 15 years of work experience earn 21% and 14% more, respectively.

• After 16 months, Australian workers will receive an 8% pay rise. Senior management salaries can increase by up to 20% annually.

• Professionals and managers in Australia earn the most per hour ($52.40 and $50.20 respectively). Workers at the bottom of the wage scale, such as cashiers and dishwashers, earn a minimum hourly wage of $21.38.

Average salary statistics and trends in Australia

The average income for Australians is A$90,800 (US$60,355) per year.

To fully understand Australia salary trends and statistics, let's take a look at some key indicators of average salary earned in Australia.

Average earnings

By 2023, the median salary in Australia is expected to be around $4,420 or A$6,650 per month.

The median salary is the salary that falls in the middle of all the numbers used. In other words, almost half of Australians live on less than A$6,650 a month, while the other half live on more.

Average salary range

A monthly salary in Australia can start at around A$1,917 ($1,274) and go up to around A$33,750 ($22,433).

However, these are rough estimates. The lowest monthly salary in Australia is less than A$1,917 and the highest monthly salary in the country is over A$33,750.

Minimum wage

The Australian Bureau of Statistics reports that the minimum hourly wage in Australia is AUD 21.38 (about $14.21).

Interestingly, the minimum wage in Australia is higher than in America ($7.25).

The UK minimum wage is £10.42 ($12.93) and still exceeds the Australian basic wage.

Note:

This is the minimum an Australian employer must offer to a part-time or full-time employee. The Fair Work Commission states that it is illegal for an employer to insert a provision to pay less than the statutory minimum wage.

The Fair Work Committee resolves disputes at the workplace.

Employer contributions to occupational pension funds are also required in Australia. Retirement means a labor market pension with additional cash benefits.

How do we assess salary increases in Australia?

The Australian Bureau of Statistics reports that the minimum wage in Australia has risen significantly over the past year, from A$20.33 to A$21.38 per week.

Salary growth every year

In Australia, workers can expect an average wage increase of 8% every 16 months.

The annual salary increase occurs once a year. However, it is not unusual for an employee to see a salary increase that coincides with the end of their first year on the job.

However, this number varies depending on the industry and the terms of the employment contract.

Estimated salary for Australia, 2022

As mentioned above, various factors affect the average monthly income in Australia. This table compares the average annual household income in Australia by gender, occupation and region.

Keep in mind that these are rough estimates, as your salary will depend on various other variables.

The gender pay gap in Australia

Although women's wages have risen faster than men's, men still take home the most money each week. Therefore, men earn an average of $1,864 per week and women earn an average of $1,600.

This is further evidence that women worldwide are struggling with the pay gap.

Due to the abundance of employment opportunities in the mining industry, where men often earn higher wages, WA has the largest gender pay gap in the country. The gender pay gap is smallest in the ACT.

NSW has the second highest number of working women as earnings are above average. In addition, the issue of compensation is under discussion.

Because they take on most of the unpaid care and housework, women experience disproportionate problems.

See how much men and women in Australia have earned on average over the past five years. Equal pay between women and men is slowly declining, but only slowly.

What is the average income of a person by age?

In Australia, one of the most important factors affecting wages is age.

A person's salary will increase with age. The highest working age in the country is 45-55 years. Since most young people are in part-time or temporary work during their school years, this means that they are financially disadvantaged.

Despite a strong labor market, young people face discrimination that prevents them from getting better career opportunities.

Here is a rough estimate of your monthly income by age group:

Australian salary levels, average, by region and state.

Not surprisingly, average wages are higher in states with a higher standard of living.

As a result, the average annual salary in the ACT, where civil servants in Canberra live, is $103,080, about $19,000 more than in SA, where the average salary is $84,390.

Here's a closer look at the wage gap between states.

According to the data, the Northern Territory of Australia and Queensland are the only two states where annual earnings for full-time workers are close to the national average.

Can you name the top five industries in Australia in terms of salaries?

The five highest paying industries in Australia are:

According to this table, Australia's five highest paying jobs have higher salaries than the national average.

In the mining industry, 83% of workers are men - earning $444 more per year than women. Although women make up the majority of health and social workers, men earn $2,049 more per year than women ($1,595).

The lowest average weekly wage is in the accommodation and food service sector, at $1,220. It also has the youngest workforce with 45% of employees under the age of 25.

Income distribution by education level

A person's salary in Australia can vary depending on their level of education. Workers with a college degree can expect to earn higher wages than those with only a high school diploma.

Below is the average earnings for August 2021 broken down by education level.

Of course, those with a Ph.D. or a master's degree more than those without a degree, but these degrees are expensive. The annual cost of postgraduate study in Australia ranges from $37,000 to $114,000.

However, you must keep in mind that there are jobs you can do without an education or previous experience that can pay well.

Jobs that pay well above standard wages but don't require a college degree include airline controller ($257,000) and construction manager ($153,000), including cement mixer ($109,200) and truck driver ($27,400). USD).

Best paying jobs here in Australia

Surgeons have the highest salaries in Australia, more than twice the national average income.

Here's a deeper dive into the 5 highest paying jobs in Australia.

Bonuses and overtime

Overtime pay for Australian workers is statutory at 150% of the basic hourly wage after two hours and 200% after four hours of overtime. Bonuses vary widely by employer and industry, but often range from 6% to 10% of base salary.

Tell the ATO about any additional overpayments, such as bonuses or overtime income, that you receive.

If you want to make your life easier in Australia, how much do you need to earn?

The national average cost of living varies by state and family size. A person would need about $2,000 and $3,537 a month to live on a budget (not including housing costs).

But if you want to live comfortably in Australia, a salary of $4,000 a month will get you there. Renting a studio and spending $200 on groceries and $10 on entertainment will help you on your way to stability.

A family of four in Australia apparently needs a minimum monthly income of $6,600 (or $4,905 excluding rent) to live comfortably.

How acceptable is an annual salary of AUD 100,000?

In most regions of Australia, an income of AUD 100,000 will be more than enough to cover basic expenses.

A salary of between $80,000 and $100,000 is enough to maintain a comfortable standard of living in Sydney and other major Australian cities. It is above the norm in this regard.

After paying tax on your A$100,000 salary, you will receive approximately A$75,813 or A$6,259 per month.

Whether you live alone or support a family, this amount will allow you to live comfortably.

Is it possible to live comfortably in Australia and earn 150,000 AUD?

In Australia, a salary of AUD 150,000 is very successful. This is an income between the upper middle class and the rich. That's enough money to live comfortably anywhere in the world. In 2021, the average annual salary for a full-time employee in Australia was A$90,329.

Additionally, if your annual household income is AUD 150,000, you are in the top 10 per cent of Australians. With that money, two people can have a great life together without going overboard.

This income level is sufficient for a household with children, but leaves little room for savings or discretionary spending. Remember that the average cost of living in Australia's biggest cities is rising much faster than wages.

What is the average annual income in Australia?

A bachelor's degree holder in a typical Australian city can expect a middle-class annual salary of around A$90,000 tax-free.

Income varies greatly from person to person and depends on factors such as employment, working hours, level of education and, to a lesser extent, geographical proximity.

Australians of different ages, races and genders have different average incomes. Of this, the average salary in Australia is around AUD 45 per hour.

In Australia, a comfortable standard of living requires an annual household income of at least A$50,000. While the highest paid Australians can reach A$136 an hour, the lowest paid earn around A$20.

As a result, earnings in Australia vary greatly depending on factors such as industry, level of education and years of experience.

How much do Australians spend on average per month?

Rental income

A one-bedroom rental in the heart of a big city costs at least $1,000 a month or more.

Home purchase mortgage payments can range from $1,728 to $1,993 per month, depending on factors such as loan-to-value (LTV) ratio and interest rate.

Mad

According to the latest figures, a typical Australian family spends around A$608 a month on food. In a mid-range restaurant or restaurant, expect to pay $100 to $150 for a full meal for a couple. Domestic beer averages around $8 and coffee around $4.

Fuel

Fuel accounts for the bulk of transport costs, costing around A$100 per month in October 2022 and continuing to rise. For the first time, weekly fuel costs for Australian households exceeded A$100 in August.

The average annual cost of maintaining two cars per household is $16,912.

Tools

The typical annual electricity price in Australia is AUD 1,645.

The monthly price of AUD 250 includes gas, internet and water. For example, the monthly cost of internet connection is AUD 77, the cost of a mobile phone bill is between AUD 50 and AUD 80, and the cost of water is around $200 each quarter.

Leisure activities

Most of the A$4,500 a year Australian households spend on entertainment is spent on streaming services and video games. 80% of Australians have used a video streaming service at least once this year, up from 62% in 2017.

Medical assistance, insurance and costs

Health insurance costs A$166 a month out of the average Australian annual health budget of A$7,926.

Holidays

In the last six months of 2020, Australians spent an average of A$385 on domestic travel due to closed borders, but this rose to A$5,072 for international holidays.

While most Australians spend between $4,000 and $5,000 on an annual overseas holiday, there are a few budget destinations available from home that can reduce that sum.

Australian tax system

Australia has a minimum tax rate of 34.5 percent and an average tax rate of 15.4 percent. An annual salary of $50,000 would result in a tax liability of $7,717.

Income tax and Medicare contributions are $6,717 at the standard tax rate of 15.4%. If your marginal tax rate is 34.5 percent, 34.5 percent of the hundred dollars you collect will go to the government. This means your salary will only increase by $65.50.

Taxes in Australia

In Australia, the tax rate can vary from 19 to 45 percent. The higher rate applies to earnings over $180,000.

Compared to most European countries, taxation in Australia seems more reasonable. Here's a quick overview of the four different types of tax Australian workers have to pay.

Income tax

It is Australia's main tax source and consists of three components: income from wages and businesses, investment income and income from the sale of assets.

All money you earn is subject to income tax, whether it's wages, business profits or investment returns. Profit from the sale of real estate is subject to the same taxation.

Tax deductions for the middle class and the poor

The Low and Middle Income Tax Credit (LMITO) reduces the effective tax rate for middle and low income Australians. This tax burden is not an advantage, but it can eliminate your tax liability. The amount of compensation depends on your situation.

Here are the requirements to become a member of LMITO:

• You must be a legal resident of Australia.
• Your earnings are taxable.
• There are minimum income requirements you must meet.

You can reduce the amount you have to pay with the deduction you receive when you become eligible and file your tax return.

medical care

Medicare taxes help pay for public health programs. Your Medicare tax is usually 2% of your earnings, but you or your spouse may be eligible for an exemption or a reduced rate. After you file your tax return, the Internal Revenue Service will determine your Medicare premium.

Labor taxes

Income from wages and tips is taxable by both the company and the employee. Unemployment insurance, Medicare, and Social Security are social security programs that receive payroll taxes.

How much tax a person has to pay depends on their income level. On the one hand, wage earners pay a different tax rate than the self-employed.

Foreigners may be subject to different tax rates than locals, depending on their country of origin.

What qualifications are needed to find a job in Australia?

Here are the basics of working in the country as a migrant.

1. Obtaining a working holiday visa

This is the first and most important need to find a job in Australia. Work and travel across the country with the flexibility of a 1-year work visa. Here are some of the most basic visa requirements:

• You must be an adult.
• You must document that your passport is from a valid country.
• Minors are not allowed to join you.

2. Tax register number

To start working in Australia, you need to obtain an Income Tax Registration Number. When you start working, you will be subject to a high tax rate of 46 percent if you do not have a tax identification number.

3. An Australian bank account

You can open a bank account online or at a physical branch in Australia. You will need your passport number, Australian address and proof of work and income to open an account.

To summarize,

The annual cost of living for a person in Australia is at least AUD 90,000. The sum varies by person, city and family.

Finding a job that pays at least the national average hourly wage for your industry, occupation and location is a solid starting point.

Frequently asked questions

Is an annual salary of $75,000 considered good in Australia?

Although some people make millions of dollars a year, the average salary is only $75,000. Adjusted for inflation, more than 70% of taxpayers have incomes below the median. Including pensioners in this calculation shows that 80% of Australians have a below average income.

Is AUD 50,000 a decent salary?

Taking home just 50,000 AUD a year isn't much. Location and desired lifestyle are of course also important factors. Do you want to live life to the fullest? You should aim to contribute at least AUD 150,000 per year.

How much does the middle class earn in Australia?

In Australia, the middle income class makes up about 58% of the population.

Where does Australia's middle class typically rank in terms of annual income?

The middle class in Australia typically earns between $46,000 and $140,000 a year.