Moving to a new country is exciting, especially for those after better opportunities. However, you need to know what to expect, especially in terms of income.
What is a good salary in Australia?
A good salary in Australia is $5,000 to $6,000 per month or $60,500 to $72,500 per year. The national average income is $60,500 per annum. If living in major cities like Melbourne and Sydney, expect to earn around $100,000 per year or more depending on your experience.
Australia is expensive, so you need to earn more than you spend, but living a comfortable life is possible.
If you’re already in Australia or planning to relocate, this article is your ultimate read. I’ll discuss a good salary in Australia based on experience level, occupation, gender, and age, so don’t miss it!
What is a good salary in Australia?
A salary of approximately $72,500 is considered a good salary in Australia. This amount can cater to your basic needs and afford a comfortable life.
According to salary analysts, the average salary for an Australian is $60,500. However, you can earn more if you’re a dentist, surgeon, or anesthetist.
If you live in a major city, it’s possible to earn $100,000 a year because these cities have a strong job market thanks to the many relevant industries. A salary of at least $5,041 per month is enough for a single person and $6,041 for a family of four.
Just like in any other country, a good salary in Australia will depend on your level of education, the industry you work in, and more. Achieving a salary of $100,000 is easy if you’re experienced and qualified in a highly competitive industry.
Australian salaries
There is more you need to know about salaries in Australia. A salary above $130,000 is considered a reasonable amount in Australia.
Up to 75 percent of all the workers in the country earn at least $52,500 per year before taxes, which is about a net of $46,500. About 25 percent of workers make $1,770 per month, which is below average.
Here are some more essential facts about salaries in Australia:
- Women earn less than men by 14 percent.
- The hourly earnings as of 2022 were $36 per hour.
- Professionals working 38 hours a week earn $4,668 a year, which is $1,167 per week.
- The construction industry registers a very high percentage of salary growth.
What is the average salary in Australia by industry?
There are different salary brackets in Australia depending on your industry. However, the below sectors have dominated wage growth over the past four years.
The mining industry has the highest average salary of $1,800 per week. Hand, food, and accommodation services have the lowest average salary of $330 per week.
Below is a list of average salaries per annum in various industries.
| Industries | Salary |
| Childcare & Education | $65,300 |
| Architecture & Creative Arts | $59,338 |
| Architecture & Creative Arts | $59,338 |
| Accounting, Administration & Human Resources | $60,400 |
| Banking, Finance & Insurance | $65,700 |
| Engineering | $73,980 |
| Healthcare, Pharmaceutical & Social Services | $67,800 |
| Journalism & Translation | $54,250 |
| Hospitality & Travel | $58,700 |
| Law Enforcement & Security | $53,780 |
| Marketing & Sales | $61,430 |
| Science | $68,560 |
| Marketing & Sales | $61,430 |
| IT | $70,840 |
| Construction & Maintenance | $57,390 |
The above list represents a combination of salaries for different jobs in the listed industries. This, therefore, doesn’t indicate what you will earn in a specific job.
What is the average salary by age?
Age is another significant factor that determines salaries in Australia.
The younger a person is, the lower they will be paid. People aged between 45 and 55 years earn the most in the country. This means that young people are not favored in terms of salaries, and this can be linked to job types since most of them work as casual workers as they study.
However, considering the strong labor market in the country, young people can enjoy better employment opportunities were it not for the discrimination in the country.
Below is a guide to how much people earn per age in a month:
| 20 and below | $381.5 |
| 21 to 34 | $1,128 |
| 35 to 44 | $1,500 |
| 45 to 54 | $1,545 |
| 55 and over | $1,375 |
The average Australian salary by gender
The average income for Australians is also impacted by gender.
Although the weekly pay for women continues to rise faster, men are still the top earners in the country, with an average weekly salary of $264 higher than that of women. Thus, the weekly earnings for men are $1,864, while women earn $1,600.
This confirms that women in all states are disadvantaged regarding salaries.
Western Australia has the biggest gender pay gap thanks to the numerous mining jobs where men enjoy the most significant salaries. The ACT state has the lowest gender gap, with men and women earning almost the same.
New South Wales is the second-best state for women since their pay is pretty decent. Besides, you can negotiate your salary here.
Women suffer more because they take up a significant share of unpaid domestic and caring work.
Below is a guide to the average salaries men and women have earned in Australia for the past five years. Although the gender salary gap is narrowing with time, its progress is slow.
| Year | Males | Females |
|---|---|---|
| 2018 | $1,736 | $1,513 |
| 2019 | $1,768.7 | $1,550.62 |
| 2020 | $1,830 | $1,640 |
| 2021 | $1,878 | $1,688.8 |
| 2022 | $1,920 | $1,750 |
The average Australian salary by education level
Education level is another factor that determines salaries in Australia. Workers with a high level of education earn more than those with only a high school certificate.
The data below is a guide to the average salaries based on education level in 2021/2022.
| High school | $33,591 |
| Certificate III to IV | $34,990 |
| Diploma | $40,365 |
| Bachelor’s degree | $49,420 |
| Master’s degree | $57,835 |
| Doctoral degree | $69,267 |
The table above is only a general guide. The actual salary for an employee may be higher or lower based on the company that has employed them and their position.
However, statistics show that certificate and diploma holders earn 17.6 percent more than employees who reached the high school level.
Similarly, employees with a bachelor’s degree earn 28 percent more than diploma holders. Postgraduate employees make up to 45 percent more than those without tertiary education.
How is the annual salary increase in Australia?
The average salaries in Australia are increasing, but the rate of increase depends on the industry, government regulations, and prevailing market rates, among other factors.
The data below indicates the salary increment rate per year for various sectors in 2021 according to Salary Explorer[1].
| Industry | Growth rate |
|---|---|
| IT | 3 % |
| Banking | 4.1 % |
| Healthcare | 7 % |
| Energy | 8.5 % |
| Construction | 6 % |
| Travel | 1.9 % |
| Education | 1 % |
Which are some of the highest-paying professions in Australia?
Number one on the list of highest-paid workers in Australia is professionals in the mining industry with a salary of not less than $110,670 per year.
Those in entry-level positions make $92,600 annually, while most experienced mining workers make $160,000 yearly. You will find many mining jobs in western Australia’s central and northern parts.
Computer experts are second on the list of highly-paid professionals earning a full-time salary of $105,000. If you’re a software programmer or engineer, you have a great career opportunity in Australia.
The other top-paying professions include science, technology, and finance. Well-educated public servants also boast huge salaries and favorable benefits.
Which Australian state has the highest average salary?
The Australian Capital Territory or ACT is the most consistent performer in the highest average salary in Australia.
In approximation, the average income in this state is $1,983 per week, with public workers earning more than private ones. For instance, a male public worker earns $2,080, while a private one makes $1,830 per week.
Western Australia takes second place thanks to the many mining jobs mentioned above, with an average income of $1,890 a week or $90,720 per year.
The state with the lowest salaries in Australia is Tasmania, with an average weekly wage of $1,440, totaling an annual salary of $69,120.
Read more >>
What Is a Good Salary in Sydney?
What Is a Good Salary in Melbourne?
Australian taxes
The tax rate in Australia ranges between 19 and 45 percent. The latter rate is charged on income exceeding $180,000.
Australian taxes are lower compared to European countries. Employees in Australia pay four types of taxes, and here is a brief discussion of each.
Income tax
This is the most significant tax in Australia, and it’s made up of three pillars: personal earnings, business earnings, and capital gains.
Income tax is deducted from a person’s income, including salary, business profits, and investment returns. This tax is also charged on money gained from a property sale.
Low and middle-income tax offset
LMITO is a tax that eases the cost of living for Australians with low and middle incomes. This tax is not a bonus payment but can reduce your taxes to zero. Your circumstances determine the amount to be offset.
Below are the eligibility requirements for LMITO:
- You must be an Australian resident.
- You must pay tax on your income.
- Your income must be below certain income thresholds.
Once you’re eligible, the offset amount you will be given will reduce the amount you’re supposed to pay when you lodge your tax return.
Medicare
Medicare tax is used to cater to the costs of public health. This tax is usually two percent of your income, but you may get an exemption or reduction from the tax depending on your or your spouse’s circumstances. The Medicare levy is calculated after you’ve lodged your income tax return.
Payroll taxes
These are the taxes employers and employees pay on salaries, wages, and tips. Payroll tax is used to finance social insurance programs like Medicare, social security, and unemployment insurance.
The amount of tax an individual pays is determined by their income and how they get it. For instance, employees with salaries are taxed differently from those whose earnings come from business.
The tax office determines the rates imposed on foreigners, which may vary depending on your home country.
How much money is enough to live a comfortable life in Australia?
A monthly salary of $6,000 is enough for a comfortable life in Australia. If you desire to have a luxurious life, you will need $100,000.
However, this depends on your location and the type of lifestyle you want. Some places are more expensive than others, especially in terms of accommodations. By living in the city outskirts, you will spend less and save more.
Conclusively, aim to earn $72,000 a year if living in the countryside or a small town or $100,000 in a major city.
Undoubtedly, living a comfortable life in Australia is possible because the salaries are high, especially in the major cities.
What do you need to work in Australia?
Below are the essentials you need to work in Australia as a foreigner.
1. A working holiday visa
This is the first and most crucial thing you need to work in Australia. A working holiday visa is a one-year visa with an extension possibility that permits you to work and travel around the country. The basic eligibility for a working holiday visa includes the following:
- You must be over 18 years old.
- You must possess a passport from an eligible jurisdiction or country.
- You must not be accompanied by your children.
2. A tax file number
You must get a tax file number before you start working in Australia. If you start working without a tax file number, you will be taxed a whopping 46 percent, so you better get it in advance.
3. An Australian bank account
Opening an Australian bank account is easy because you can do it online or in person. The requirements for opening a bank account include your passport number, your residential address in Australia, and details of your employment and salary.
Crucial things to consider before accepting a job offer in Australia
Before signing a job contract, here are crucial things to consider:
- Workplace culture
- The salary offered
- The cost of living in Australia
- Job location
- The status of your visa
- Benefits offered
- Working hours
- Potential for growth
- Relevant work experience
- Current circumstances
Australia is an expensive country, and it’s crucial to ensure that your salary caters to all your needs.
Although the average wage in this country offers a comfortable life, it’s essential to remember that your location and lifestyle significantly determine the cost of living.
Read More >> How Long is Summer Break in Australia?
References:
1. Salary Explorer (link)