What Is The Average Salary In Australia? & Factors Effecting (2024)

Are you eager to know what is the average salary in Australia?

According to the Hays Salary Guide FY23/24,average salaries in Australiacontinuously fluctuate based on the industry and location. However, $90,000 AUD is above the median Australian salary and according to the salary comparison and career resources website, Salary Expplore the average salary in Australia per month is $7,570 AUDwhich is equal to $5,032 USDaccording to the exchange rates in April 2023.

In this article, we will discuss the topics of average income in Australia, median wage and what is the minimum income in Australia that is set mandatory by the Australian Bureau of Statistics (ABS).

We will also cover the factors that influenceaverage income in Australiaand some of the highest-paying industries in Australia.

What is the importance of staying updated with salary trends?

Staying updated with salary trends is vital because it:

1. Informs career decisions and negotiations.
2. Enables fair salary benchmarking.
3. Enhances financial planning.
4. Boosts job satisfaction.
5. Offers insights into economic situations.
6. Identifies career advancement possibilities.
7. Provides a competitive edge for employers.
8. Demonstrates market awareness.
9. Contributes to long-term financial security.

Trends and statisticsof the average salary in Australia

I. Average salary

The average salary is calculated as the total salary derived by adding the salaries earned by all the citizens and dividing by the number of citizens.

As mentioned earlier, according to SalaryExplorer, which draws on data from employers and surveys of workers, Australia’s average yearly income is $90,800 (AUD).

According to the latest statistics from the ABS released in August 2023, the average weekly earnings for an Australian citizen working full time are $1838 (AUD). This report also indicates an annual increase of 3.9% or $68 per week.

II. Median Salary

This median salary represents the middle value of all salaries considered and arranged in either increasing or decreasing order.

The median salary in Australia for 2023 is approximately 6,650 Australian dollars (AUD) per month or $4,420 USD. The media salary in Australia calculated per year is The median salary is $80,100 (AUD). This indicates that half of the Australian population earns less than 6,650 AUD per month, while the other half earns more than that.

III. Minimum Wages

According to the International Labour Organization, minimum wages are “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”.

Australia has a national law requiring a minimum hourly wage of 21.38 AUD (USD 14.21) for both part-time and full-time workers. This minimum wage is significantly better than that of the US (USD 7.25 per hour) and the United Kingdom (GBP 10.42 or USD 12.93 per hour). Employers must not pay a cent lower than the minimum wage, as stipulated by the Fair Work Commission, which handles workplace disputes.

National Minimum Wage increase

Australia has recently introduced an increase in minimum wages and these increases to a minimum and award wages take effect from July 1, meaning Australian employees on the minimum wage working 38 hours a week will earn a minimum income increase of 5.75%. This means the new National Minimum Wage will be $23.23 per hour or $882.80 per week.

IV. Annual Salary Increment Rate

Do you wonder how much are annual salary increments in Australia? How often do employees get salary increments in Australia?

As the answer to this question employees in Australia can expect an average salary growth of 8% every 16 months. Interestingly, this increment rate is actually higher than that of the world which is 3% every 16 months according to the Salary explorer.

The term “Annual Salary Increase”typically denotes the raise given over a period of 12 months. However, since salary reviews are not exactly done on the one-year mark, it is more practical to consider the frequency and rate at which salary increases actually occur.

Factors Influencing Salaries in Australia

The average salary may vary according to the influencing factors, such as the industry of work, the specific role of employees, years of experience and qualifications, and location. Let us understand them clearly.

A.Experience

Experience plays a crucial role in determining salaries in Australia with higher levels of experience resulting in chances higher wages.

Here is how salary changes with experience:

1. Employees with 2 to 5 years of experience typically earn an average of 32% more than entry-level and junior employees in all industries and fields.
2. Employees having experience over five years of experience tend to earn an average of 36% more than individuals with less than 5 years of experience.
3. Employees with ten years of work experienceearn salaries with an average increase of 21%, compared to those with less than 10 years of experience.
4. Employees with work experience over 15 years will earn wages with an additional 14% increase.

B. Education and Qualifications

In Australia, higher education levels are often associated with better income. Here’s how different levels of education of individuals with the same experience and doing the same job impact salaries:

1. Certificate or Diploma: Employees with a certificate or diploma earn an average of 17% more than those who only completed their high school studies.
2. Bachelor’s Degree or Certificate IV: Employees who have completed a Bachelor’s Degree earned around 24% more than those with a certificate or diploma.
3. Master’s Degree: Professionals with a Master’s Degree earned 29% more than more than their counterparts with a Bachelor’s Degree.
4. Ph.D.: employees who held a PhD earned an average of 23% more than those with a Master’s Degree while doing the same job.

C. By State

According to the latest Australian Bureau of Statistics (ABS), report for Australian salaries shows the average weekly earnings in each state and territory. These figures represent the salaries of full-time workers across all industries.

1. New South Wales:
   average salary in New South Walesfor full-time adults is $1,831.90 per week.
2. Victoria:
   the average weekly ordinary time earnings for full-time workers In Victoria, regardless of gender, is $1,832.90.
3. Queensland:
   Full-time employees in Queensland can expect to earn a weekly average salary of $1,791.00.
4. South Australia:
   The average ordinary time wages per week for full-time workers in South Australia is $1,677.80.
5. Western Australia:
   Theaverage salary in Western Australiais $2,039.30 per month, which is the highest weekly average earnings for full-time employees compared to all other states and territories. That’s a weekly figure of $201.30 higher than the national average.
6. Tasmania:
   The average ordinary-time earnings for full-time workers in Tasmania is $1,619.30 per week, which is $218.70 lower than the national average.

Source: forbes.com

D. By City

1. Average Salary in Sydney:
   According to PayScale, the average salary in the city of Sydney is $80,000 a year.
2. Average Salary in Melbourne:
   The average annual salary in Melbourne is $75,000. This figure is derived from more than 57,000 individual reports of salary and compensation.

3. Average salary in Brisbane:
   The average annual salary in Brisbane for full-time employees is $73,000. This figure comes from salary reports of more than 30,000 Brisbane workers.

4. Average Salary in Perth:
   The average annual salaryin Perth is $77,000, this data is sourced from 22,000 individual reports, according to PayScale.

5. Average Salary in Adelaide
   PayScale data compiled from more than 16,000 individual reports on salaries being paid in Adelaide found that the average yearly salary for the capital city is $70,000.

Source: forbes.com

E. By industry and Occupation

Based on the data sourced from Salary Explorer, here are some average annual salaries in Australia by profession as of 2023:

1. Accountant: The average income of an accountant is 66,100 AUD per year.
2. Engineering:
   • Civil Engineer: The average salary of a civil engineer in Australia is 83,700 AUD per year.
   • Electrical Engineer: The average annual salary offered to electrical engineer in Australia is 92,800 AUD,
   • Mechanical Engineer: The mechanical engineer in Australia get an average salary of 91,800 AUD
3. IT:
   • Database Administrator: The average salary of a data administrator is 94,100 AUD per annum.
   • Developer/Programmer: The programmer gets an average annual salary of 93,900 AUD,
   • Information Technology Manager: average salary for an IT manager is 155,000 AUD
4. Medical:
   • Dentist: 214,000 AUD,
   • Nurse: 72,600 AUD
5. Legal:
   1. Attorney: 186,000 AUD
6. Executive and Management:
   • CEO (Cheif Executive Officer): 204,000 AUD,
   • CFO (Chief Financial Officer): 189,000 AUD
7. Education:
   • Elementary School Teacher: 64,700 AUD,
   • Secondary School Teacher: 76,700 AUD

Source:salaryexplorer.com.

These values are only references, individual salaries may vary depending on factors like location, demand, etc,

Top Industries in Australia with Strong Growth Prospects

Based on the most recent data from the Australian Bureau of Statistics for the 2021-22 financial year, the industries with strong growth prospects in Australia include:

1. Mining Industry: Earnings grew by $54.3 billion, which is a 32.7% increaseand a 29.5% increase in IVA, driven significantly by energy commodities due to shortages in Europe and strong demand in Asian markets.
2. Rental, Hiring, and Real Estate Services Industry: Earnings grew by $8.5 billion, marking a 13.5% increasereflecting a substantial improvement and recovery in this sector
3. Wholesale Trade Industry: Saw an earnings growth of $8.0 billion or 30.2%.
4. Manufacturing Industry: Earnings increased by $7.6 billion, a growth of 17.8%.

The data indicates significant growth in earnings across these industries, signaling strong growth.

According to ABS’s recent record of weekly salaries these industries provide an average weekly wages as follows:

Conclusion:

In conclusion, the average salary in Australia reflects a dynamic and robust economy, influenced by a range of factors including education, experience, industry, and location.

With the national median salary being 6,650 AUD per month and the average annual wage predicted to be around 90,000 AUD, Australia presents opportunities across various sectors.

Notably, the mining and manufacturing industries have shown strong growth potential. As the Australian job market continues to evolve, these salary figures can be expected to shift, emphasizing the importance for workers to stay informed and adaptable.

For the latest and most accurate salary information, consulting sources like the Australian Bureau of Statistics are recommended. By considering these factors, individuals can make informed decisions about their careers and financial prospects in the land down under.

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