Comprehensive Guide to Average Salaries in Australia (2024)

Understanding the average salary in Australia is important for anyone navigating the job market or managing a workforce. This key metric reflects the nation's economic health and can help guide your career decisions and hiring strategies. 

This guide will provide you with the latest salary stats and explain how industry, location, and experience level impact pay across the country.

For job seekers, this is a powerful negotiation and career planning tool. Employers will find it helpful in setting competitive salaries and attracting the best talent. Policymakers can use these insights to shape economic policies that drive growth and fairness.

From Sydney’s tech hub to Western Australia’s mining industry, we’ll cover how salaries differ by industry sector, region, and profession. Whether you want to change careers, benchmark your pay, or develop HR policies, this article has the data you need to make informed decisions in the Australian job market.

Current Average Salary in Australia

According to the Australian Bureau of Statistics (ABS), the 2024 average salary in Australia for full-time workers is approximately AUD 98,000 per year, while the median salary is around AUD 65,000. These figures provide a snapshot of the average Australian salary. 

With a noticeably higher average salary, this would suggest that, on average, an employer is paying more than the median amount. Perhaps there are more skilled jobs available which can bring the average higher or perhaps the data has some significant outliers.

All of these factors should be taken into consideration when using both the average and median when deciding to hire abroad.

Breakdown by Industry

Now, we’ll look at which industries have the highest average weekly salary and which have the lowest weekly earnings.

In low-paying industries, the Australian minimum wage ($23.23 per hour as of July 2024) helps to make sure that all workers receive a fair income.

High-Paying Industries

In Australia, certain industries consistently offer higher average salaries due to the specialized skills required and the economic value they generate. Below is a table highlighting some of the highest-paying industries, along with their average weekly salaries:

• Mining: Employees earn an average of AUD 2,854 per week. The demand for skilled labor and the hazardous nature of the work drive high salaries.
• Information Media & Telecommunications: Median weekly earnings are AUD 1,630, benefiting from the increasing reliance on digital communication and IT.
• Finance and Insurance: Employees in this sector earn an average of AUD 2,000 per week, reflecting the high level of skill and responsibility required.
• Scientific and Technical Services: The average weekly salary is AUD 1,800, driven by the specialized knowledge and skills needed in this field.
• Electricity, Gas, Water, and Waste Services: Employees earn an average of AUD 2,005 per week, reflecting the technical expertise and critical nature of these services.

Source: SEEK.com, Jobs & Skills Australia, Australian Bureau of Statistics

Low-Paying Industries

Conversely, some industries in Australia tend to offer lower average salaries. Below is a table highlighting some of the lowest-paying industries, along with their average annual salaries and hourly wages.

The national minimum wage, set by the Fair Work Commission, helps workers in these low-paying industries by providing a basic salary that ensures a minimum standard of living. It is reviewed annually and varies for different worker categories such as full-time, apprentices, trainees, and junior workers.

• Retail: The average annual salary is around AUD 62,400, or AUD 32 per hour. This sector is characterized by numerous entry-level positions and part-time roles, which typically offer lower wages.
• Hospitality: This category includes jobs in restaurants, hotels, and tourism, with an average annual salary of AUD 55,000, or AUD 28 per hour. High turnover rates and the prevalence of casual and part-time employment contribute to lower wages.
• Agriculture: Workers in this industry earn an average annual salary of AUD 50,000, or AUD 26 per hour. The sector often involves seasonal work and lower-skilled labor.
• Administrative and Support Services: The average annual salary is AUD 58,000, or AUD 30 per hour. This industry includes office administration and support staff roles, which typically require fewer specialized skills.
• Arts and Recreation Services: Employees earn an average annual salary of AUD 60,000, or AUD 31 per hour. This sector includes artists, performers, and recreation workers, who often face variable income and part-time work.
• Personal Services: Workers in this sector, including hairdressers and beauty therapists, earn an average annual salary of AUD 54,000, or AUD 27 per hour. These roles often involve lower-skilled labor and part-time employment.

Source: Indeed, Fair Work Ombudsman

Regional Salary Differences

The average salary in Australia varies across different states and territories. Below is a table highlighting the average weekly earnings in each region of the country:

Employees in the Australian Capital Territory (ACT) have the highest median weekly earnings at AUD 1,889.10 per week. This is followed by Western Australia, where the median weekly earnings are approximately AUD 1,934.50. 

In contrast, Tasmania has one of the lowest median weekly earnings, at around AUD 1,540.00. These differences are influenced by the dominant industries in each state, the cost of living, and the availability of skilled labor.

Urban vs. Rural

There are considerable differences in the average monthly salary in the different regions of Australia.

In general, urban areas tend to offer higher salaries compared to rural regions. This is partly due to the higher cost of living in cities, which necessitates higher wages. For example, professionals working in Sydney or Melbourne can expect to earn more than their counterparts in rural New South Wales or Victoria. 

Urban areas often have a higher concentration of high-paying industries such as finance, technology, and professional services, which contributes to the higher salary and average income levels. Conversely, rural areas may have more jobs in agriculture and lower-paying service sectors, leading to lower average salaries.

Regional Trends

One trend to watch in Australia is the increasing wage growth in urban centers compared to rural areas. According to a study on rural-urban wage differences, urban regions have experienced more substantial wage growth, driven by the concentration of high-demand industries and better economic opportunities. 

There has been a growing disparity in salary levels between different states, with resource-rich states like Western Australia seeing higher wage growth due to the mining boom. 

Conversely, states with a higher reliance on agriculture or tourism, such as Tasmania, have experienced slower wage growth. 

Factors Influencing Salaries

There are many reasons that certain jobs may have a higher monthly average salary in Australia. Let’s look at some of the most common factors that affect average earnings. 

Education Level

Higher educational qualifications typically improve earning potential in Australia. Due to their specialized skills and advanced knowledge, individuals with a master's degree or PhD typically earn a higher average salary. 

For example, the mean weekly earnings of employees with a postgraduate degree were roughly AUD 1,893 in 2023. This trend is consistent across many fields, as higher education often leads to better job opportunities and higher pay. 

According to the Department of Education, higher educational attainment leads to higher total incomes, more diverse sources of income, and reduced reliance on a pension.

Work Experience

Generally, more years of experience translate to higher wages, as experienced workers are often seen as more valuable and skilled. 

Job Role and Responsibilities

The average weekly earnings of a job will vary based on the role within an industry. Different roles come with varying levels of responsibility, required skills, and expertise, which influence compensation. 

For example, within the healthcare sector, a general practitioner might earn less than a specialist surgeon due to the latter's specialized skills and higher level of responsibility. 

In the corporate sector, a senior manager typically earns more than a junior executive because of the greater decision-making power and accountability associated with the role. 

Economic Factors

Broader economic conditions also affect salary trends. Factors such as inflation, recession, or economic boom can influence salary levels across the board. 

For example, during periods of economic growth, companies may be more willing to offer higher salaries to attract and retain talent. Conversely, salary growth may stagnate or decrease during economic downturns as companies tighten their budgets. 

According to the Treasury, real wage growth is key to increasing living standards and depends on productivity growth, a dynamic labor market, and effective wage-setting institutions. 

Note that inflation can erode the purchasing power of wages, necessitating salary adjustments to maintain living standards.

Average Salary Australia Trends and Projections

Understanding past salary trends and future projections will help you make informed career and business decisions.

Historical Trends

Over the past decade, average salaries in Australia have steadily increased, albeit with some fluctuations due to economic conditions. 

From 2013 to 2022, the average annual wage adjusted for purchasing power parity rose from approximately AUD 74,724 to AUD 98,000. This growth has been driven by inflation adjustments, increased demand for skilled labor, and economic policies aimed at boosting wages. 

For instance, between 2013 and 2022, the annual wage growth averaged around 2.4%, with notable peaks and troughs influenced by economic cycles and external shocks. The decade saw significant wage growth in service industries, particularly healthcare and technology, which have consistently outpaced other sectors.

Future Projections

Looking ahead, salary trends in Australia are expected to continue their upward trajectory, although at a potentially slower pace. 

According to the Australian Industry Group (AiGroup), growth wage is expected to peak at 4.1% in the middle of 2024 before gradually declining to 3.2% by June 2026. This moderation in growth reflects the balancing act between controlling inflation and retaining top talent. 

Despite economic fluctuations, the average salary in Australia has shown a steady increase over the past five years, driven by a tight labor market and ongoing high demand from employers. 

Impact of External Factors

Global events have influenced salary trends in Australia. 

The COVID-19 pandemic, for instance, caused substantial disruptions in the labor market, leading to job losses in specific sectors while increasing demand in others. Industries such as accommodation and food services saw a dramatic decline in payroll jobs, while healthcare and social assistance experienced growth due to increased demand for services. 

Economic recessions have also impacted wage growth, with periods of slower wage increases during downturns. For example, the wage growth rate dropped to a record low of 1.30% in the fourth quarter of 2020 during the height of the pandemic. 

Conversely, economic recoveries and increased investments in sectors such as mining in Western Australia, have led to notable wage increases in specific regions and sectors.

Practical Applications

Knowing average salary data will provide insights for job negotiations, career planning, and setting competitive compensation packages for job seekers and employers.

For Job Seekers

Here are some tips on how to use this average salary information effectively for job seekers:

1. Set Realistic Salary Expectations: Use salary data to set realistic expectations based on industry standards for your desired position. This helps you enter salary negotiations well-informed and positions you as a candidate who understands their market value. For example, if the average salary for your role is AUD 70,000, aim for a range around this figure during negotiations.
2. Conduct Thorough Research: Use multiple sources like Glassdoor, Payscale, and industry-specific salary surveys to gather salary data. This will help you understand the market value of your skills and experience and help you to negotiate confidently.
3. Highlight Relevant Skills and Experience: Tailor your resume and cover letter to showcase the skills and experience that align with the salary data. Demonstrating that you possess the qualifications employers are seeking can justify your salary expectations.
4. Use Salary Calculators: Online tools can help you estimate your net pay after taxes and other deductions, giving you a clearer picture of your take-home salary.

For Employers

Employers need to set competitive salary packages to attract and retain top talent. Here are some strategies to achieve this:

1. Conduct Market Research: Regularly gather market data to understand the going rates for roles in your industry. Use reliable sources and participate in salary surveys to get accurate data. Avoid self-reported data and instead rely on data reported by organizations into systems.
2. Define a Clear Compensation Strategy: Establish a compensation strategy that aligns with your company's goals and values. Decide whether your benchmarks will be at, above, or below market value, and make sure that you have consistency across all hires. Pay equity should be a priority to maintain a fair and motivating work environment.
3. Build Pay Ranges: Based on market data, develop salary ranges for each job role. This includes setting minimum, median, and maximum pay levels. Pay grades can help establish clear pay structures, ensuring fairness and transparency in compensation.
4. Regularly Review and Adjust Salaries: Stay competitive by regularly adjusting salaries based on market trends and economic conditions. This helps retain top talent and align your compensation packages with industry standards.

Salary Calculators

Salary calculators help to estimate net pay after taxes and other deductions, providing a clear picture of take-home salary. Here are some recommended tools:

1. Pay Calculator: A helpful tool for calculating net pay, including income tax and other deductions. It provides detailed tax and net income breakdowns, helping users better understand their financial situation.
2. Tax Calculator: This calculator helps determine net pay after tax and other deductions, offering insights into marginal and average tax rates. It is useful for comparing different salary scenarios and understanding the impact of bonuses and additional income.

Empower Your Career and Business

Understanding salary trends and projections empowers you to confidently navigate the job market or consider appropriate salary compensation. 

You can use the data you’ve learned to negotiate better pay or attract top talent within your organization. Use the insights in this article to benchmark your salary expectations or set competitive compensation packages. 

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Disclaimer: The content of this article is intended solely for informational purposes. It is advised to consult with a qualified professional before making any contractual commitments. Any decisions made or actions taken based on the information provided herein are at the sole discretion and responsibility of the reader.