Average Income in Australia 2023

Australia is one of the wealthiest countries in the world, with a high standard of living and a strong economy. But how much do Australians earn on average, and how does it compare to other countries? In this article, we will explore the average income in Australia, how it varies by industry, state, and gender, and what factors affect it. We will also answer some of the most frequently asked questions about income in Australia.

What is the average income in Australia?

The average income in Australia is the amount of money that an individual or a household earns per year or per week. There are different ways to measure the average income, such as:

• Average weekly earnings (AWE): This is the sum of wages and salaries paid to employees divided by the number of employees. It includes full-time and part-time workers, as well as overtime and bonuses. It does not include self-employed workers, contractors, or business owners.
• Average weekly ordinary time earnings (AWOTE): This is similar to AWE, but it only includes the earnings for the ordinary hours of work, excluding overtime and bonuses. It also only covers full-time adult employees.
• Median weekly earnings (MWE): This is the middle point of the earnings distribution, meaning that half of the workers earn more than this amount and half earn less. It is less affected by outliers or extreme values than the average.
• Mean equivalised disposable household income (MEDHI): This is the total income that a household receives from all sources (such as wages, salaries, investments, pensions, etc.) after taxes and transfers, divided by the number of people in the household. It also adjusts for the different needs and costs of living of different household sizes and compositions.

According to the latest figures from the Australian Bureau of Statistics (ABS) released in August 2023, the average weekly earnings for all employees in Australia is AU$1,344 (or AU$69,888 per year), based on AWE. The average weekly earnings for full-time adult workers is AU$1,769 (seasonally adjusted), based on AWOTE. The median weekly earnings for all workers is AU$1,100 (or AU$57,200 per year), based on MWE. The mean equivalised disposable household income is AU$1,187 per week (or AU$61,724 per year), based on MEDHI.

Based on the average growth rate of 3.05% per year, it is predicted that the average income in Australia will be around AU$90,000 per year in 2023.

How does the average income in Australia vary by industry?

The average income in Australia varies significantly by industry, depending on the level of skill, education, experience, and demand for workers in each sector. According to the ABS, the highest-paying industries in Australia as of May 2023 are:

• Mining: AU$2,780 per week (or AU$144,560 per year)
• Information media and telecommunications: AU$2,010 per week (or AU$104,520 per year)
• Financial and insurance services: AU$1,960 per week (or AU$101,920 per year)
• Electricity, gas, water and waste services: AU$1,950 per week (or AU$101,400 per year)
• Professional, scientific and technical services: AU$1,840 per week (or AU$95,680 per year)

The lowest-paying industries in Australia as of May 2023 are:

• Accommodation and food services: AU$660 per week (or AU$34,320 per year)
• Retail trade: AU$740 per week (or AU$38,480 per year)
• Administrative and support services: AU$850 per week (or AU$44,200 per year)
• Arts and recreation services: AU$860 per week (or AU$44,720 per year)
• Agriculture, forestry and fishing: AU$890 per week (or AU$46,280 per year)

How does the average income in Australia vary by state?

The average income in Australia also differs by state and territory, reflecting the different economic conditions and opportunities in each region. According to the ABS, the highest-paying states and territories in Australia as of May 2023 are:

• Australian Capital Territory: AU$1,820 per week (or AU$94,640 per year)
• Western Australia: AU$1,720 per week (or AU$89,440 per year)
• New South Wales: AU$1,660 per week (or AU$86,320 per year)
• Northern Territory: AU$1,650 per week (or AU$85,800 per year)
• Victoria: AU$1,600 per week (or AU$83,200 per year)

The lowest-paying states and territories in Australia as of May 2023 are:

• Tasmania: AU$1,200 per week (or AU$62,400 per year)
• South Australia: AU$1,240 per week (or AU$64,480 per year)
• Queensland: AU$1,320 per week (or AU$68,640 per year)

How does the average income in Australia vary by gender?

The average income in Australia also shows a significant gap between men and women, reflecting the persistent issues of gender inequality, discrimination, and underrepresentation in the workforce. According to the ABS, the average weekly earnings for full-time adult male workers is AU$1,938 (or AU$100,776 per year), based on AWOTE. The average weekly earnings for full-time adult female workers is AU$1,687 (or AU$87,724 per year), based on AWOTE. This means that women earn 87% of what men earn on average, or a gap of 13%.

The gender pay gap varies by industry, with some sectors having a larger or smaller gap than others. According to the Workplace Gender Equality Agency, the industries with the largest gender pay gap as of November 2022 are:

• Financial and insurance services: 25.6%
• Rental, hiring and real estate services: 24.6%
• Construction: 23.4%
• Professional, scientific and technical services: 22.8%
• Health care and social assistance: 22.4%

The industries with the smallest gender pay gap as of November 2022 are:

• Public administration and safety: 7.4%
• Education and training: 9.4%
• Accommodation and food services: 9.7%
• Retail trade: 10.5%
• Administrative and support services: 11.5%

What factors affect the average income in Australia?

The average income in Australia is influenced by many factors, such as:

• Education: Generally, the higher the level of education, the higher the income potential. According to the ABS, the median weekly earnings for people with a bachelor degree or above is AU$1,600, compared to AU$1,000 for people with a certificate III or IV, and AU$800 for people with no post-school qualification.
• Experience: Generally, the more years of work experience, the higher the income potential. According to the ABS, the median weekly earnings for people aged 45–54 years is AU$1,400, compared to AU$800 for people aged 15–24 years.
• Occupation: Generally, the more skilled and specialized the occupation, the higher the income potential. According to the ABS, the median weekly earnings for managers is AU$2,000, compared to AU$1,200 for professionals, and AU$800 for labourers.
• Location: Generally, the more urbanized and developed the location, the higher the income potential. According to the ABS, the median weekly earnings for people living in major cities is AU$1,200, compared to AU$1,000 for people living in inner regional areas, and AU$900 for people living in outer regional or remote areas.
• Supply and demand: Generally, the more scarce and in-demand the skills and qualifications, the higher the income potential. For example, according to Seek, some of the highest-paying jobs in Australia as of June 2023 are:
  • Data Scientist: AU$140,000 per year
  • Cybersecurity Specialist: AU$138,000 per year
  • Cloud Engineer: AU$124,000 per year
  • Software Engineer: AU$120,000 per year
  • DevOps Engineer: AU$118,000 per year

Conclusion

The average income in Australia is a complex and dynamic topic that depends on many factors and varies by industry, state, gender, and other criteria. However, it is also an important indicator of the economic and social well-being of Australians and their living standards. By understanding how much Australians earn on average and what influences their income levels, we can better appreciate their challenges and opportunities in the world of work and income.

Most Asked Questions and Answers

Here are some of the most common questions and answers about the average income in Australia, based on the data and information from the ABS and other sources.

• Q1: What is the minimum wage in Australia?
• A1: The minimum wage in Australia is the lowest amount that an employer can legally pay an employee for their work. As of July 2023, the national minimum wage is AU$20.33 per hour, or AU$772.60 per week for a full-time worker.
• Q2: How does the average income in Australia compare to other countries?
• A2: The average income in Australia is one of the highest in the world, ranking among the top 10 countries in terms of gross national income (GNI) per capita. According to the World Bank, the GNI per capita for Australia was US$55,060 in 2022, compared to US$63,100 for the United States, US$46,420 for the United Kingdom, US$42,330 for Canada, US$41,560 for Germany, US$39,290 for France, US$32,860 for Japan, and US$10,540 for China.
• Q3: How is the average income in Australia taxed?
• A3: The average income in Australia is subject to income tax, which is a progressive tax system that charges higher rates for higher income brackets. The income tax rates for Australian residents for the 2022–23 financial year are:
  • 0% for income up to AU$18,200
  • 19% for income between AU$18,201 and AU$45,000
  • 32.5% for income between AU$45,001 and AU$120,000
  • 37% for income between AU$120,001 and AU$180,000
  • 45% for income above AU$180,000
  In addition to income tax, Australians also pay a Medicare levy of 2% of their taxable income to fund the public health system. Some Australians may also pay a Medicare levy surcharge of up to 1.5% if they do not have private health insurance and earn above a certain threshold. Furthermore, some Australians may also pay a temporary budget repair levy of 2% if they earn above AU$180,000.
• Q4: How does the average income in Australia affect the cost of living?
• A4: The average income in Australia affects the cost of living by influencing the prices of goods and services in the market. The cost of living in Australia is relatively high compared to other countries, especially in terms of housing, transportation, food, and education. According to Numbeo, a website that compares the cost of living across different cities and countries, the consumer price index (CPI) for Australia is 77.87 as of September 2023, compared to 100 for New York City as a reference point. This means that on average, Australians pay about 78% of what New Yorkers pay for the same basket of goods and services.
• Q5: How does the average income in Australia affect the quality of life?
• A5: The average income in Australia affects the quality of life by influencing the well-being and happiness of individuals and society. The quality of life in Australia is generally high compared to other countries, as reflected by various indicators such as life expectancy, health status, education level, social security, environmental quality, personal freedom, and human rights. According to the Human Development Index (HDI), a composite measure of human development based on life expectancy, education, and income per capita,