Recent research indicates a significant generational divide in how Australians perceive an acceptable salary. According to a Finder survey involving over 1,000 participants, the average ‘good’ base salary is approximately $152,775 per year. Interestingly, younger Australians have raised salary expectations far higher than older demographics.
For instance, members of Generation Z have a perceived good salary of $177,212, which is almost $50,000 more than the $126,938 deemed satisfactory by Baby Boomers. Meanwhile, data from the Australian Bureau of Statistics highlights that the average full-time worker earns just over $100,000, which is notably 14% higher than the median salary of just above $88,000.
Sarah Megginson, a personal finance expert at Finder, remarks that the rising cost of living has dramatically influenced perceptions of what constitutes a good salary. Once, earning $100,000 was a mark of financial comfort; now, it’s often seen as a minimal requirement, particularly in urban centres. Factors such as ongoing inflation and soaring property prices have altered understanding of financial stability, rendering what used to be considered a desirable salary less reassuring. As Megginson explains, a $130,000 income might offer considerable comfort in some regions, but could barely cover basic expenses in others.
Salary expectations also differ geographically. Residents of New South Wales report the highest desired income, with $168,160 considered good, while South Australians expect the least at $140,334. Queenslanders and Victorians anticipate salaries of $148,779 and $148,308, respectively, while Western Australians think $147,408 is adequate.
Further insights from the survey reveal generational disparities when Australians contemplate the amount needed to “live comfortably.” Gen Z again emerges as having the highest expectations, estimating they would require an annual income of $198,808, followed by Millennials at $176,150, Baby Boomers at $106,747, and Gen X at $161,231.
In summary, evolving economic conditions and diverse regional expectations are reshaping how Australians assess salary adequacy across different generations. The interplay between age, location, and cost of living continues to drive significant variations in salary expectations.