Average Australian Salary 2026

Average vs Median Salary in Australia

According to the Australian Bureau of Statistics (ABS), the average full-time ordinary time earnings are approximately $100 168 per year ($1 926.30 per week). However, the median salary is approximately $73 000, which is a significantly more representative figure for typical earnings because it is not inflated by extremely high incomes at the top of the distribution.

The gap between the average and the median reveals an important characteristic of Australia's income distribution. The average is pulled upward by a relatively small number of very high earners in sectors like mining (where average salaries exceed $148 000), financial services, and senior executive roles. These high earners contribute disproportionately to the sum total of all wages, pushing the arithmetic mean well above what most Australians actually earn. The median, by contrast, represents the exact midpoint: half of all full-time workers earn more than $73 000 and half earn less. For practical purposes, if you want to know where you stand relative to "most" Australians, the median is the better benchmark.

This distinction matters when you read salary statistics in the media. Headlines often report the "average" salary because it is a larger, more impressive number, but the median gives a more honest picture of the typical Australian worker's financial reality. A useful rule of thumb: if your salary is above the median ($73 000), you earn more than half of all full-time workers in Australia. If your salary is above the average ($100 168), you are comfortably in the upper portion of the income distribution. To see how your salary translates to take-home pay, use our pay calculator.

Average Salary by State and Territory

Salaries in Australia vary considerably across states and territories, driven primarily by industry composition, the cost of living, and local labour market conditions. The differences can be substantial. A worker in the Australian Capital Territory earns, on average, roughly $22 000 more per year than a counterpart in Tasmania. These gaps reflect the economic structure of each jurisdiction rather than any inherent difference in worker quality or productivity.

Approximate figures based on ABS Average Weekly Earnings data. Rounded to nearest $1 000. Full-time adult ordinary time earnings.

The ACT's position at the top of the salary rankings reflects its concentration of federal government employment, where public servants, policy advisors, and senior officials earn well above the national average. Western Australia's strong showing is driven almost entirely by the mining and resources sector, where fly-in-fly-out (FIFO) workers routinely earn $130 000 to $200 000 in roles that often do not require university qualifications. New South Wales benefits from Sydney's status as Australia's financial capital, home to most major banks, insurance companies, and professional services firms.

However, high average salaries do not necessarily mean higher disposable income. Sydney's median house price exceeds $1.2 million, and rents for a one-bedroom apartment average $2 600 per month. A worker earning $102 000 in Sydney may have less disposable income after housing costs than someone earning $91 000 in Adelaide, where median house prices are roughly half of Sydney's. This cost-of-living adjustment is critical when comparing salaries across states and making decisions about interstate relocation.

Average Salary by Industry

Industry is one of the strongest determinants of salary in Australia. The gap between the highest-paying and lowest-paying industries exceeds $76 000 per year, a disparity that reflects differences in skill requirements, working conditions, capital intensity, and profitability across sectors.

Approximate figures based on ABS data. Full-time adult ordinary time earnings, rounded to nearest $1 000. Take-home pay estimated using 2025-26 ATO tax rates including Medicare levy.

The mining sector's dominance is striking. At $148 000, the average mining salary is more than double that of accommodation and food services ($72 000). This premium reflects the harsh working conditions (remote locations, extended rosters, physical demands), the high value of mineral resources, and the technical skills required for many mining roles. A diesel mechanic working on a mine site in the Pilbara region of Western Australia typically earns 40% to 60% more than the same mechanic working in a suburban workshop.

Financial and insurance services, at $120 000, benefits from a concentration of high-paying roles in banking, funds management, insurance underwriting, and financial advisory. Professional services ($115 000) encompasses law firms, accounting practices, management consultancies, and engineering firms, many of which compete for talent with global salaries. At the other end, accommodation and food services ($72 000) and retail trade ($78 000) have lower average salaries because these industries employ a large proportion of younger workers, rely on shift work, and face intense competition that limits labour cost increases.

Average Salary by Age Group

Earnings in Australia follow a predictable lifecycle pattern, rising steeply in the early career years as workers gain experience and qualifications, peaking between ages 45 and 54, and then gradually declining as some workers transition to part-time roles or enter semi-retirement.

Approximate figures based on ABS Census and survey data. Full-time workers only.

The peak earning years of 45 to 54 reflect a combination of accumulated experience, industry seniority, and the completion of professional development pathways. Workers in this age bracket have typically spent 20 to 30 years building expertise and are most likely to hold senior management, director, or principal-level positions. The decline after 55 does not necessarily indicate a pay cut for individuals; rather, it reflects the composition of the workforce, as some higher earners retire or transition to part-time consulting while remaining full-time workers at this age may be in different industries or roles.

For young workers in the 20 to 24 bracket, the average of $58 000 includes first-year graduates, apprentices, and workers in entry-level roles. The jump to $82 000 in the 25 to 34 bracket represents the steepest salary growth period in most careers, driven by the transition from entry-level to experienced roles, the completion of professional qualifications (CPA, engineering registration, legal admission), and the accumulation of job-specific expertise that employers value. If you are in this age bracket and earning less than $82 000, the most effective strategies for increasing your salary include gaining industry certifications, changing employers (which statistically produces larger salary increases than internal promotions), and developing skills in high-demand areas.

Gender Pay Gap in Australia

The national gender pay gap in Australia is approximately 21.8% based on average weekly full-time ordinary earnings, as measured by the ABS. This means women working full-time earn on average about 78 cents for every dollar earned by men. In dollar terms, the gap translates to approximately $18 000 per year in lower average earnings for women compared to men.

Approximate figures based on ABS Average Weekly Earnings data. Full-time adult ordinary time earnings.

The gender pay gap has been gradually narrowing over the past decade but remains persistent across most industries and occupations. The Workplace Gender Equality Agency (WGEA), which began publishing employer-level pay gap data in 2024, reported that 62% of employers had a gender pay gap in favour of men, 31% had a gap of less than 5% in either direction, and 7% had a gap in favour of women. The industries with the largest gaps include financial and insurance services (where the gap exceeds 25%), professional services, and construction. The smallest gaps are found in public administration, education, and health care, where workforce feminisation, transparent pay scales, and enterprise agreements help to equalise pay.

The causes of the gender pay gap are multifaceted. They include occupational segregation (women are more concentrated in lower-paying industries and roles), career interruptions for caregiving (which disproportionately affect women's career progression and superannuation balances), differences in negotiation outcomes, part-time work patterns (women are three times more likely than men to work part-time), and the undervaluation of work in female-dominated industries such as early childhood education, social work, and aged care. The Fair Work Commission's decision to increase minimum wages in aged care by 15% to 28% in 2023-24 was partly motivated by the recognition that these predominantly female workforces had been historically underpaid.

Income Distribution: Where Do You Sit?

Understanding the full income distribution helps put your salary in context. The percentile rankings below show what salary puts you in different positions within the full-time workforce.

Approximate percentiles based on ABS income distribution data. Full-time workers only. Includes base salary and regular earnings; excludes irregular bonuses and overtime.

The distribution reveals that Australia's income spread is quite concentrated. The gap between the 10th percentile ($42 000) and the 90th percentile ($150 000) is roughly 3.5 times, which is relatively compressed compared to countries like the United States (where the 90/10 ratio is approximately 5.5 times). This compression reflects Australia's strong minimum wage, widespread enterprise bargaining, and the influence of awards and modern awards that set minimum pay rates across industries. However, the gap widens dramatically at the very top: the 99th percentile ($350 000+) is more than eight times the 10th percentile.

Total Remuneration: Beyond Base Salary

When comparing your compensation to the averages above, it is important to consider total remuneration, not just base salary. Total remuneration includes all forms of compensation you receive from your employer, and the difference between base salary and total package can be substantial.

• Superannuation (12% SG): On an $85 000 salary, your employer contributes $10 200 to your super fund. This is part of your total compensation package even though it does not appear in your bank account until retirement. On a total employment cost basis, a "$85 000 base plus super" package is actually worth $95 200.
• Bonuses and commissions: In industries like finance, technology, and sales, variable pay can add 10% to 50% or more on top of base salary. A $100 000 base with a 20% bonus target represents $120 000 in expected total cash compensation.
• Salary packaging: For employees of not-for-profit organisations, salary packaging can increase take-home pay by up to $6 000 to $9 000 per year without changing the headline salary figure. This makes NFP sector salaries more competitive than they appear on paper.
• Other benefits: Company car or car allowance (worth $10 000 to $20 000 per year), private health insurance subsidy, additional leave beyond the NES minimum of 20 days, professional development budgets, employee share schemes, and flexible working arrangements all add value that does not appear in base salary comparisons.

The ABS average salary figures capture base salary and ordinary time earnings but generally do not include bonuses, overtime, or non-cash benefits. This means the "true" average total remuneration for full-time workers is likely 10% to 15% higher than the reported $100 168 when all forms of compensation are included.

Salary Growth Trends in Australia

Wage growth in Australia has been a central economic and political issue in recent years. After a prolonged period of historically low wage growth from 2013 to 2021 (averaging just 2.0% to 2.5% per year, often below inflation), wage growth accelerated from 2022 onwards. The Wage Price Index (WPI) rose by 3.2% in 2022-23, 4.2% in 2023-24, and is tracking at approximately 3.4% in 2024-25. After accounting for inflation, real wages (purchasing power) declined from 2021 to 2023 as CPI outpaced WPI, but have since recovered as inflation has moderated while nominal wage growth has remained elevated.

For individual workers, salary growth is driven by a combination of macro-economic conditions and personal factors. The most effective strategies for increasing your individual salary include:

• Changing employers: External job moves typically produce salary increases of 10% to 20%, compared to internal promotions that average 3% to 5%. Australian workers who change jobs every 2 to 3 years in their early career can significantly outpace those who stay with a single employer.
• Developing high-demand skills: Cybersecurity, data analytics, cloud computing, artificial intelligence, and healthcare specialisations currently command premium salaries due to supply-demand imbalances. Adding a relevant certification (AWS, Azure, CPA, PMP) can increase market value by 10% to 25%.
• Negotiating systematically: Research comparable salaries using job boards, WGEA data, and recruitment agency salary guides before your annual review. Present a case based on market rates, your contributions, and documented achievements rather than personal financial needs.
• Pursuing promotions: Moving from individual contributor to team leader to manager represents the steepest salary trajectory within most organisations. A graduate starting at $60 000 who reaches senior management by age 40 might earn $130 000 to $180 000, while a peer who remains in an individual contributor role might plateau at $90 000 to $110 000.

How to Compare Your Salary Fairly

When comparing your salary to the Australian average, consider these factors to make a meaningful assessment:

• Use the median, not the average: The median of $73 000 is a better benchmark for typical earnings than the average of $100 168, which is inflated by high earners.
• Compare within your industry: A $90 000 salary in retail is well above average for that industry, while the same salary in mining is well below average. Industry context matters more than the national average.
• Consider your experience level: Early-career professionals naturally earn less than mid-career workers. Compare with your age bracket for a fairer assessment.
• Factor in location: A $95 000 salary in Tasmania has significantly more purchasing power than the same salary in Sydney due to differences in housing costs and cost of living. After housing, a Sydney worker earning $102 000 may have less disposable income than an Adelaide worker earning $91 000.
• Include total remuneration: Super, bonuses, salary packaging, and other benefits can add 15% to 30% on top of your base salary. A $90 000 salary with 20% bonus and generous benefits might be worth more than a $110 000 salary with no extras.
• Consider career trajectory: A role paying $80 000 in a high-growth industry with clear promotion pathways may be more valuable over five years than a $95 000 role in a stagnant position with limited advancement.

Use our Australian pay calculator to see exactly how much of your salary you take home after tax, and compare your net pay at different salary levels using our salary to hourly converter.

Sources

• ABS: Average Weekly Earnings
• ABS: Employee Earnings and Hours
• WGEA: Gender Pay Gap Statistics