How much do Aussies earn
October 22, 2019
When you think about your income do you feel rich, poor, or just average? Most of us have no idea of how we compare with the rest of the population and it’s time we find out.
According to the ABS, the average Australian yearly wage for full-time adults in Australia in May 2019 was $84,968*.
If that seems high to you, you’re right. This ‘average’ wage is the mean rather than the median. An ordinary Australian earns way less than that.
The mean takes the total collective income earned, and divides it by the number of earners. But because some people earn way more than others, the mean is significantly skewed towards the upper end. The wealthiest 20 per cent now control 60 per cent of all household wealth. So if you're making under $84,968 a year, this doesn't mean that you're in the "bottom half" of the population.
As independent economist Saul Eslake put it: “If Bill Gates walks into a bar full of ordinary Australians, the mean income of the room has suddenly gone up a lot, but the median income hasn’t changed at all.”^
So what is the median income? The median is more focused on actual people. It lines up every worker in Australia from lowest to highest income, finds the person right in the middle, and that person’s income is the median wage.
Households come in different shapes and sizes, so the ABS calculates the “equivalised disposable income” – the household income after tax, but adjusted for the size of the household. The median is $44,356 a year. Sounds a bit more accurate.
If you want to find out how many households are better or worse off than yours, try the compare your income calculator.
So where do the high earners live? Sydney first comes to mind but in reality, Ashburton in northern Western Australia has the highest proportion of top income bracket earners in Australia at 35 per cent, or more than one in three, due to the prevalence of the mining industry in the area. If you want to find out where the other half lives, try the ABC income calculator.
How has our income grown over the past decade?
It seems Australia’s richest households have been getting richer while middle and low-income earners have barely seen an increase their earnings.
Disposable income has only increased $44 a week over the past decade. With close to three in four (73 per cent) households also in debt in 2017—18, working people simply don’t have any money to spend. #
On a positive note, the average household super balance has nearly doubled over the past 12 years.
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^ https://thenewdaily.com.au/money/finance-news/2018/06/08/average-australian-wages-revealed/?utm_source=Adestra&utm_medium=email&utm_campaign=Saturday%2020180609
# https://www.news.com.au/finance/work/how-does-your-income-compare-to-others/news-story/0ce60a9a6f433a765fe77a6c440b52b1