Realistically speaking, $60,000 is not enough to support a family of four in Sydney, Melbourne, or another expensive city. In a less expensive location, however, it could be the right income for your needs.
The widely reported ASFA Retirement Standard suggests couples can enjoy a 'comfortable lifestyle' on around $70,000 a year and singles on around $49,000. It stands to reason then that a single person should be able to live more than comfortably on $60,000 while a couple would live reasonably well, if not lavishly.
According to the Australian Bureau of Statistics, the median salary in Australia in August 2022 was $65,000. So out of over 14 million people employed in Australia, this is what we'd call a “typical” salary.
That figure covers both full-time and part-time workers and included the 5.2 per cent minimum wage increase for retail workers that came into effect on July 1. That means anyone who earns more than $65,000 a year is among the top half of Australian workers in the pay stakes.
Australians of different ages, races, and sexes have different median incomes. From this, the median wage in Australia is about AUD 45 per hour. In Australia, a comfortable standard of living requires an annual household income of at least AUD 50,000.
Australians wanting to be in the country's top 1% for wealth need to have an individual net worth of US$5.5 million ($8.3 million), Knight Frank's 2023 Wealth Report has found.
The Australian middle class has a median household income of AUD$80,000. This statistic is a key indicator of the financial health of the Australian middle class.
Realistically speaking, $60,000 is not enough to support a family of four in Sydney, Melbourne, or another expensive city. In a less expensive location, however, it could be the right income for your needs.
A $70,000 annual gross income with a mortgage at 5.99% p.a. equates to a loan amount of up to $391,222. With a 10% deposit contribution, the maximum affordable property price would be $434,691, or with a 20% deposit $489,027.
A six-figure salary can come by digging a hole, filling a hole and calculating the depth of a hole, but the pursuit of $100,000 a year or more is not an exact science. Almost 790,000 Australians, or 6 per cent of the workforce, earned $100,000 or more in the past financial year, Australian Taxation Office figures show.
If you make $66,000 a year living in Australia, you will be taxed $13,237. That means that your net pay will be $52,763 per year, or $4,397 per month. Your average tax rate is 20.1% and your marginal tax rate is 34.5%.
Average Australian Salaries in 2023
A taxable income that was $131,501 or higher was within the top 10% of earners in Australia last year. About 5% of taxpayers had incomes above $180,000. Someone who earned more than $253,066 was in the top 1%.
If you make $70,000 a year living in Australia, you will be taxed $14,617. That means that your net pay will be $55,383 per year, or $4,615 per month.
The average annual salary in Australia is $68,900 and $35.30 per hour. It is just the average salary for basic workers but skilled and experienced workers also earn around $108,980 annually. The average salary also varies depending on the field of work and the job role of workers.
Only another 14.9 per cent had taxable incomes exceeding $80,000 a year. So a taxpayer with an income of $80,000 a year is therefore in the top 20 per cent of Australians.
An annual after-tax $80,000 income with $1,000 in monthly expenses nets you a mortgage of just under one million. With an interest rate of 4% over 30 years, you'll see a monthly repayment of $4,800.
“To comfortably afford this you'd need to be earning a minimum income of just over $180,000 – significantly more than the average salary.”
If you make $60,000 a year living in Australia, you will be taxed $11,167. That means that your net pay will be $48,833 per year, or $4,069 per month. Your average tax rate is 18.6% and your marginal tax rate is 34.5%. This marginal tax rate means that your immediate additional income will be taxed at this rate.
All in all, only two percent of Australia's 14.3 million workers take over $200,000 a year. Only three percent of Australians earn $188,667.
If you make $65,000 a year living in Australia, you will be taxed $12,892. That means that your net pay will be $52,108 per year, or $4,342 per month. Your average tax rate is 19.8% and your marginal tax rate is 34.5%.
Lower-income class refers to households with income below 75% of the median national income. Middle-income class refers to households with income between 75% and 200% of the median national income.
There is no “one size fits all” plan for all but it is understood that an individual may need approximately $20,000 each year and an average family needs more than $50,000 a year to get by in Australia.