Eye-watering salary now considered by Aussies to be ‘comfortable’

Persistent inflation and a dramatic surge in house prices means Aussies now think they need to make an insane amount just to be comfortable.

Australians believe they need to be making an eye watering amount just to be comfortable, as cost of living continues to put pressure on households.

Survey data of 1012 Aussies released by Finder shows Australians expectations of a good salary is on the rise.

The findings show, workers on average now believe a “good” salary is $152,775, but to live comfortably Aussies need to make $164,577 a year, although this varies based on state and age.

High cost of living means Australians think they need more than $160,000 just to get ahead. Picture: Newswire/ Gaye Gerard

Finder money expert Sarah Megginson said a sufficient income was more than the number on a pay slip, with lifestyle playing a major role in how much workers have left over.

“It’s about how hard that money works for you, your spending habits and the money leaks that are draining your wallet, and how your income aligns with the life you want to live,” she said.

“You can have one person earning a solid six-figure income who is living pay to pay and is constantly stressed about money, while someone else is earning $50,000 a year and paying all their bills on time and feels financially in control.”

According to the research, the amount needed for a good salary will vary depending on where a person lives and how old they are.

People in NSW have the highest salary expectations, deeming $168,160 a ‘good’ income, while those in South Australia have the lowest at $140,334.

Queenslanders expect $148,779, compared to Victorians ($148,308) and Western Australians ($147,408).

Gen Z considers a ‘good’ salary starts out at $177,212 while the Baby Boomers say they would be happy with $126,938.

Ms Megginson said the cost of living had redefined what Australians considered to be a good salary.

“A $100,000 salary, once a benchmark for comfortable living, now often feels more like a necessary starting point, especially in major cities,” she said.

“Persistent inflation and a dramatic surge in property prices have reshaped perceptions and many people now feel that a low six-figure income no longer provides the same level of financial stability it once did.

Workers are feeling the pinch from cost of living pressures. Picture: NewsWire / John Appleyard

The research shows Australians think a good salary is significantly more than the average salary with the most recent data from the Australian Bureau of Statistics showing full-time adults earn $1,975.80 a week or a little over $100,000 a year.

The median salary for full-time workers is just over $88,000.

ABS head of labour statistics Bjorn Jarvis said at the time the average earnings was influenced by a range of factors including growth across higher paying jobs and a drop in lower paid roles.

“Annual growth to November 2024 remained high at 4.6 per cent, or an extra $87 a week. This growth rate was the same as it was in the year to May 2024.

“Annual growth in average earnings was the equal highest since May 2020, when lower paying jobs were over-represented in job losses early in the Covid-19 pandemic.

“Before the pandemic, the last time it was 4.6 per cent or higher was in May 2013.”

Originally published as Eye-watering salary now considered by Aussies to be ‘comfortable’