Surprise mark of a ‘good’ salary in each Aussie capital city

Aussies have revealed what they think the start of a good base salary now is in each capital city – and it’s not what you’d think.

“Good money” in the modern Australian jobs market may not be what you think.

A new survey has revealed what Aussies believe marks the start of a good base salary in each capital and across the country – and simply being on six figures is no longer viewed as enough.

The polling results from comparison group Finder.com.au showed the average Australian believed roughly $153,000 was the minimum annual amount needed to have a good pay packet.

Finder also asked respondents a similar question – “what’s enough money to live comfortably?” and the average answer was a little higher at about $165,000 or more a year.

But a “good income” would still not be enough to purchase most capital city housing without the help of a partner – unless buying a unit.

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Those earning over $152,000 have a good salary, according to most Aussies.

To avoid “mortgage stress”, the average household income required to purchase the average capital city house has ballooned to $199,000 a year, according to mortgage analysis.

Capital city units required average household earnings of $136,000 if using a 20 per cent deposit, the average loan rate of 6.23 per cent and using a 30-year loan.

Mortgage Choice Dee Why director James Algar said it had become “highly unusual” for home seekers to purchase houses without a dual income – even in suburbs where incomes were high.

Finder personal finance expert Sarah Megginson said rising living costs had reshaped Aussies’ earning expectations.

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Those on less than $130,000 a year would be unable to buy a unit without the help of a partner on a second income.

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“A $100,000 salary used to be considered a high income for most Australians,” she said.

“Now, thanks to inflation and soaring property prices in particular, many feel it’s more of a starting point than a marker of wealth.

“Ultimately, a ‘good’ salary really depends on your individual circumstances – where you live, your expenses, and your personal goals.

“A figure like $130,000 will seem high to some, while others may find it barely enough to keep up with the demands of inner city life.”

NSW residents had the highest expectations for what marked a “good” salary at $168,000, while South Australians had the lowest among major capitals at $140,000.

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Perceptions of what’s a “good” salary vary by city. Picture: Julian Andrews

A salary of about $149,000 was considered good money in both Queensland and Victoria, while in Western Australia the figure was about $147,000.

For some comparison, the average full-time worker in Australia earns just over $100,000 a year, according to the ABS – although incomes vary greatly across cities and regions.

The median salary, often viewed as a more accurate figure as it plucks out the middle figure and is thus not as distorted by especially high and low salaries, is $88,400.

It comes as the latest ABS figures showed inflation has been slowing after record rises over 2022 and 2023.

CPI for the December quarter was recorded at 2.4 per cent, within the target range of the Reserve Bank and well below the circa 4-8 per cent levels recorded over 2023.

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The Labor government’s stage 3 tax cuts, announced by Treasurer Jim Chalmers, boosted the amount of take home pay Aussies kept, but high inflation has meant households need to spend more. Picture: NewsWire / Nadir Kinani

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Ms Megginson said a ‘good’ salary isn’t just about the number on your payslip.

“It’s about how hard that money works for you and how it aligns with the life you want to live.”

“If you feel like your income isn’t stretching as far as you’d like, now is the time to take control.

“Start by tracking where you’re spending your money and see where you can cut back on unnecessary spending. Simple steps like cancelling unused subscriptions and cooking at home more often will lead to quick savings.

“The best thing you can do is check to see if you’re paying too much for necessities – like energy, insurance, even your mobile plan. If you haven’t switched providers in the past 12 months, you’re probably paying too much.”