How Australian Salaries Work
Australia operates a national minimum wage set by the Fair Work Commission — $23.23 per hour or $882.80 per week as of July 2025, rising incrementally each year. Above this floor, salaries are set by enterprise agreements, modern awards (industry-specific minimum rates) or individual contracts. In practice, most professional and technical roles operate on individual contracts, with market forces determining the actual rate.
Salaries are quoted gross (before tax) in Australia. The tax system is progressive: a $120,000 salary does not return $120,000 in take-home pay. After income tax and the 2% Medicare Levy, a $120,000 gross salary yields approximately $87,500 net in 2026. The practical implication is that international comparisons of Australian salaries need to account for this, as well as the cost of living differential.
Important Note on Superannuation
All Australian salaries are supplemented by mandatory employer superannuation contributions of 11.5% of gross wages in 2026, rising to 12% from July 2025. This is paid into a retirement account in your name and is in addition to your stated salary. A $120,000 salary therefore comes with an additional $13,800 per year in retirement savings. When comparing Australian salaries to international equivalents, include this figure.
Technology & Engineering
| Role | Entry Level | Mid Level (5 yrs) | Senior (10+ yrs) | Demand Level |
|---|---|---|---|---|
| Software Engineer | $75k – $95k | $110k – $145k | $155k – $210k | Critical shortage |
| Data Engineer | $80k – $100k | $115k – $155k | $160k – $220k | Critical shortage |
| Cybersecurity Analyst | $85k – $105k | $120k – $160k | $165k – $230k | Critical shortage |
| Cloud Architect | $100k – $130k | $145k – $185k | $190k – $260k | High demand |
| UX/Product Designer | $70k – $90k | $100k – $135k | $140k – $185k | Moderate demand |
| Civil Engineer | $70k – $88k | $95k – $130k | $135k – $185k | High demand |
| Mechanical Engineer | $68k – $85k | $92k – $125k | $130k – $175k | Moderate demand |
Healthcare & Allied Health
| Role | Entry Level | Mid Level | Senior / Specialist | Notes |
|---|---|---|---|---|
| Registered Nurse | $68k – $78k | $82k – $100k | $105k – $130k | Significant shortage in regional areas |
| General Practitioner | $140k – $180k | $200k – $280k | $280k – $400k+ | High demand nationally |
| Specialist Physician | $250k+ | $300k – $450k | $450k – $700k+ | Training pathway 10–12 years |
| Physiotherapist | $62k – $78k | $82k – $110k | $115k – $150k | Private practice adds significant income |
| Pharmacist | $65k – $80k | $85k – $110k | $110k – $145k | Retail vs hospital pay varies |
| Dentist | $90k – $120k | $140k – $200k | $200k – $350k+ | Influenced by practice ownership |
| Mental Health Nurse | $72k – $85k | $88k – $108k | $112k – $140k | Growing demand |
Finance, Business & Professional Services
| Role | Entry Level | Mid Level | Senior |
|---|---|---|---|
| Accountant (public practice) | $58k – $72k | $80k – $115k | $120k – $180k |
| Financial Analyst | $65k – $85k | $95k – $130k | $135k – $200k |
| Investment Banker | $90k – $120k | $140k – $220k | $250k – $500k+ |
| Project Manager (tech) | $85k – $105k | $115k – $150k | $155k – $210k |
| Human Resources Manager | $70k – $90k | $100k – $135k | $140k – $190k |
| Marketing Manager | $65k – $85k | $95k – $130k | $135k – $185k |
| Lawyer (private practice) | $75k – $95k | $110k – $165k | $170k – $350k+ |
Trades and Construction
Australia's trades sector is in genuine shortage. Qualified electricians, plumbers and construction project managers are among the most sought-after workers in the country, and their wages reflect this. Many experienced tradespeople running their own businesses earn more than graduate professionals.
| Trade | Apprentice | Qualified | Experienced / Own Business |
|---|---|---|---|
| Electrician | $18k – $35k | $80k – $105k | $120k – $180k+ |
| Plumber | $18k – $35k | $78k – $100k | $115k – $170k+ |
| Carpenter | $18k – $32k | $68k – $90k | $100k – $145k+ |
| HVAC Technician | $20k – $36k | $75k – $98k | $105k – $150k+ |
| Construction Site Manager | N/A | $110k – $150k | $165k – $250k |
How to Negotiate Your Salary in Australia
Australian workplace culture supports salary negotiation more than many international comparisons would suggest. The key cultural norms: be direct and specific (name a figure rather than a range), reference market data (Seek Salary Insights, LinkedIn Salary, APS remuneration surveys), and frame negotiations around value delivered rather than personal need. Most employers expect negotiation and have budgeted above initial offer accordingly.
Important: when evaluating any offer, add 11.5% superannuation to the quoted salary before comparing with overseas equivalents. A $120,000 package in Australia is effectively $133,800 in total compensation before tax.
Melbourne vs Other Cities: Salary Differentials
| Sector | Melbourne | Sydney | Brisbane | Perth |
|---|---|---|---|---|
| Technology | $130k avg senior | $140k avg senior | $120k avg senior | $125k avg senior |
| Finance | $125k avg senior | $150k avg senior | $110k avg senior | $118k avg senior |
| Healthcare | $105k avg senior | $108k avg senior | $100k avg senior | $115k avg senior |
| Construction | $145k avg senior | $150k avg senior | $135k avg senior | $165k avg senior |
Sydney pays a consistent 8–12% premium over Melbourne in most professional categories, reflecting both the city's dominance in financial services and its higher cost of living. Perth pays a notable premium in construction and mining roles. Brisbane is generally 8–10% below Melbourne across most sectors, though the gap is narrowing as the city's economy has matured.
Frequently Asked Questions
Is $100,000 a good salary in Melbourne?
$100,000 gross (before tax) in Melbourne yields approximately $72,900 net after income tax and the Medicare Levy — around $6,075 per month take-home. On that income, a single person can live comfortably: rent a decent apartment in the middle suburbs, eat well, save moderately and participate fully in Melbourne's cultural life. A couple with both partners on $100,000 gross can buy property in the outer or middle suburbs with a reasonable deposit. It is not wealthy by any measure, but it is a solid professional salary that affords genuine quality of life in Melbourne.
Is $80,000 a good salary in Melbourne?
$80,000 gross returns approximately $60,700 net, or roughly $5,060 per month. This is workable but requires considered budgeting in Melbourne's current rental market, particularly if living alone. Rent for a one-bedroom apartment in the inner suburbs will consume $1,600–$2,000 of this monthly, which leaves comfortable room for living expenses but limits how quickly you can save. In the middle or outer suburbs where rent runs $1,200–$1,500, $80,000 is a liveable salary with genuine savings potential.
How quickly do salaries grow in Australia?
In technology and healthcare, salary growth has been strong — 6–10% annually for high performers in shortage roles. In other professional sectors, annual increases of 3–5% are typical. The most significant salary jumps tend to come from changing employers rather than incremental internal increases; Australian workplace culture largely accepts this as normal. Award-covered roles increase by CPI adjustments set by the Fair Work Commission each year, which has ranged from 3.5% to 5.75% in recent years.
What is the tax rate on a professional salary?
Australia uses a progressive income tax system. On $120,000 gross: the first $18,200 is tax-free, the next tranche to $45,000 is taxed at 19%, $45,001–$120,000 at 32.5%, plus the 2% Medicare Levy on the full amount. The effective (average) tax rate on $120,000 is approximately 27.3%, leaving $87,240 net. The marginal rate — what you pay on each additional dollar — is 34.5% at that income level. The ATO provides an online income tax estimator at ato.gov.au.
Official Resources
Australian Taxation Office — income tax calculator and rates
Fair Work Commission — minimum wages and award rates
SEEK Salary Insights — real-time market salary data