Have you ever wondered how your income compares to other Australians?
Well, each year the ATO publishes a breakdown of the taxable income distribution of Australian workers.
So let's have a look at how you compare...
What is the ‘median’ income in Australia?
According to the Australian Bureau of Statistics, the median Australian employee earned $65,000 in 2022.
This figure captures both full-time workers and part-time workers.
In other words, half of all Aussie workers earned more than this and, of course, the other half earned less.
While incomes have increased steadily over the past few decades, clearly they're not keeping up with inflation today.
In 1975, the median employee earned $6448 per year.
In the 47 years since then, wages have grown by about 5 per cent annually, taking median employee income to where it is today.
What about the wealthiest Australians?
ATO stats for 2019-20, the most recent year for which data is available, the median taxpayer – that is, the person at the 50th percentile – reported a taxable income between $60,326 and $61,264.
- If your taxable income was $131,501 or higher, then you earned more than 90% of other Australians.
- If your taxable income was more than $253,066, then you took home more than 99% of Aussie taxpayers.
What about wealth?
While analysing incomes is interesting, what about wealth?
The ABS provides these stats and we already know that most Australians' household wealth is made of residential real estate (predominantly their homes).
Then there are shares and superannuation to take into account and net wealth has risen, despite Aussies taking on more debt.
The data show the median household had a net worth of $579,200 in 2019-20.
Here's where Australia's wealthiest people live
Australia's wealthiest people tend to live in our capital cities, particularly in New South Wales and Victoria.
Sydney is home to many of the country's wealthiest individuals and families, including several business leaders and entrepreneurs.
Melbourne also has a significant number of wealthy residents.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State May 14th 2024
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – May 2024
- Also read:Melbourne property market forecast for 2024
- Also read:Sydney property market forecast for 2024
- Also read:Brisbane’s property market forecast for 2024
Other cities where Australia's wealthiest people are concentrated include Perth and Brisbane.
These cities have strong economies and high demand for luxury goods and services, which attracts wealthy individuals.
The top 10 occupations of Australia's wealthy
There are several high-paying jobs in Australia across various industries.
According to data from the Australian Bureau of Statistics, some of the highest-paying occupations are various types of medical practitioners.
Looking at the chart below it's clear the highest-paying jobs require advanced education and experience and are often concentrated in urban areas with high demand for skilled workers.
How do we compare internationally?
Australia is considered to be one of the wealthiest countries in the world, with a high standard of living and a strong economy.
Additionally, we enjoy a relatively low poverty rate and a high level of income equality compared to other developed countries.
While Australian household incomes are the seventh-highest in the OECD mean household net worth is third-highest.
What about gender?
Gender inequality in wages remains a significant issue in Australia.
According to the Workplace Gender Equality Agency, the national gender pay gap in Australia currently sits at 14.1%, with women earning on average $251.20 less per week than men.
Then just look at the extent to which men dominate higher-paying jobs.
- Of the 10 per cent of taxpayers who earned more than $131,501 in 2019-20, about 70 per cent were men.
- Meanwhile, women comprised almost 60 per cent of the 20 per cent lowest income earners.
Source of charts and commentary: ATO, ABS and Australian Financial Review
This article was first published in July this year but has been published for the benefit of our many new readers
