Is $100K Still a Good Salary in Australia in 2025? The Six-Figure Myth Explained

Is $100K Still a Good Salary in Australia?

A decade or two ago, earning six figures meant you’d “made it.” The idea of a $100,000 salary came with expectations of comfort — a home, a reliable car, a few holidays, and a sense of financial freedom.
But in 2025, that image no longer holds up. The meaning of $100K has changed — dramatically.

The Numbers Don’t Tell the Whole Story

According to the Australian Bureau of Statistics (ABS), the average full-time wage in 2025 is around $108,000. That figure is heavily skewed by high-income earners — executives, specialists, and senior tech workers.

A more accurate measure is the median full-time income, sitting closer to $90,000. If part-time and casual workers are included, the national median falls further to around $68,000.

So while $100K technically puts someone above the middle, it’s not as far above as it once was. Economist Angela Jackson summed it up:

“A hundred thousand used to buy a certain lifestyle — now it just keeps your head above water in major cities.”

The Reserve Bank of Australia’s inflation calculator shows that $100K today equals about $75K in 2015. In other words, the same salary now buys a quarter less than it did ten years ago.

The Cost of Living Has Changed the Game

Housing is the clearest example.
In the early 2000s, the median Sydney home cost around $400,000. By 2024, that figure had reached $1.6 million, according to CoreLogic.
Melbourne’s median sits near $955,000.

Even rent has taken off. Data from SQM Research shows Sydney rents have risen more than 60% since 2019, while wages have grown less than 20% in the same period.

Groceries, childcare, utilities, and transport have followed the same pattern. For many Australians, the maths simply doesn’t work anymore.

Lifestyle Creep and the New Normal

Inflation isn’t the only pressure. As incomes rise, expectations rise too. People benchmark their lifestyle against peers, not pay scales.
When everyone around you earns similar money, six figures stops feeling special.

The HILDA survey found that one in three households earning over $100K still report financial stress. That’s not about poor money habits — it’s a reflection of how expensive “normal life” has become.

The Gap Between Median and Reality

Income statistics often mask big differences across regions and generations.
Someone on $100K in Perth or Adelaide can live relatively comfortably. The same income in inner Sydney or Melbourne might barely cover rent and bills.

Older Australians, who bought homes decades ago, have lower living costs and more wealth. Younger workers face higher rents, HECS debt, and shrinking homeownership rates.

According to ABS data, Australians under 35 now hold less than 2% of total national wealth, despite making up nearly a third of the workforce.
It’s little wonder people joke that “$100K is the new $75K.”

Superannuation and Salary Confusion

Salary figures can also be misleading. Some employers advertise total packages including super, while others quote base salary plus super.
That 11–12% difference can make two “$100K jobs” very different in real take-home pay.

And of course, superannuation doesn’t help with day-to-day expenses — the measure most people care about.

What $100K Looks Like After Tax

A $100K annual salary nets around $72,000 after tax, or about $6,000 per month. Once you factor in costs, the picture tightens fast.

For someone renting in Sydney or Melbourne, a typical monthly breakdown might look like:

That leaves only a few hundred dollars in buffer — before saving for travel, kids, or a car.

Expectations vs. Economics

This isn’t about greed. It’s about how quickly the baseline of “getting by” has shifted.
In 2003, a teacher on $55,000 was considered well-paid. Adjusted for inflation, that’s about $97,000 today. So the numbers haven’t changed much — the lifestyle has.

We now live with higher prices, higher debt, and higher expectations. The emotional return on income has dropped. As some have noted: The only people who think $100K is a lot of money anymore are 16-year-olds and politicians.

The Bottom Line

So, is $100K still a good salary in Australia?
Yes — but it’s no longer a safety net. It’s enough to live on, not enough to coast.

Comfort now depends on postcode, household structure, and financial discipline. The cultural meaning of six figures has shifted — from a symbol of success to a marker of survival.

Written by Aidan Walmsley
Trident Accounting