Why a six-figure salary in Australia no longer feels like enough
A six-figure salary in Australia no longer guarantees the same comfort it once did. While nearly half of full-time workers now earn A$100,000 or more, rising costs have eroded its value. Adjusted for inflation, today's A$100,000 buys what A$67,000 did in 2010.
In 2010, only about one in ten full-time workers earned A$100,000 or more. By 2025, that figure had jumped to nearly one in two. Yet real wages—earnings after accounting for inflation—actually fell over the same period, as the consumer price index climbed by 3.8%.
Wages grew by 3.4% in the year to December, but this increase struggled to keep pace with soaring living costs. Rents in major cities surged dramatically: in Sydney, a two-bedroom flat rose from around A$450 to over A$750 per week, while Melbourne saw jumps from A$350 to A$600. Brisbane and Perth followed similar trends, with rents climbing from A$300 to A$550 and A$520 respectively. Population growth, limited housing supply, and high demand drove these increases.
Many Australians underestimate how uneven wage distribution has become. Studies show that when people learn the true scale of wage inequality, support for redistribution grows across political and income groups. Most respondents also agreed they would prefer fewer full-time workers earning low wages.
The gap between wage growth and inflation has reshaped what people consider a comfortable income. With cumulative inflation nearing 40% since 2010, households now spend up to 35% of their earnings on rent alone. This shift highlights the challenge of maintaining financial security despite higher nominal salaries.
The changing value of a six-figure salary reflects broader economic pressures. As wages rise but fail to outpace inflation, many Australians face tighter budgets. The gap between earnings and living costs continues to redefine financial comfort in the country.
