With the rampant inflation I haven't kept up, what is considered average and a good pay now? Assuming 1 person.
What is considered a good pay now?
NotAnAudiophile on 10/02/2022 - 21:39
Comments
And when it comes to investments, there generally needs to be a loss to claim a deduction.
But you are still better off not making a loss and paying the tax on the income
But you are still better off not making a loss and paying the tax on the income
I agree. Unless it's something like an investment like property where the immediate 'losses" can be offset by a potential capital gain later on.
Everyone seems to think that once someone is on over $180K, they can magically employ a tax professional and they'll come up with a magical strategy to reduce tax that people on less than $180K can't use. Unfortunately, it doesn't work that way.
I'd say 130k+ single income is good. 200k+ for dual income family with one kid. +30k for every additional kid and -30k if the house is paid off.
Wowsers. We've got 4 kids and a mortgage, so you're saying nearly $300k combined income would only be "good"? I think a the cost of living needs to come in to your equation somewhere.
We're about $200k combined and are more than comfortable but we're not living in Sydney either.Yeah this is for Melbourne and just my IMHO. And when I say good, I dont mean just living without financial worries and having a house. I mean bearing able to vacation every year, own some luxuries (like a pool, new gadgets etc every few years)
i’m in melbourne ….small house within 5 km of cbd where i work 1M+ ….. there are 2 parts what is a good income, but also what debts do you have ….if i didn’t have a mortgage 100k would be great with no school fees, etc …..with a mortgage and school fees $100k is tough ….. not sure how those food delivery people will ever own a home or the person serving me the chicken parma, etc ……if you look at the wages distribution, most of the population is less than $100k and the stats are never wages and no mortgage ….. lots of peop,e have debt for a house ….unless lucky ……
I'm on 130k+ and I'm in my 20s without a mortgage. I got to say if I never intend to get a home I think its great. But since i've been trying to get a home it's almost been impossible that would be close to friends, family and work.
My friend got a 3 story 3bdr townhouse about 25min from the city for $580k (Thornbury, VIC)
My gfs sister got a place further out (Lalor, VIC) for about the same price that's a standalone house with decent size garden, 4 car garage, extended car port from the garage, gazebo with a spa in it and the previous owners left behind a ton of furniture for them and a mini fridge in the gazebo next to spa.
I think there are some decent deals if you shop around and try to stick to your budget, unfortunately I'm not making anywhere near 100k currently.
If you don't plan to buy straight away you could try putting a portion of your income into EFT shares as they normally take 5-7yrs to realise gains and will help you save better than a savings account.
By your logic my family should be on $410k a year and yet we live very comfortably with $115k (before tax) + a small home business (avg. 20k a year after tax)
Like I said. It was IMHO. Lot of factors can skew the numbers like age of kids, residence location, difference between comfortable and good, etc.
Heck for a home business I would argue the numbers can be lot lesser as I have friends who earn less than me but are more well off as they claim almost all of their day to day expense as a cost of running their home business.
$70 million. It is a common mistake, but many people forget that their household staff are people too and your estate managers pay them.
Office manager, Butlers, Personal assistants, Chefs and their staff, nannies, tutors, security detail and drivers cost a pretty penny.
Probably a bit more, last week I was trying to find myself a place to hand wash my yacht fleet, wanted just one done soon and they could only fit me in in September, the bloody nerve…
Having to bring in crew from overseas on short notice is a bitch, plus they want a huge amount to boot.If they good tho, I'll see if they want to do the helicopters as well, they can just stay on and be the personal transportation cleaners, save some money bringing them back every quarter.
Now my bloody Butler wants a shoe shiner and a bird feeding staff, bloody madness! 70 million isn't cutting it these days. Be looking like 100 mill is needed, maybe more, trying to buy an island but have to bloody downsize to something like Victor island. Dredging fees for the marina and island market are shit at the moment.
200k i would consider good - i live in Melbourne though where everything is expensive and we have the highest taxes in the country
but it depends on expense if you own your home you can easily live off 700-800 a week
note; i do not earn 200k i wish i did
More like 200K after tax or tax free .
i would dare say before tax - but i am assuming you get al, public holidays and super
200k is around 2600 after tax a week most people i know would consider that great
care to elaborate on highest taxes in the country?
Our taxation system (at least for individuals) is extremely federalised compared to our counterparts (Income (incl. CGT) and GST collected nationally and consistent nationwide).
The only major taxes that individuals would pay on a state/regional basis are property and vehicle taxes (rego/CTP/Road Tax (for EV's and maybe all cars in Vic), although not LCT) which are largely one-off or marginal amounts compared to the big two mentioned earlier.We also have the highest stamp duty…..
for the record it is not my words
https://www.afr.com/policy/economy/victoria-is-the-hardest-p….
I mean you're not wrong, just that the article is more related to the corporate side of things with payroll being the major state based taxed levied on businesses. Not calling you out or anything, just thought saying a certain area in Australia was the highest taxed seemed peculiar given how consistent our taxes are.
If you were to ask me which state has the highest taxes for individuals on an overall basis I would also say VIC based on stamp duty (checked now and its equal to SA for a 800k/1m property, but notably more than the rest) and the motor vehicle taxes but again they are secondary level ones and wouldn't apply to a large number of people (at least on a annual or more often frequency).
I think you're technically correct in your judgement, but don't think the difference is stark enough for it to be a specific call out (unlike California vs Texas/Alaska for example).@JDMcarfan: there are other things to consider too cost of housing in melb is the 2nd highest in the country and some of the highest in the world
public transport is expensive
road tolls are rampant
etc
Outside of Melbourne Vic isnt bad however mornington has become unaffordable imo and Geelong is on its way.
I know NSW is 'bad' but i think Vic is the worst and hardest place to 'start out' on the flip side. However admittedly i have never lived for a prolonged period of time outside of Melb
@Trying2SaveABuck: Yeah but see that's all cost of living expenses and not taxes. It comes with living in a big city with very good salaries (by int standards), esp. and can be argued to be reasonable (not going there) for an area frequently voted most liveable in the world. Again you're right on the points, just drawing back to original comment re: taxes, and I think the statement is not valid per se.
Also as you'd know Sydney has it worse on both the property and tolls front (the latter making us the most expensive city in the world), we've just got better public transport and marginally higher salaries to offset@JDMcarfan: Fair i wouldnt argue with you, id say life would be very hard in Syd if you didnt make over that 180-200k mark (Assuming you didnt own a house)
As rent is pretty high and house prices are insane - i actually dont know how people afford to buy property in that City and have a family etc without help from family/inheritance etc
yep depends if you own your home or not ……
Gm fam,
Today will be a great day.
What if this is a dream before something worse happens?
Consumer price inflation came in hot today at almost 7.5% year over year.
Official inflation currently has its biggest gap over short-term interest rates since 1951. People holding cash in a bank or T-bills over the past year lost over 7% of their purchasing power. https://t.co/oh3lEFXVoX
Btw I'll be ok. I've protection.
Never thought I'd see the day where Pam wasn't the worst user on this site.
Nobody can pamp it like pam.
$90-100k. $60k is peanuts after bills
$1000 a day cash in hand, at least 4 days/week consistent work. Every tradie I have used seem to fit this category. This is the way…
The gov is looking away and us salary earning(& tax paying) plebs have to pay for their welfare, asset depreciation, negative gearing and "low income cards", etc. etc. Rant over!
Very true and I do feel sorry for all those people doing long degrees when a simple tafe course earns you way more :)
I guess at the time nobody foresaw it .It's just shifting income amounts and timing based on physical prowess (tradie) or mental prowess (uni).
I know 70 year old solicitors who love their work and still earn top dollar. Not so many 70 year old brickies however.
$1000 a day cash in hand, at least 4 days/week consistent work. Every tradie I have used seem to fit this category
What if there were a monetary system that prevents people from hiding how much they get paid?
Would us salary earning(& tax paying) plebs support such a monetary system?
The elites already hide their real "income" and it is unpreventable. What if there is a monetary system that does not need to care how much people get paid and at the same time reduce the gap between the richest and the poorest.
A deflationary monetary system.
What do tradies do with all this cash? Surely it is suspicious if they deposit it into their bank account…
For starters, a fully loaded and fully depreciated Wildtrack for the Mr and an AMG for the Mrs.
They blow it on drugs/women and gambling .
and waste the rest
They can buy supplies and tools with cash. Eat out, buy brand name clothing, handbags, gold, alcohol, jet ski, etc, all paid in cash.
They can fund investments via proxy. The possibilities are there as long as the current monetary system allows it.
They pay other tradies in cash to renovate and maintain their homes, cars, etc, and buy their groceries, restaurants, etc
Yeah I suppose they can renovate their houses with cash. Capital improvements..
Portion of income on books, portion cash.
Legal income pays mortgage, buys investments and properties, tops up super and school fees etc.
Cash component pays for perishables, eating out, clothes, o/s holidays, second late but model cars. Essentially a consumable lavish lifestyle.
The legal component is heaps anyway but when your cash component pays for everyday standard of living expenses, it's a complete rort on the rest of society.
TAB account, put into and pull out of pokies, pay bills at the post office in cash
To be honest it is not that hard to earn $1000 a day even in simple businesses. Lawn care, fixing computers, pressure washing driveways, cleaning etc all have potential for that. You do need to invest in some equipment to get started but it doesn't take long to pay that off. Lots of benefits and certainly beats a soul crushing 5 day week as an employee.
How many lawns do you need to mow for 1000 a day?
You would want to charge a minimum of $100 per lawn. Depends how many you can get in a close vicinity. Some people pay much more than that too, and if you can tack on some extra jobs at the same house it is easier.
@Korban Dallas: Lots of people. Depends where you live I suppose. Anyone charging less than that would go broke in no time. You have to factor in time taken to drive to the job, mower maintenance, fuel usage, insurance, invoicing, taxes etc..
@Korban Dallas: Yeah well you can't mow the lawn or pressure wash your driveway while you're at work so of course they're work related expenses!
@Mr Haj: You've clearly never had a quote for these services. Try asking Jims or VIP for a quote sometime.
$100 for mowing + edging is cheap. And I think you will find most people who pay for these services are time poor high income earners, and they're happy to pay a professional to take care of things.
@nubzy: ‘ $100 for mowing + edging is cheap’
You are talking crap.
Nobody is making $1000/ day cutting lawns.@JelIyfish: I said there is potential for it, and there absolutely is. Most would make more like ~$500 a day.
$100 for mowing + edging is cheap
My professional (not neighbourhood kid) charges $25.
Comes in his own car, trailer, mower and takes away the clippings.He has told me that he makes over $100k a year doing this.
It sounds like you have found a free money hack and I want to know more about dipping into this infinite ATM.
Lawns. Working all day in the summer heat in a physical job with little work in the cooler months. Well I guess there's less need to worry about saving a lot of super I suppose.
Also need to factor in petrol expenses to get to all your clients and chiropractic bills.
Our lawn guy charges $50. He's quick and efficient but there's no way in hell I'd give up my currently working from home desk job to do what he does.
To each their own. Some people like the outdoors and it keeps them fit, beats sitting at a desk taking orders from the boss and waiting for a heart attack to happen. I don't know about doing it full time but I think it is a good business, lot of potential to branch out into other areas like gardening, laying new turf, pressure washing etc too. $50 is bargain basement rates (unless your lawn is tiny), no one with an ABN/insurance charges that little where I am and those who do will burn out in no time.
@nubzy: I run a few Kms before work most days at the local park. Fitness is pretty good for my age and I'm certainly in better shape than I would be if I'd been mowing lawns in the heat for 20 years.
Physical jobs are ok when young, but most have some sort of back or knee problems etc by middle age.
Peanuts compared for what you're paying for the government to funnel your taxes into private contractors that they cough have shares in. They want you to blame welfare. Meanwhile their cousin enjoys millions going through a security agency with no offices and a PO box in the Caymans…
Depends. Renting/mortgage/own. Kids/no kids.
You should be able to live a decent life on anything north of $85k.
Now that means no spending frivolously. No UberEats, crazy car loans, racking up credit cards, shopping as a hobby, basically all the stuff society and marketing tells us to do everyday but is not needed to be happy.
$315k per week.
Macquarie CEO?
preposterous! i wouldn't accept anything less than 320k per week
how could you survive on such a pittance ???
Depends where you live. In Sydney 300k in small towns probably half that
We should ask Joe Hockey that
To get a decent answer, you need to provide a specific question. Is this a single person living in Sydney for example? Or part of a couple living in Brisbane with no kids? Or part of a family living in regional South Australia. All very different answers.
From my experience, the amount needed is much higher when trying to save for a house deposit and renting rather than just paying a mortgage.
The right answer should be what is the pay required to put a roof over your head in the place you live in. Sydney definitely needs $100k +.
Anyone making $100k is doing very well.
Problem is, these days we equate "doing well" with owning a house in a preferred suburb (with likely a $2m+ price tag in the major capitals), having a less than three year old car, going on an annual overseas holiday and another domestic one, regular eating out, etc., etc.
These things require significantly higher income, but they've somehow been normalised over the last 20 or 30 years.
More debt to work to 78Y.
"That's the way to do it"
This guy!
Should we not be constantly seeking to elevate the standard of living?
If it's stressful or constant working overtime then I'd rather have less materialistic goods. Not everyone views 'standard of living' in terms of material wealth.
Not at the cost of physical/mental health, social connection and environmental degradation.
Woah woah woah.. hold your horses, who said anything about a car. I just want a house in a "preferred suburb" of.. the west.. I can't even get one in the west cause they are worth 1.5m.
If you're making 100k and own your own home/have a reasonable mortgage you're doing pretty well. If you're single and renting its not easy to save.
Australia average salary is $67,304 which is roughly where I'm at wage wise and paying a house off. I don't have the expenses a lot of people do though I don't smoke rarely drink make my own lunch, rarely get takeaway, try to resist impulse buying and i drive a average car.
I dont have far to go to work which means less fuel costs and more time with the family and I get a 9 day fortnight yes it would be nice to earn another 5 to 10 thousand but the work life balance is the real benefit for me.
My brother on 150,000plus asked me how I could afford a house but when I looked at his spending that said it all.
A lot of people out there don't compare prices or they like to put things on credit or afterpay because they want the best phone etc it all adds up.
A lot of people out there define who they are by their income.
This ^. its not what you earn but what you burn.
… or they like to put things on credit or afterpay because they want the best phone etc it all adds up.
Bingo.
and i drive a average car
toyota?
I agree - but also lots of people have health issues which cost a lot more
Up to people to decide how they want to measure success in their lives. It's all equally meaningless at the end of the day. Don't think people should be judged one way or the other.
Salary, power/influence, happiness, flashy/expensive lifestyle, family, whatever.
Avg rent for single person say 400 a week - 30% rule - so 70K (no taxes) so around 85k-90K
Surprised you dont have more upvotes. This is actually a reasonable take.
Enough to live comfortably on and still put some money away for a rainy day.
It’s all relative to a person’s lifestyle/ financial situation.
and still put some money away for a rainy day.
Do you spend more on rainy days?
Less, because there's nowhere to go. And my aircon ain't on.
Only if roof starts leaking
I live on around 20k or less for last 10 years and it's alright.
Some people can make it work. And having free time and autonomy to enjoy life as you see fit is priceless. Money isn't everything. Personally the thought of a 30 year mortgage/blowing $400 a week in rent and working a soul sucking job 5 days a week for 30+ years makes me sick to my stomach. I have great respect for those who reject societies expectations and live life on their own terms.
This! My brother has no intention of owning a house, does freelance work and lives within his means. Meanwhile here I am, apparently living the Great Australian Dream: slaving away 5 days a week so I can pay off our giant
moneypitmortgage :PI wonder how he will fare later in life though, you will always have the option to cash-in some of your assets.
Seriously the older I get the more I am thinking about this. Is the rat race really worth it and is this 'it' for life? Are we all just on the wheel and are too blind to see?
I would think that people generally dont take 30 years to pay off their mortgage? But I could be wrong.
150k + 100k combined couples income with kids seems pretty normal in Syd. Id say your well off if your combined is >300k. Id say your not doing well if combined is <100k.
Good is subjective.
If you can budget to live below your means and save 20%, then you're winning
Would say 75k in Adelaide.
At that point your beyond most uni entry level jobs, and need a skill set or expirence to get that.In June 21 $59k was typical. $211k is the top 2%. $188k is the top 3%.
A few friends of mine have said that anything below $150,000 a year is unliveable, like peasantry.
They do all that fancy advisory consultancy business BS, contributing to society in mysterious ways I’m sure
I didn’t tell them I earned far less than that.
Goes without saying that value to society is different for everyone.
I guess these elite high earning pro flyers are more important than the farmers that grow food.
And far more important than the healthcare nurses and doctors working long hours in the pandemic.
I’m sure when a crisis hits and push comes to shove, these corporate superhumans will save us all from oblivion.
Now now…you don't want to sound like a Communist. The market has spoken and values these people more.
@Gowrie29: I think it's a misconception that anyone on the top tax bracket is claiming deductions left, right and centre and owning lots of investments that are used to reduce tax. It often makes me wonder whether I'm missing something.
Unfortunately, as an employee, I don't have much to claim as a deduction for my employment (unlike business owners who can be a bit more creative). And when it comes to investments, there generally needs to be a loss to claim a deduction. I'd love to reduce my tax bill if I could. At the moment it sits at just under $100K/year. I don't have a wife or kids that I can make use of to split incomes or anything like that either.