The salary that no one feels ‘rich' earning in Australia right now
A salary that, for a significant portion of the population, would have once been considered a dream has now become completely undesirable for Aussie workers.
Earlier this year, news.com.au launched The Great Aussie Debate, a wide-ranging, 50 question survey that has uncovered what Australians really think about all the hot topics of 2025.
Over two weeks, more than 54,000 Australians took part in the survey, revealing their thoughts on everything from the cost of living and homeownership, to electric vehicles and going shoeless in supermarkets.
As part of the survey, we asked people what salary they would need to earn to consider themselves 'rich' in 2025, with the majority of respondents – 56 per cent – putting that figure at over $250,000.
However, the results also revealed the salary that Aussies across all age ranges believe is no longer enough.
Just 2.6 per cent of people said they would feel rich on a $80,000 to $100,000 income.
Not too long ago, many would have considered a six-figure income be more than enough but, with the ongoing cost of living crisis, people's pay cheques are no longer stretching as far as they once did.
The typical full-time Australian worker earns $90,416 a year, according to the latest ABS figures.
And it's clear the typical full-time Aussie employee is not even close to feeling 'rich' in 2025.
While the cash rate finally dropped in February to 4.10 per cent, people are still reeling from more than a year of rates being held and, prior to that, a period of prolonged, brutal rises.
Rent prices have also skyrocketed, with the median weekly national rent now sitting above $600.
Grocery prices are continuing to soar and wages aren't rising fast enough, culminating in people being caught in a frustrating cycle of barely making ends meet each week and, as a result, being unable to save.
One Aussie worker recently branded a $100,000 salary the new $60,000.
Luna, a 28-year-old worker living in Sydney and earning $150,000, told news.com.au last year that she doesn't think the six figure income is enough to live off anymore.
'I truly believe $100,000 is the new $60,000. You can live off $100,000, but you're penny-pinching,' she said.
'I'm very comfortable with my lifestyle, and I'm happy to keep it up. I can still put money into my savings and afford things that I need, but sometimes I think, and not in a pity way, how are other people doing it?'
The grim revelation comes as new research from financial comparison site, Finder, revealed one in three Australians surveyed feel pressured to live a lifestyle they can't afford.
The survey of more than 1000 people found Aussies are feeling the pressure to live beyond their means in order to keep up appearances, such as going on holidays they can't afford and driving cars beyond their budget.
Housing, clothing and memberships were some of the other top areas where Aussies are spending more than they think they should.
Sarah Megginson, personal finance expert at Finder, said giving in to this pressure to keep up can mean many years of debt.
'Draining your savings to keep up appearances is a disaster waiting to happen, but it's a reality that many people are living,' she said.
'Sometimes it's one large, flashy purchase, but most of the time it is a pattern of behaviour. You charge little things you can't really afford to BNPL or whack them on a credit card.
'But over time those debts can compound and can become a significant problem.'
Ms Megginson said that social media has amplified the pressure for people to spend outside of their budget in order to feel like they are keeping up with the lifestyles they are seeing online.
'It's important to remember that what you see online isn't always reality – a lot of the flashy lifestyle you're seeing is built on debt,' she said.
'Try to block out that noise and focus on your own financial goals instead of keeping up with others, and you can build long-term financial security rather than chasing short-term satisfaction.
'Constantly comparing yourself to the possessions and experiences of others is a very slippery slope.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
27 minutes ago
- News.com.au
Developers warned to ‘accelerate project launches' in one Aus state
One Aussie state has been warned to prepare for more demand for new homes and land as other states flatline in popularity or drop in demand altogether. The latest OpenLot New House Enquiry Index has revealed that Queensland was the only state to record positive demand growth for new homes in the first quarter of this year, achieving an enquiry index of 233.3. This indicates that QLD buyers make 26 per cent more enquiries than in the next-best state, South Australia (SA). 'Queensland also has the highest enquiries per buyer, aka absolute demand,' the report said. The OpenLot New House Enquiry Index is based on the average number of enquiries made by each new house and land buyer. Queensland's closest rival was South Australia (SA) which had an enquiry index of 185.1 but that represented a decline since the first half of last year, the report revealed. Western Australia (WA) and SA experienced significant drops in demand, with WA down 20.8 per cent and SA down 12.4 per cent. NSW and Victoria remained stable but showed signs of softening, with NSW nearly unchanged at -0.4 per cent and Victoria dropping by 5.4 per cent. Overall, demand for new stock fell 1.3 per cent nationally compared to 2024 but they remained above historic levels, the report revealed. founder and CEO Qi Chen said the findings come from their real-time measure of buyer interest based on average enquiries made each quarter by theirr more than 130,000 users. 'National growth has stalled, dipping by 1.3 per cent year-on-year,' Chen said. 'Still, demand remains well above historic norms and sits at the third-highest level ever recorded. 'However, each of the states is its own market, which means the national number obscures as much as it reveals. 'Of all the states, Queensland is the standout, with growth in enquiries per user and total buyer enquiries leading the nation. 'That's driven by a shortage of land, so buyers have to work harder to find what they are looking for. 'We expect more land to become available in Queensland in the second half of 2025.' Chen added that WA and SA were both lagging significantly behind the other states. 'Both states experienced double-digit drops in buyer interest in the first quarter compared to 2024,' Chen said. 'Victoria and NSW are holding steady, but both states show signs of a potential softening. 'That's a trend we will watch over the next two quarters. 'For developers, there's a clear case to accelerate project launches to meet demand in Queensland. 'In Western Australia and South Australia, buyers may need new incentives to re-engage.' It comes after Villawood Properties announced that construction has begun on a new affordable housing development in Brisbane southern Redland Bay area. The $250 million Baya development will see 224 blocks made available, with a special $20,000 grant for essential workers who get on board. Villawood Properties CEO Alan Miller said an important part of this development was giving care workers access to affordable homes at a reasonable distance. 'The whole issue is the whole of southeast Queensland is pretty unsupplied with housing options,' he said. 'Getting people into housing in locations where they work is really the most important thing.'
News.com.au
an hour ago
- News.com.au
Major retailer introduces sweeping new ban on all stores nationwide
The country's third largest pet store is set to introduce sweeping new rules across its stores and has urged other retailers to follow in its footsteps. PetO announced it would ban the sale of live animals across its 58 shops nationwide. Last year, the retailer acquired 41 pet shops and 25 veterinary clinics that were divested from Petstock and Woolworths, propelling it to become the third-largest pet retailer in the country. The business, which was founded in 2007, said the sweeping changes were an effort to encourage more responsible pet ownership among Australians. 'The transport, storage and sale of live animals in pet shops is ethically problematic and can lend itself to issues relating to animal welfare as well as irresponsible ownership of pets,' a statement read. PetO said the business would likely take a hit in its revenue in the short term but anticipated the change would boost its annual revenue to a projected $250m by 2028. Despite the ban on selling live animals in its nationwide stores, the pet retailer will continue to operate its in-store adoption events, where the public can come in and adopt dogs and cats from animal shelters. PetO is now urging other major pet shops to follow in its footsteps and halt the sale of live animals in-store. According to Animals Australia, while the majority of pet sales are completed online, about 15 per cent of cats and dogs are purchased from pet shops nationwide. There are no blanket rules about selling live animals in pet shops across the country, with states implementing their own rules and regulations. In Victoria, pet shops can only sell live animals from approved sources, including registered shelters, foster carers and pounds. Queensland's pet shop code recommends pet retailers acquire animals, such as cats and dogs, from reputable sources 'who can demonstrate compliance with accepted standards'. However, the Queensland government said compliance to the code was not compulsory. In NSW, pet shops are able to sell live animals and have been instructed to follow the code of conduct to 'protect the welfare of the animals in their care'.
News.com.au
an hour ago
- News.com.au
From $40k to 38 homes: how to build a $14m property empire
An Aussie property mogul who turned a measly $40K into a staggering 38-property empire is revealing his secrets to help battlers break into Australia's brutal housing market. A standout among property investing peers, Bharat Patel was once a cash-strapped international student at the University of Technology in Sydney and now sits on a jaw-dropping $14m asset base – buying five properties so far this year alone across Queensland, Tasmania, and Darwin. His bold claim is that even if you're scraping by on $50k a year right now, you can still buy property in Australia. Inside slumlord's crumbling empire: derelict, unliveable, worth millions Mr Patel, who set up Cashflow Properties to help others repeat his success, believes a mindset change is required for his shockingly simple strategy of starting small but thinking big, leveraging the bank's money, zeroing in on growth markets – rinse and repeat 40 times. 'A strong mindset is important, even if you are someone who is currently on a low income $50,000 or $60,000, you can still you can buy property in Australia as long as you know where to buy your first property. If you have $30,000 to $40,000 yes, you can still buy property in Australia in 2025.' 'It's all about buying the cheaper property first, leverage from the bank, and you have to be ready to buy the next property where market is moving so you are buying in a growing market.' 'Your equity will be there to support you for the next property as long as you buy the right property at the right time with the right price tag.' Shock twist as former Virgin CEO to tear down $17m mansion For him it is all about buying cheaper first and then snowballing rather than going for $2-4m home first off and being stuck with it. 'Start small scale, and don't just sit back and relax. Use your opportunity if you have it.' 'It was extremely challenging for me to buy 10 properties initially in 10 years, and then it started getting easier because I knew the success, the resources, the markets which are going to boom, so that I made decisions quite easily.' His book called 'From an international student to owning 30 properties in Australia' is a step-by-step guide to building a passive income stream for retirement, and available from Amazon, Apple store, Google and in bookstores like Booktopia and Dymocks now. 'I'm purchasing my 38th property as we speak, but in the book I just mentioned my first 30 properties and how I started with almost nothing after my university degree at UTS, and then, slowly, one property at a time, I just built my property.' Inside new liberal leader's property portfolio 'The main purpose of the book is to give confidence to people who may be on a low salary, and are thinking that in Australia, they cannot buy any property – which is false. As long as you understand where your position allows you to buy something as a stepping stone, you can always build your property portfolio later.' He used a combination of purchase vehicles to lock in his last few five homes, buying one via superannuation, and four in personal names and a family trust he created. 'It depends on which property it is, where I am buying, and what the purpose is out of that property as well. The one I purchased in Darwin was from our family trust. Noone was buying in Darwin, but I can see there are lots of opportunities in Darwin nowadays.' He used superannuation to buy a Gladstone property in Queensland. 'It's doing extremely well, similar to what happened growth-wise in Townsville, also Rockhampton is also moving up as well.' Mr Patel said the affordable stock of properties across Queensland made it a strong target for investors. 'Obviously the whole of Queensland is on the next horizon in terms of infrastructure because of the Olympics coming, not only Brisbane but the majority of the regionals are also experiencing the boom. So because of the affordability, because of the low stock, and because not many properties are going to be available due to the construction crisis, it's definitely a growth corridor.' Mr Patel said he was now looking to diversify state-wise too, looking at Northern Territory and maybe one more in Tasmania, as well as commercial properties. 'My ultimate goal is to hit 50 properties, the sooner, the better. I will try. I will work on my debt consolidation strategy as well because obviously every property brings you debt. At some stage you have to consolidate your debt again, it is all good debt so depending on my age and retirement plan, I will start consolidating my debt after hitting 50 properties.'
