Australian full-time wages just passed an historic milestone, so why do we all feel broke?

News.com.au

2 days ago

The average Australian full-time worker is now earning more than $2000 a week for the first time in history.
New figures from the Australian Bureau of Statistics (ABS) show the average ordinary full-time weekly earnings for adults hit $2011.40 before tax in May.
It comes to a 4.5 per cent rise compared to the same time last year.
Men working full-time are now earning an average of $2106.40 a week, while women earned $1864.10.
'This is the first time that average weekly ordinary time earnings for full-time adults have been greater than $2000,' ABS head of labour statistics Sean Crick said.
'Annual growth in May 2025 remained high at 4.5 per cent, a rise of $86.60 a week from May 2024. This was just below the annual growth rate of 4.6 per cent in the year to November 2024.'
Across the states and territories, the ACT recorded the highest average full-time weekly earnings at $2236, followed by Western Australia at $2154.
Tasmania was the lowest at $1793.
Industry data showed mining workers were the highest paid, averaging $3174 a week, while employees in accommodation and food services earned the least at $1459.
Public sector workers earned more on average ($2167) than those in the private sector ($1966).
The ABS also reported the unemployment rate fell to 4.2 per cent in July after a small increase the previous month.
Despite the historic wage milestone, many working Australians report feeling poorer than ever, as the rising cost of everyday essentials continues to outpace income growth.
A recent Canstar survey found the average weekly grocery bill for a family of four has jumped 11 per cent in the past year, rising from $215 to $240.
Weekly pay packets are also being eaten away by housing pressures. Renters are facing historic challenges with availability pushing up prices.
Sydney's median weekly rent has hit a whopping $730, while firstâ€'home buyers are finding the market increasingly out of reach.
Research shows that to buy a medianâ€'priced house outright without mortgage stress, a household now needs an annual income of about $203,000 across the country, and nearly $300,000 in Sydney.
Labor has acknowledged the 30 per cent of Australians with mortgages being kicked by interest rate rises, but renters continue to feel left out of the conversation as their excess cash, normally put away for a home deposit, gets set aside to fund their landlord's mortgage via a rent rise.
A further study by the Australia Institute found that 72 per cent of respondents felt their wages had grown slower than the prices they're paying, while 53 per cent said their financial situation had worsened over the past two years.
In fact, nearly half of all Australian workers believe their salaries are not keeping pace with living costs.
According to the Employee Sentiment Index, 45 per cent of employees report growing financial strain, and many are just managing to get by.
It's all a bit wonky in 2025
By and large, Australia's baby boomer generation, and even some of the next, was able to build a family on a single wage.
They were also able to capitalise on dirt-cheap real estate, use it to leverage more purchases, and then profit from historically unprecedented price rises.
That idea is a fever dream for young Aussies today, unless they've somehow landed themselves a quarter-million-per-year job or fallen into a trust fund or inheritance.
Associate Professor at the University of Sydney Gareth Bryant, explains that the housing 'phenomenon' in the early 2000s saw a rapid increase in the home-price-to-income ratio that has never been rectified.
He says that the high interest rates of the late 80s and 90s meant home ownership was hard, but it was mostly an 'income issue', meaning you could eventually work your way up to a position to afford high rates.
But now, with the average dwelling costing seven to 10 times the average Aussie wage, it's become more than just an income issue.
'The problem now is you still need high income but a reasonable amount of wealth to have the deposit,' Prof. Bryant told news.com.au.
'It used to be much more possible for those with good jobs to save for a deposit.
'For a lot of people in decent jobs, it's really difficult to save, unless you've got some kind of additional assistance.'
He says the rise in housing has naturally forced millions to enter the housing market later in life, or not at all.
'There's a delay. People are buying and forming families later, there are many who will be lifelong renters, or 'generation rent'.'
In 1980, Australian households typically spent about 60 per cent of their disposable income on essential living expenses, including housing, food, transport, and utilities. This left a modest buffer for savings or discretionary spending.
Almost one in two households were single-income, with one partner typically staying at home.
By 2025, despite higher average incomes, the proportion of income required for living costs has increased significantly. Rising housing costs, particularly in major cities, have forced many households to allocate a larger share of their income to essentials.
Today, around 73 per cent of families with children under 15 have both parents employed.
We have also seen the great devaluing of tertiary education.
In 1980, approximately 5 per cent of Australians aged 15-74 held a bachelor's degree or higher.
By 2024, this figure had risen to a whopping 33 per cent.
In the 80s, you could build a family on one income, even if you were among the outstanding majority (95 per cent) of those without university qualifications.
Today, the story is the opposite, with several couples claiming their monthly expenses are too high to consider children, despite both working in fields requiring tertiary educations.
But yes, wages are 'higher than ever'.