Living Wage Calculator (Australia)
Estimate the weekly living wage for your capital city to understand the income required to meet basic living standards.
Quick Use Samples
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Living Wage Comparison
The estimated weekly after-tax living wage for Sydney is $1,250. Your weekly wage is $1,100. This means you are $7,800 per year below the estimated amount needed for a decent standard of living.
Annual Comparison
To maintain a decent standard of living in Sydney, it's estimated you need an annual after-tax income of $65,000. Your current annual income is $57,200.
Weekly Wage Comparison
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What is a Living Wage?
A living wage is the income a person needs to afford a decent standard of living, covering essential needs like food, housing, and utilities, while also being able to participate in society. It is different from the minimum wage, which is a legal minimum, whereas the living wage is a 'real world' benchmark.
Behind the Formula
This calculator uses up-to-date data that models the typical weekly expenses for a single person in major Australian cities. It includes costs for housing (rent), utilities, groceries, transport, healthcare, and a modest amount for social participation. The figures are based on research from various Australian universities and social research centres.
Expert Insights
- The living wage highlights the gap between basic survival and a decent life. In many Australian cities, the legal minimum wage is not a living wage, meaning many full-time workers struggle to make ends meet.
- Housing is the single biggest driver of the high living wage in Australia. The cost of rent in cities like Sydney and Melbourne places enormous pressure on lower-income households.
- A living wage benefits not just individuals, but the whole community. When people have more disposable income, they spend it in their local economy, supporting small businesses and creating jobs.
Actionable Tips
- Use this figure as a benchmark when negotiating your salary, especially for entry-level roles. It provides a data-driven anchor for what it truly costs to live.
- If your current wage is below the living wage, explore options for increasing your income, such as upskilling, seeking a promotion, or looking for a job in a higher-paying industry.
- Support businesses that are accredited as 'Living Wage Employers'. This is a growing movement of companies that have committed to paying all their staff a living wage.
Real-World Examples
A student moving to a new city for university
A student uses the calculator to understand the real cost of living in Melbourne. This helps them create a realistic budget and determine how many hours of part-time work they'll need.
A hospitality worker on minimum wage
A full-time hospitality worker sees that their minimum wage income is $150 a week less than the estimated living wage for their city, highlighting the financial struggle they face.
A business owner setting fair pay
A small business owner uses the calculator to ensure the wages they offer their staff are at or above the living wage, helping them to attract and retain good employees.
Glossary of Terms
Living Wage
The income required to afford a decent standard of living and participate in society.
Minimum Wage
The legal minimum hourly rate an employee can be paid in Australia, set by the Fair Work Commission.
Rental Stress
A term used when a household in the lower 40% of incomes spends more than 30% of their gross income on rent.