Are You in the Top 10%? What Your Salary Really Means in Australia
We analysed ATO data to show exactly where your income ranks. Most Aussies have no idea how they compare—prepare to be surprised.
Reckon you know where your salary ranks in Australia? Most people are dead wrong. We analysed the latest ATO data to show exactly where you stand—and the numbers are eye-opening.
The Australian Income Percentile Breakdown
Here's the truth about Aussie incomes in 2025:
| Percentile | Annual Income | What This Means |
|---|---|---|
| Top 1% | $350,000+ | You're earning more than 99 in 100 Aussies |
| Top 5% | $180,000+ | Solidly high income |
| Top 10% | $130,000+ | You're doing very well |
| Top 25% | $90,000+ | Above average Australian |
| Top 50% | $65,000+ | You earn more than half of Aussies |
| Median | $55,000 | The true middle |
Reality check: If you earn $130,000 AUD, you're in the top 10% of Australian earners. Yet most people at this level reckon they're just "comfortable."
The Great Australian Delusion
Here's the thing:
- 70% of Aussies think they're "average" earners
- People on $150,000+ say they're "middle class"
- Even $250,000 earners in Sydney don't feel wealthy
The Sydney/Melbourne Effect: House prices of $1.5M+ make high earners feel broke. But nationally, $130K puts you ahead of 90% of Australians.
What Each Income Level Actually Buys
$65,000/year (Top 50%)
- Renting in capitals, buying in regions
- Decent car, manageable budgeting
- Some super contributions beyond compulsory
- Domestic holidays
$90,000/year (Top 25%)
- Apartment in capitals, house in regions
- Good lifestyle
- Building investment portfolio
- Annual overseas trip
$130,000/year (Top 10%)
- House in outer suburbs of capitals
- Premium lifestyle
- Significant super contributions
- Multiple holidays
$180,000/year (Top 5%)
- House in good suburb
- Investment properties becoming possible
- Kids' education funded
- International travel
$350,000+/year (Top 1%)
- Property in desirable areas
- Generational wealth building
- Complete financial freedom
- Early retirement achievable
The State Reality
Your income percentile varies by state:
| State | Top 10% Threshold | Median |
|---|---|---|
| Western Australia | $145,000 | $65,000 |
| ACT | $140,000 | $68,000 |
| New South Wales | $135,000 | $58,000 |
| Victoria | $125,000 | $55,000 |
| Queensland | $120,000 | $52,000 |
| South Australia | $110,000 | $50,000 |
Mining money: WA's resource sector skews incomes significantly higher.
The Tax Reality
Australia's progressive tax means:
| Salary | Take-Home | Effective Tax Rate |
|---|---|---|
| $65,000 | $53,800 | 17.2% |
| $90,000 | $71,200 | 20.9% |
| $130,000 | $97,500 | 25.0% |
| $180,000 | $128,200 | 28.8% |
The $180K threshold: Above this, you're paying 45 cents on every extra dollar earned.
Super: The Hidden Wealth Builder
At $130,000, your employer contributes $15,600/year to super (12%). Over 30 years at 7% returns, that's $1.5 million in retirement savings—without you contributing extra.
Calculate Your Actual Take-Home
Your gross salary is one thing. Medicare levy, HELP debt, tax brackets—it adds up differently than you'd think.
<div style="margin: 1.5rem 0; padding: 1.5rem; background: linear-gradient(to right, #f0f9ff, #eff6ff); border: 2px solid #bfdbfe; border-radius: 0.75rem;"> <a href="/au/calculators/au-salary" style="text-decoration: none; color: inherit; display: block;"> <div style="display: flex; align-items: flex-start; gap: 1rem;"> <span style="font-size: 2.5rem;">💼</span> <div style="flex: 1;"> <h4 style="margin: 0 0 0.5rem 0; font-size: 1.125rem; font-weight: 600; color: #1f2937;"> Australia Salary Calculator → </h4> <p style="margin: 0; font-size: 0.875rem; color: #4b5563;"> Calculate net income after Australian taxes, Medicare levy, HELP debt, and superannuation </p> </div> </div> </a> </div>Global Perspective
If you earn $65,000 AUD, you're:
- Top 50% in Australia
- Top 10% in the developed world
- Top 1% globally
Doesn't mean you can't want more. But perspective helps.
Share this - Reckon your mates know where they actually rank? Let's find out.