Calculating Your Comfortable Family Income in Australia

How much do you need?

I do get asked some quite strange questions at times, but they are usually one-offs. But this one pops up quite regularly and every time it does, there is never enough information given to me to answer it.

moneyEven with lots of information, it would still be an impossible question to answer, but when the question is something like

I’m moving to Australia next month with my wife and two teenage children, what would be a good salary to ensure a comfortable lifestyle for me and my family?

What chance do I have?

Calculating YOUR comfortable family income

Here’s what I think you need to take into consideration when calculating a comfortable family income for you and your family. You might be able to think of many more.

  • Cost of mortgage or rent.
  • Cost of running a car or cars.
  • Cost of food for your family.
  • Cost of utilities; electricity, gas, water and rates.
  • Cost of additional shopping items; clothes, gadgets, health and beauty, jewellery, computers and toys.
  • Cost of insurances, for the home and for private medical insurance.
  • Cost of telephones, both home and mobile.
  • Cost of entertainment items, like holidays, alcohol, digital TV, going out.
  • Cost of unexpected maintenance bills, for your home, for your car and other things that break.

So to answer these sort of questions, you’d have to offer me a lot of information or I’d have to ask you a lot of further questions.

As you can see, it really is an impossible question for me to answer, but you can answer it for yourself.

Check out my page about The Costs of Stuff.

A simple solution.

If you are coming here from the UK though, this works quite well. However much you spend per month over there in pounds, you’ll probably need twice the amount here in Australian dollars. So if you need £4,000 a month in the UK, budget $8,000 a month here.

Sounds stupid doesn’t it? But I bet it wont be far out.

How can I make sure I earn twice as much in AUD as I currently earn in GBP?

Salaries in Australia are higher than those in the UK, by my estimates over 30% higher; click on the third link below under the title “More useful links:” to my post comparing UK and Australian salaries to see how I got to that.

Once your salary is adjusted to Australian dollars and taking into account the high salaries, you will see from the salary comparison charts on that page that it is quite easy to earn double what you earn in pounds in the UK here in Australian dollars.

Check it out for yourself, and I’ve even updated that post with a 2012 version, you’ll see a link to it from the original post.

More useful links:

My report about The Cost of Living “Comfortably” in Australia

My entire category on the Cost of Living in Australia.

My posts about jobs and salaries:

Open a bank account in Australia
{ 606 comments… add one }
  • BobinOz December 13, 2017, 10:35 pm | Link

    I would think you would be able to afford a very decent lifestyle on that money in Shepparton. I don’t know the place well, but I have driven through it…

    https://www.bobinoz.com/blog/282/time-to-head-back-to-brisbane/

    And yes, house rental costs are usually much lower in rural towns, but you can check it on my page Cost of Buying or Renting a House in Australia.

    I think you will be fine on that money.

  • John December 13, 2017, 8:28 am | Link

    Hi Bob. I got an offer of AUD 83500 plus superannuation in rural Victoria (Shepparton). I intend to move alone. Are the living costs (house rentals especially) relatively lower in rural/ small towns? Will I afford to live a decent life (i.e. eat, afford a decent car and save for a holiday etc) off this salary?

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