Approximately 58% of the Australian population is considered to be part of the middle class. What is the average annual income range for the Australian middle class? The average annual income range for the Australian middle class is between AUD 46,000 and AUD 140,000.
The median salary in Australia in 2023 is 6,650 AUD (USD 4,420) per month. The median salary refers to the middle value of all the salaries considered. In other words, around half of the population in Australia earns less than 6,650 AUD per month, while the other half earns more.
The top 10 per cent of earners in Australia make $122,664 or more, with some of the best paid incomes in the country including miners who rake in $124,550 on average, school principals who take home $130,142 and dentists that are earning $131,773.
Middle-income class refers to households with income between 75% and 200% of the median national income. Upper-income class refers to households with income above 200% of the median national income.
Pew draws on the same formula used in the SmartAsset report, defining the middle class as those with incomes between two-thirds and twice the national median income. That works out to a national salary range of roughly $52,000 to $156,000 in 2020 dollars for a three-person household.
Into which class do I fall? Income data released by the U.S. Census Bureau shows that the 2021 median household income was the highest on record at just around $65,000. 10 Pew defines the middle class as those earning from two-thirds to double the median household income.
There is no official financial standard for what constitutes middle class. For most it's more about a standard of living—including owning a home, being able to afford to pay for a college education for your kids, and having enough disposable income to take a family vacation.
> Five classes can be identified in Australian society. > They are: 'established affluent', 'emergent affluent', 'mobile middle', 'established middle, and 'established working'.
The amount of money it takes to make it into the top 1 per cent of the wealthiest Australians has doubled to $8.25 million since 2021, according to a new report.
According to the Australian Bureau of Statistics, the median salary in Australia in August 2022 was $65,000. So out of over 14 million people employed in Australia, this is what we'd call a “typical” salary.
$100,000/year is above an average salary and if you're frugal enough, on $100,000/year, you should be able to live a good life and save some money too. Usually if you consider living in desirable locations of cities like Melbourne and Sydney, most of your income will be consumed in the house rents.
So if you're on $100k or more, congratulations, you're in the top 20% of Aussie income earners. If not, don't worry, you're in the good company of 80% of Aussies.
So a taxpayer with an income of $80,000 a year is therefore in the top 20 per cent of Australians.
Officially, the average wage is $75,000 a year, but that is skewed by a small number of very high income earners. In reality, around 70 per cent of tax payers actually earn less than the average wage. If pensioners are included in this count, four out of five Australians earn less than the average.
Finally, the established working class is the lowest of all social classes in Australia. There isn't all that much difference between this class and the established middle class. Traits of those belonging to the working class include: Lowest income levels. Limited cultural experience.
Australia's minimum wage for an adult is currently $21.38 per hour (before tax), or $812.60 for a 38-hour week.
The ATO classifies those who control a net wealth of $5 million or more as 'wealthy individuals'2. Those with a net wealth of $30 million or more are classified as 'high-wealth individuals'. The wealthiest person in Australia is currently Gina Rinehart, with a net worth of around US$14.8 billion.
Australia is safe, prosperous and free
Backed by our strong economy, Australians enjoy a high standard of living. We ranked 3rd in the OECD for growth in household disposable incomes in 2021 despite the pandemic, and we are the wealthiest nation on earth in terms of median wealth per adult.
Investors with less than $1 million but more than $100,000 liquid assets are considered sub-HNWIs. Very-high-net-worth individuals have investable assets of at least $5 million, while ultra-high-net-worth individuals have at least $30 million.
Australian household incomes are the seventh-highest in the OECD – a club of mostly wealthy countries – while mean household net worth is third-highest, behind only the United States and Luxembourg. The average household in the OECD has a yearly disposable income of $US30,490, compared to $US37,433 in Australia.
What qualifies as working or middle class varies from region to region, but country-wide, a salary of $30,000–$90,000 qualifies a single individual as middle class, with incomes below that range falling into the working class. Homer Simpson is working class.
The term upper class is a socioeconomic term used to describe those who reside on the highest levels of the social ladder above the middle and working or lower classes. They generally have the highest status in society and hold a great deal of wealth.
The middle class is a socio-economic strata that falls in between the working class and the upper class. Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants, but also rely on borrowing for big-ticket items like homes and cars.
Pew defines “middle class” as those earning between two-thirds and twice the median American household income, which in 2021 was $70,784, according to the United States Census Bureau. That means American households earning as little as $47,189 and up to $141,568 are technically in the middle class.