In April 1975, the federal minimum wage in Australia was $ 2.15 $ 2 . 1 5 per hour, equating to approximately $ 81.88 $ 8 1 . 8 8 per 38-hour week. Average full-time earnings for the period were around $ 7 , 600 $ 7 , 6 0 0 per year.
Earning more, costing more
Australians are also earning a lot more now than we were back then; the average full time earnings in 1975 was $7,600 per year, today the annual average earnings exceed $72,000 per annum. And while we are earning more, costs are a lot more today than they were back then.
A loaf of bread cost 24 cents, a house cost $28,000 and Variety Australia was born.
The median money income of households in the United States rose to $11,800 in 1975, an increase of about 5 percent over the revised 1974 median of $11,200. However, this increase was eroded by rising prices which resulted in a net loss in real purchasing power.
Average incomes increased from $12,400 in 1966, and to $36,890 in 1978. Doctors were now at the top of the heap, receiving three to four times the average salary.
Statistically speaking, and you can look at the Reserve Bank of Australia statistics to validate, in 1975 interest rates were 9.8 per cent (Labor was in government). When a Liberal government was elected they went from 10.27 per cent in 1976 and continued to rise until they peaked at 21.39 per cent in 1982.
You probably think petrol is now dirt cheap at $1.20 a litre after world oil prices tanked recently. Well, in 1975, petrol was 57 cents a litre.
In 1974 the average cost of a litre of milk in Sydney was 30c compared to $1.03 in 1994.
In 1970 Australia, median house prices varied by city, with Sydney around $18,700, Melbourne approximately $12,800 (or slightly higher, ~$16k by some reports), Perth at $17,500, and Canberra around $18,000 (in 1971), showing significantly lower figures than today, often representing less than 5 times average annual income, notes.
Yes, $36 an hour (around $75k annually) is a solid wage in Australia, generally considered good as it's above the minimum wage and near or slightly above the median earnings for many full-time roles, providing a comfortable living, though it's below the average for higher-paid professionals, depending on location and lifestyle needs.
The median money income of households in the United States rose to $11,100 in 1974, an increase of about 6 percent over the 1973 median of $10,500. However, this increase was eroded by rising prices which resulted in a net loss in real purchasing power.
In 1970 Australia, petrol was very cheap, around 9 cents per litre, though prices fluctuated, with reports of 32.4 cents per gallon (about 7 cents per litre) in early 1970 and potentially around 15 cents per litre later in the decade, showing significant increases as the decade progressed.
Across Australia's capital cities in 1976, median house prices looked like this: Sydney – $36,800. Canberra – $35,100. Melbourne – $32,900.
The Wage–Price Spiral
Combined with strong union power and a centralised wage-fixing system, this led to a wage–price spiral — average earnings jumped 29 per cent in 1975 while inflation eroded the gains. Industrial disputes were intense, with more than 6 million working days lost in 1974.
From a surplus of 1.5 per cent of GDP in mid-1973, the balance of Australia's transactions with the world crashed to a deficit of 3.2 per cent by the end of the 1974. It was the year when profits collapsed; industrial disputes escalated; and a housing boom gave way to the steepest bust on record.
When the Reserve Bank of Australia (RBA) raised the cash rate to a crippling 17% in 1989, it made homeownership for many Baby Boomers a financial nightmare. However the fact is that interest rates were only this high for a few years. It took only three years for sky-high interest rates to go down.
Back in 1979 petrol was 22.58 c/ltr Diesel 19.89 c/ltr the federal excise was 5.16c.
6302.0 - Average Weekly Earnings, Sep 1970.
Bread has seen the largest increase in relative price since 1973, with a basic loaf of white bread bought in a supermarket costing $4.40 in 2023 compared to $0.20 in 1973 (or $2.30 in today's money) for a similar sized loaf delivered to home.
A schooner of beer by memory was about 50c in the 70s. I used to get a pot (10) ounces for 15 cents when the currency changed over. Plus even though wages were lower you could easily shout your mate's a round of beers easily. No way you could afford it today.
Yes, Indigenous Australians can access specialized home loan programs, like those from Indigenous Business Australia (IBA), that often feature lower introductory interest rates, lower deposit requirements, and flexible terms to overcome barriers to mainstream lending, making homeownership more accessible, though claims of zero-interest loans are false. These subsidized rates and tailored conditions, like reduced Lender's Mortgage Insurance (LMI), are designed to support First Nations people, but eligibility and specific rates depend on income and circumstances.
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Looking at the past four decades, the average rate on a 30-year fixed mortgage peaked in 1981, rising just above 16%. The average 30-year fixed rate bottomed in 2021 at just under 3%. So far in 2025, the average 30-year mortgage rate has fluctuated between 6.26% and 7.19%.