Australia immigration salary
Life in Australia: What is the salary in Australia?
Salary structure in Australia; Taxes and the Pension Fund in Australia; Medical tax & # 187; etc.
Many, including us, were asked this question in preparation for moving to Australia. We recently wrote about the cost of living on the Green Continent, and, naturally, the question arises, “What is the salary in Australia to pay all these expenses?” Is this real? & # 187;
The question is rhetorical & # 8212; naturally real. Otherwise, people from all corners of the world to the Land of Kangaroo would not have been pestering for a couple of centuries.
Fences & # 187; Australia puts high and climb over it can only “stubborn” and “smart”, and such people in any country get what they deserve and the mind.
We have not yet met guys who would not be able to settle here in Australia. Such, for certain, is, but they are either very few, or they are thoroughly hidden.
So, as we have already said more than once to all of our readers & # 8212; prepare a sleigh from the summer, ie. study the demand in the Australian labor market in advance even before moving, look at what is more demand and where more pay, “close” gaps in their knowledge and resume, if possible & # 8212; get additional qualifications and work experience.
Below, in our note, we publish a report prepared by, which reflects the current situation in the IT market in Australia. The professions and the average level of salaries in Australia are detailed. The statistics on which this report was prepared are also given.
Of course, the information in this report is not a standard, and deviations always exist and will depend on the size of the company and the abilities of the employees themselves, because IT people often do not work in trade unions, and contractors generally bargain for the rank as in the market.
Therefore, the comment is relevant. Trust, but check & # 187 ;.
You can check here: an Australian job search site & # 8212;
Even after working for more than three years in Australia, I learned a lot of new and interesting things from this report, making a series of conclusions for myself.
There are obvious shortcomings, a-la? In what country would you move to work? and the amount of interest is about 300% or more.
What is it like? But maybe I did not understand something?
From my personal experience & # 8212; In the report, however, almost everything is correct.
Having the ability to manage a large number of people (thank God not directly), I appended the contracts and essays of various IT people to projects, and the numbers in the report coincide with those I saw in the quotas.
How does the structure of the salary in Australia from a series of questions:
How is wages calculated in Australia?
How often is it paid?
How many taxes are paid in Australia with a salary? Etc.
I’ll tell you about my specific case.
I received a preliminary employment contract from an Australian company while still in Russia. Ask about what to what in the contract very few people had, so he understood himself, as it turned out not far from the truth.
In addition to all the conditions of execution, duties and formalities in the employment contract, such things as: the amount of wages before taxes per year; amount & # 171; super & # 187; (see below); periodicity of payments; bonuses, etc.
Here is a small example for understanding the calculation of wages here in Australia.
For simplicity of exposition, let’s take the sum of 100,000 AUD (Australian dollar). This is the so-called Base Salary.
So, in the employment contract the amount of exactly $ 100,000 per year will be indicated & # 8212; this is the Base Salary.
Next comes the description: Package = Base Salary + Superannuation + & # 171; cheesecake buns & # 187; (they are already individual).
Each company in Australia is obliged to make deductions to the pension fund from each payment of wages, bonuses, etc. employee.
These deductions are called Superannuation (abbreviated as Super).
This is a percentage that, like the refinancing rate, is constantly indexed depending on the state of the economy, currency, etc.
To date, the recommended minimum bid is $ 187; is 9%. The company has the right to pay more (but not less) of this rate.
Holden pays 10%. Those. every year 10% of the amount before taxes ($ 100,000) on top of the salary is paid to the pension fund.
In this example, 10,000 dollars a year. And these money are not paid once a year, but paid at the time of receipt of each salary.
And if the fund is literate and the funds are invested correctly, at the end of the year there may not be 10,000 in the account, but for example 11,000.
And in the event of a crisis, this amount can go up, for example, to 4000, if there are some stocks in the portfolio.
But we will not go into the jungle of the distribution of funds in the pension fund, this topic is large and worthy of a separate note.
I will only mention that you can manage what your money is invested in. And there is no need to go anywhere.
Go to the website of your pension fund and shred online, distribute the portfolio. Want in the stock, want in bonds, deposits, precious metals, real estate, etc.
And you can determine the amount, interest, etc. Anything you want. You can also distribute funds between different funds, or you can do so-called SMSF (Self Managed Super Fund).
This is when you completely manage finances yourself, without the participation of any fund on whose account your money lies. This scheme is becoming quite popular in Australia.
Investments in real estate here and so engaged in all who are not too lazy, but how to be allowed to buy real estate investment in super, so here in general & # 171; the meat became & # 187 ;. If the topic is interesting & # 8212; let me know, write separately.
About the super in more detail you can read in the same Wikipedia:
Further in the employment contract is a description of bonus payments (usually it is paid once a year).
In our example, let it be 10% of Base Salary, provided that the company receives the planned annual profit.
Next, cellular communications (for example, $ 100 per month), car leasing, etc. about other individual & # 171; buns-cheesecakes & # 187; to an employment contract.
As a result, in our example we get the following sum:
Package = 100,000 (Base Salary) + 10,000 (Superannuation) + 10,000 (Bonus) + 1,200 (mobile) + 10,000 (car lease) = 131,200 AUD.
Of this amount, Base Salary and Bonus are taxed.
To understand how much you deduct taxes from your wages, go to the Australian Tax Service website (the rates are adjusted a little each year).
The tax year, by the way, starts in Australia on July 1, not January.
As you can see, taxes in Australia are by no means small. At incomes above 180 thousand dollars a year you pay the state more than 40%.
In general, we are looking for a category in which our salary falls:
$ 80,001 & # 8212; $ 180,000 | $ 17,547 plus 37c for each $ 1 over $ 80,000.
those. the tax on $ 100,000 will be $ 17,547 + ($ 100,000- $ 80,000) * 0.37 = $ 17,547 + $ 7,400 = $ 24,927.
Accordingly, you will receive $ 100,000 & # 8212; $ 24,927 = $ 75,053. This is without taking into account the bonus, which can be paid at the end of the year, and maybe not.
In Australia, companies usually pay wages every two weeks (26 transactions per year). $ 75,053 / 26 = $ 2,887.
When you transfer SP to the account, the tax is considered for each transaction.
And for example, when you transfer a bonus with a regular salary, you get this kind of “# 187”:
$ 2,887 + $ 10,000 = $ 12,887. Clever & # 187; The financial machine takes and makes a feint with the ears & # 8212; multiplies this amount by 26 and receives an amount of $ 335,062 and considers that this is the annual salary of an employee, while applying a crazy interest rate for a tax of 45% (instead of 25%).
At the same time, the salary and bonus are severely cut. I did not know about this feature and raised a noble bush in the first year of work. Then they explained to me that at the end of the fiscal year, when the tax balance is being paid, the tax service will return this money to me. So it happens every year.
In July, when the last financial year ended, either you or yourself, or with the help of specially trained people, you beat the debit with the loan.
I use the services of Vince (vindimas (at) & # 8212; great guy. For three years he fully justified my trust. Always very smart, competently pulls out everything that can be legally drawn from taxes. His services are worth $ 165. And this amount is included in the tax deduction in the next year.
Again, tax deductions & # 8212; this topic is also a separate note.
There you can stuff a lot of things: office supplies that you bought in person, but for workers or educational needs; electricity, internet, phone at home & # 8212; calculate the percentage that you used for work needs and also cram into the account # 187; the state; use of personal transport for work needs; payment for training (if necessary for work, that is, courses for a hairdresser will not get bungled, of course, if you do not work as a hairdresser), donations and payment for participation in charitable events, etc. etc.
In general, once having passed through this case (registration of its annual report for the recalculation of taxes) & # 8212; you become a specialist in calculating what can be written off and what can not be done. So often buying something for the house, you figure out whether it can be written off at the end of the year, and if so, then mentally subtract and sum a third of the price :), which will return as a refund for taxes.
From personal experience. Every year, about 4,000 (+ \ – 1000) dollars are returned to us. Money is transferred to a bank account approximately 2-3 weeks after the filing of documents. In our case, during July, a balance is broken and by the end of August the money lands on the account.
Another important nuance. There is such a thing as Medicare Levy (the tax on public medicine) & # 8212; 1.5% of Base Salary. It is paid once a year when taxes are taxed.
In our example, this is 1.5% of $ 100,000 = $ 1,500. If you can not write off taxes at the end of the year and your accounting department has very roughly assessed taxes, you did not have any bonuses, etc., then the situation may arise that you will receive an additional $ 1,500 for Medicare Levy, which you must will pay.
Those who work under the contract (contractors, who do not have a permanent employment contract with the company) & # 8212; there in general they have a dark forest in terms of tax deductions. There may be overpayments (ie, there will be a refund at the end of the fiscal year) and underpayments (or vice versa, the contractor himself will also pay extra to the tax service “underpaid”).
How do they strike the balance & # 8212; God only knows.
Who is interested, all the questions to our Sydney family twin-parent: will look at salaries in the report, keep in mind the math, which is described above, i.e. deduct 10% on super and taxes.
If you have something to add from YOUR personal experience & # 8212; please feel free & # 8212; write in the comments.
For those who plan to move to Australia it will be interesting and informative to learn the experience of those who have already arrived and work here in the Kangaroo Country.
The more examples of life & # 8212; the better and more useful!
Well, in the completion of the addition: Salaries in Australia as well as in Russia among themselves do not discuss among themselves and do not advertise. I only have a couple of examples.
For example, one of the students is very well established, working a year in our company, and we arranged it in HP.
Base Salary for this position was $ 50,000 per year, and the duties included the simplest tasks from the field of system administration and helpdesk.
Although even this place was quite a big contest, but the boy had undeniable advantages and already an annual work experience.
Another example: a young employee of our company, also a former student, after working for two years with us, was already dissatisfied with a salary of 70 thousand a year.
You can also draw a conclusion about the level of salaries in Australia and what the Australians themselves are striving for.
I suggest responding to a small survey, so that those who are transiting to Australia should understand more clearly what salary can be expected upon arrival.
Without delaying more, below the report, which was discussed at the very beginning of this our note.
Link to the report on the site of the creators of this report:
It would be fun to see a similar report made in Russia.
It would be interesting to know people’s opinion not only from IT sphere regarding their experience in employment in their professional areas here in Australia, what kind of salary there is (exact figures do not necessarily lead, purely average for those who are only going to Australia to move). Write in the comments.
Your restless Thema and Nata.
Dudes, taxes on bonuses are also considered. Although this may be a question of how formal they are, but my business objective is taxed completely. Although we’ll see if we can get it back, July will be soon. ”
Exactly, you’re right. Bonus, of course, is taxed. I even wrote how hard I cut the bonus every year, and that only at the end of the year it turns out to return a little.
Fixed, now everything is clear.
I want to share a useful link.
I have a question in the article about PMP you indicated that you studied in military mechanics, and education in IT? you finished the chair? At what year? Also has not found as with you to communicate, to write not through comments !?
Yes, I studied at the Faculty of And, the Department of Automated Systems for Information Processing and Management, finished in 2004.
You can contact us by e-mail:
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It would not be bad to learn about other industries, such as construction.
Dmitry, good afternoon! & # 8212; an Australian website for job search, there you can find all the industries, offers and services.
3500 $ is how much in Australian?
Dmitry, in the note all the prices & # 8212; in Australian dollars.
And so the current rate (USD = AUD) can be banned on the Internet.
Artem, what is the situation in Holden in IT in connection with the future closure of production? I follow the vacancies on the site and on the sit, but I have not seen anything in Melbourne.
And, if possible, one more, more specific question & # 8212; Does IT Holden use its Python services? I’m very interested in this, because I’m doing it. Thank you.
The situation in Holden is complicated in all departments now and IT is no exception. Because in the coming years there are big reductions, then all efforts of the company are aimed at preserving as many specialists and managers as possible. I’m afraid the Sike will not hold Holden in any of the sections for a long time.
About the python. GM is a US centric company, in connection with which all developments, all development, all technologies are all in the US, in innovation centers. In Australia, only business analytics, project management and operational support / service desks.
Back in Australia in some areas (health sector, charities, government) there is a so-called salary package. This is a system by which taxes can be written off, for example, rent or mortgage payments (there is a rather large list, I simply take out the rent all by myself, so I did not understand further) for a fixed amount of $ 16K with kopecks per year for charity, in other areas, the other. Those. $ 16K is added to the non-taxable portion of the salary. The employee enters into an agreement with an intermediary organization (the employer calls it), which this Salary Package serves, shows that he spends 16K per annum on rent, for example, and the salary comes from two places. from the employer and from the intermediary (already with recalculation). How and why they shared this with each other, I did not penetrate. Naturally, the mediator takes something about $ 200 dollars a year for his services. Also in addition to these $ 16K, $ 5K per year can be charged for going to restaurants, but, unfortunately, you can not collect checks there for a year and then write off. We must immediately state how much you will spend every two weeks, spend and report. And still you can unlimitedly write off the holiday accommodation, cruises and holiday packages (all this only for family members, with friends and relatives, the number does not pass).
I heard the version that this is due to the fact that salaries in these sectors are lower. I think that this is not true for all positions. IT specialists, analysts, and, I think, many more simply can not offer a lower-than-market salary, because then good specialists will not go to them. So it is quite possible for representatives of demanded specialties to work in the above areas.
We live in Australia, we travel a lot – both on the Australian continent and around the world.
The blog “Australia and not only” is our photo-sketches about all interesting things happening with us on our everyday lives and numerous trips.