“Australia pays better” – but how much better? And do tax rates really make a difference?
This guide breaks down UK vs Australia take-home pay at different levels.
Take-Home Pay Comparison
£70,000 / AUD 120,000 Salary
| Location | Gross | Tax + Levy | Take-Home | % Kept |
|---|---|---|---|---|
| UK | £70,000 | £18,432 | £51,568 | 74% |
| Australia | AUD 120,000 | AUD 31,867 | AUD 88,133 | 73% |
| Australia (£) | £70,000 | £18,590 | £51,410 | 73% |
| Difference | – | – | -£158 | -1% |
Surprising: Very similar take-home at this level.
Note: Australia includes 11% Super (AUD 13,200) not shown in take-home. Total package AUD 133,200.
£90,000 / AUD 155,000 Salary
| Location | Gross | Tax + Levy | Take-Home | % Kept |
|---|---|---|---|---|
| UK | £90,000 | £26,432 | £63,568 | 71% |
| Australia | AUD 155,000 | AUD 45,367 | AUD 109,633 | 71% |
| Australia (£) | £90,000 | £26,300 | £63,700 | 71% |
| Difference | – | – | +£132 | 0% |
Again similar. But Australia adds 11% Super (AUD 17,050 = £9,900).
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Don’t Forget Superannuation
Critical difference: Australian employers contribute 11% Super ON TOP of salary.
Example – AUD 120,000:
- Cash salary: AUD 120,000
- Employer Super: AUD 13,200
- Total package: AUD 133,200
When comparing offers, factor Super:
- UK £70,000 + 5% pension = £73,500 total
- Aust AUD 120,000 + 11% Super = AUD 133,200 (£77,700) total
Australia total package 6% higher once Super included.
Cost of Living Comparison
Rent
| London Zone 2 (1-bed) | Sydney CBD (1-bed) |
|---|---|
| £1,800-2,500/month | AUD 3,500-5,000/month (£2,040-2,920) |
Similar to slightly higher in Sydney.
Groceries
| UK | Australia |
|---|---|
| £250-350/month | AUD 500-700/month (£290-410) |
Slightly higher in Australia.
Transport
UK (London):
- Tube pass: £150/month
Australia (Sydney):
- Public transport: AUD 200/month (£117)
- Car costs: High (parking, fuel, rego)
Public transport cheaper but many need car in Australian cities.
Dining Out
| London | Sydney/Melbourne |
|---|---|
| £15-30/meal | AUD 25-50/meal (£15-29) |
Similar costs.
Net Position: Take-Home vs Living Costs
Single Professional (£70k / AUD 120k)
UK (London):
- Take-home: £51,568/year (£4,297/month)
- Living costs: ~£2,500/month
- Savings: ~£1,800/month (£21,600/year)
Australia (Sydney):
- Take-home: £51,410/year (£4,284/month)
- Living costs: ~£2,600/month
- Savings: ~£1,700/month (£20,400/year)
Result: Very similar savings capacity.
But: Australia builds AUD 13,200 Super annually (compounding to 60).
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Hidden Factors
Super Long-Term Value
Australia’s 11% compulsory Super builds wealth:
- 30 years of AUD 13,200/year contributions
- Growing tax-free after 60
- Significant retirement nest egg
UK’s lower pension contributions mean:
- Less forced retirement savings
- More take-home now, less retirement later
Lifestyle Differences
Australia advantages:
- Weather and outdoor lifestyle
- Better work-life balance (generally)
- Space (bigger homes)
UK advantages:
- Proximity to Europe
- Cultural/entertainment options
- Career opportunities in certain fields
Tax Rate Comparison
Why take-home is so similar:
UK and Australian tax rates are surprisingly close:
UK: 0% → 20% → 40% → 45%
Australia: 0% → 19% → 32.5% → 37% → 45% + 2% Medicare
At middle incomes (£60-90k): Rates almost identical.
Australia slightly higher at low income (no personal allowance equivalent to UK’s £12,570).
UK slightly higher at very high income (45% kicks in earlier).
When Australia Pays Better
Higher salaries (£100k+):
- Super contribution becomes more valuable
- Total package difference increases
Lower cost locations:
- Sydney expensive, but Brisbane/Adelaide cheaper
- Better value than London
Career fields:
- Mining, construction, healthcare often pay premium
- Finance, tech roughly similar
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Common Questions
Is Australia salary always similar to UK?
At middle incomes (£60-90k), yes. Higher incomes see bigger differences due to Super value.
Do Australian salaries include Super?
Usually quoted as base salary + Super separately. Always clarify.
How do bonuses compare?
Both taxed at marginal rate. Similar treatment.
What about pensions?
Australia has compulsory 11% Super. UK has auto-enrollment (typically 3-8%). Australia forces more retirement saving.
Can lower Australian salary beat higher UK salary?
Rarely, unlike Dubai/Singapore. Tax rates too similar.
Disclaimer
This guide provides general information only and does not constitute financial advice. Actual take-home and costs vary significantly based on individual circumstances. Tax treatment depends on proper UK exit and Australian tax residency. Always consult qualified financial advisor.