The average income in Australia rises sharply from early career through to peak earning years in the mid-40s to mid-50s, then gradually declines as part-time work and early retirement become more common. The median taxable income across all age groups is $55,868 (ATO 2022-23), but this hides dramatic variation — a 25-year-old and a 50-year-old in full-time work have vastly different earnings profiles.
Quick fact: Australians aged 45–54 earn approximately 2.6 times the median income of those aged 20–24, reflecting career progression, seniority premiums, and the compound effect of skills development over 25+ years of working life.
Average Income by Age Group — Australia 2026
| Age Group | Median Taxable Income | Mean Taxable Income | Full-Time Average |
|---|---|---|---|
| 18–24 | ~$25,000 | ~$28,000 | ~$52,000 |
| 25–29 | ~$55,000 | ~$60,000 | ~$72,000 |
| 30–34 | ~$68,000 | ~$76,000 | ~$82,000 |
| 35–39 | ~$72,000 | ~$84,000 | ~$90,000 |
| 40–44 | ~$77,000 | ~$93,000 | ~$98,000 |
| 45–49 | ~$77,000 | ~$96,000 | ~$103,000 |
| 50–54 | ~$72,000 | ~$91,000 | ~$100,000 |
| 55–59 | ~$62,000 | ~$83,000 | ~$93,000 |
| 60–64 | ~$48,000 | ~$70,000 | ~$85,000 |
| 65+ | ~$28,000 | ~$55,000 | ~$72,000 |
Based on ATO Taxation Statistics 2022-23 and ABS Average Weekly Earnings data. Median includes part-time workers and those with partial-year income. Full-time average covers full-time employees only.
The median figures are pulled down by the large share of part-time workers, particularly in younger and older age groups. The full-time average is a better benchmark for career planning; the median is more representative of what an age group actually earns in aggregate.
Income Growth Across a Working Life
The typical Australian career trajectory follows a predictable arc:
Early career (18–24): Gaining a foothold
Most workers in this age group are in entry-level roles, completing apprenticeships, studying part-time, or in casual work. The $25,000 median reflects significant part-time and casual employment. Full-time workers in their early 20s — particularly trades workers or those who skipped university — often earn considerably more than the age group median.
Rising fast (25–34): Compounding experience
Income rises most steeply in the late 20s and early 30s as qualifications convert into experience and workers move into senior or specialist roles. The jump from $25,000 median at 18–24 to $55,000 at 25–29 is the most dramatic income increase across any 5-year span.
Example: A 29-year-old software engineer with 5 years of experience earning $105,000 sits at approximately the 80th income percentile for their age group — well above the $60,000 median but not unusual for their industry.
Peak earning years (40–54): Career plateau
Income growth slows as workers approach peak seniority. The median for 45–49 ($77,000) is similar to 40–44 ($77,000) — suggesting income plateaus for many workers in middle management or specialist roles. High earners (executives, senior professionals) continue growing well beyond the median at this stage.
Transition to retirement (55–65): Part-time shift
Median incomes fall from 55 onward as a significant proportion of workers move to part-time, semi-retirement, or leave the workforce entirely. Full-time wages remain relatively high for those still working, but the age group median drops sharply because it includes many part-timers.
The Gender Pay Gap by Age
Australia’s gender pay gap — on average 21.8% on total remuneration — is not uniform across age groups. It follows a distinctive pattern:
| Age Group | Male Median Income | Female Median Income | Gap |
|---|---|---|---|
| 20–24 | ~$26,000 | ~$25,000 | ~4% |
| 25–34 | ~$72,000 | ~$62,000 | ~14% |
| 35–44 | ~$86,000 | ~$62,000 | ~28% |
| 45–54 | ~$90,000 | ~$62,000 | ~31% |
| 55–64 | ~$76,000 | ~$52,000 | ~32% |
The gap is minimal in the early 20s, then widens sharply from age 30–34 as career interruptions for caring responsibilities disproportionately affect women’s income trajectories. The WGEA’s 2025 data shows the gap is largest in the construction, mining, and financial services industries.
Income by Industry — Quick Reference
Some industries pay substantially above the national average at every age:
| Industry | Average Full-Time Salary (All Ages) |
|---|---|
| Mining | ~$148,000 |
| Finance & Insurance | ~$112,000 |
| Professional Services | ~$103,000 |
| Construction | ~$90,000 |
| Healthcare | ~$84,000 |
| Education | ~$80,000 |
| Retail & Hospitality | ~$56,000 |
Source: ABS Average Weekly Earnings 2025.
For workers in mining, finance, or professional services, the age-group medians significantly understate their earnings. For retail and hospitality workers, the reverse is true — many earn below the national median even in peak earning years.
What Your Income Means for Your Wealth
Income is the engine; wealth is the destination. Higher income only builds net worth if the savings rate is sufficient to convert earnings into assets. Some benchmarks:
- A 35-year-old earning $85,000 with a 15% savings rate saves $12,750/year — enough to build $200,000+ in financial assets over a decade.
- The same income with a 5% savings rate ($4,250/year) produces roughly $60,000 over the same period.
Use the Australia income percentile calculator to find your exact ranking, and the net worth percentile calculator to see how your accumulated wealth compares.
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