Australians are earning more and building wealth, but there’s still a massive gap between reality and what people believe is necessary to feel “rich.” Recent research shows the dream salary for many Aussies is far higher than the average income, highlighting the country’s growing income expectations.
Average Wealth and Income in Australia
Australia’s prosperity has been steadily increasing over the last two decades:
- Household wealth:
- 2004: $530,000
- 2014: $858,000
- 2024: $1.584 million
- Median disposable household income:
- 2002–03: $45,552/year ($876/week in today’s dollars)
- 2022–23: $61,984/year ($1,192/week)
Disposable income reflects earnings after tax and Medicare contributions, giving a clearer picture of what households can actually spend.
The ‘Rich’ Benchmark: $398,000 a Year
According to Finder’s 2025 research:
- Australians believe they need $398,118 annually to feel rich.
- This is over six times the average household income, creating a $336,134 income gap.
- Since 2022, the “rich threshold” has increased by 16%, up from $336,516.
Finder personal finance expert Sarah Megginson notes:
“While social media may make us feel inadequate, the reality is that the average Australian earns just over $60,000 – far below the $400,000 some aspire to.”
Income Expectations by Age and Gender
- By generation:
- Gen Y: $470,881
- Gen X: $416,067
- Gen Z: $351,793
- Baby Boomers: $273,648
- By gender:
- Men: $393,439
- Women: $384,424
Clearly, younger generations and men tend to set higher benchmarks for what it means to be rich.
Savings Snapshot: Reality vs. Expectation
- Average monthly savings (July 2025): $984
- Average cash savings: $47,624
- 43% of Aussies have less than $1,000 in savings
Megginson emphasizes:
“Focus on realistic financial goals and money management skills. Budgeting tools can help track spending, build savings, and avoid overextending yourself.”
Quick Tips to Build Wealth
- Track your spending – Use apps or free budgeting tools.
- Set realistic savings goals – Start small and increase over time.
- Invest wisely – Consider superannuation, shares, or property.
- Avoid unnecessary subscriptions – Could save hundreds annually.
- Focus on fulfillment, not just income – True wealth goes beyond money.
FAQs
Q1: What is the average Australian household income?
A: Around $61,984 per year (2022–23).
Q2: How much do Aussies think they need to be rich?
A: Approximately $398,118 annually.
Q3: Which generation feels the need to earn the most?
A: Gen Y, with an average “rich” target of $470,881.
Q4: How much are Australians saving on average?
A: About $984 per month, with total cash savings averaging $47,624.
Q5: What’s the best way to feel financially secure?
A: Set realistic goals, track spending, and focus on both savings and personal fulfillment.
Conclusion
The gap between what Australians earn and what they think it takes to be “rich” is staggering. While the average income is far below the aspirational $398,000 mark, focusing on realistic budgeting, savings, and long-term planning can help close the gap between perception and reality. True wealth isn’t just about hitting a high salary—it’s about feeling secure, fulfilled, and in control of your finances.