Julianne

We are looking for a bit of advice regarding Australian salaries. I have done a fair bit of trawling through this forum over the past months or so and it seems to be a rule that to get a similar salary/lifestyle in Australia, you multiply your UK salary by 3….? How accurate is this formula?

My partner and I are currently based in London and earn healthy London salaries. My occupation and earning potential transfers pretty easily with the above conversion, however this is not the case with my partner.
My OH works in banking and is employed on a contracting basis (he earns a daily rate). If he were to be employed on a permanent basis, he would be earning a salary of approximately £70 - £80K – research tells us however that this field in Australia pays a maximum of $120,000, which is significantly less than the x3 conversion.

I’m obviously more than aware that $120,000 plus what I will be earning (between $60-$70K) will be MORE than enough for a couple in their late 20s to start up on, but is there really THAT much difference between the UK & Australian salary conversions?

Thoughts and input appreciated

BadgeIsBack

It's really hard to say because current anecdotal BE estimates is 2-2.2......as evidenced by recent threads...

3 was an old, popular magic number - because hey presto -it was, moreorless, (often less) the FX rate for quite some time.

Maybe 3x has some relevance now, more than ever, as people find the cost of living is very expensive and it will help you focus on negotiating a higher salary.

Reaver

I think life is what ya make it Julianne.

My uncle and aunt have lived out there all their lives, they have no rent or mortgage, but aside from that they live on $35,000 a year.

My wife and I are hoping to move out there in years to come, with £50k - £60 to start us off. With the two of us working I expect an annual household income of around $150k - $180k per year, and even with 4 kids I expect that to be more than sufficient.

Your not going to have a similar standard or lifestyle over there as you have here, otherwise you wouldnt be moving. Life is different over there. Europe isnt a stones throw away, so you will probably have less foreign holidays than you do now, but thats not to say you wont have holidays. Sounds like Im trying to teach you to suck eggs, but I guess what Im saying is dont try to compare over here with over there. Just save your money and go, and enjoy it for what it is and what it has to offer.

Just my opinion.

.

Amazulu

it isn't

bingobob777

Bankers are overpaid in the UK

$120k even seems excessive for someone who creams off of other peoples productivity.

Roles within mining and engineering can earn significantly more than 3 x the UK salary, some roles alot less. Ask yourself what Australia needs right now, people to work in the commodities boom propping the country up or bankers to lose more of peoples super?

dave99

I to am confused by the salary comparisons. Although I am thinking of going the other way, aus to the uk.

I look at UK jobs and see the salary is half what I am earning in aus and I am struggling with the idea of coming down so far.

I dont think the living costs here in aus are that much higher than the uk so I am very confused how the wages can be so much less

Bermudashorts

My OH and I were both in finance sector in London. I know what our market rates there were and I have a good idea of the market rates here now and it does not convert at 3 x £ for us. I got about 2.5x and Mr BS about 2x originally although now he is also about 2.5x as well.

fish.01

Someone worked out the difference in average salaries to be 2.2. If you are doing a straight cost of living conversion this is the most accurate figure to use. Of course once you actually start earning an actual salary in Australia you can then work out exactly what percentage of your wage a litre of milk costs in each country, rather than using average salaries.

Rambi

It depends a bit on where you're coming from and going to.

3x is probably accurate if you're moving from Sticksville, UK to Sydney. London to Melbourne you're probably looking more like 2x and London to Sydney would be something like 2.2x

fish.01

Yes, if you can get the average salary of your home town and new town you will be able to divide the 2 amounts to get a more accurate ratio.

brendarover

$2.5 to £1 is as accurate as you will get........

isgraham

120k in Sydney is crap I moved back to a salary of around £75k after earning around $150k and was much better off for it.

Turban Explorer

I got significantly less in commodities broking going from London (150k Gbp) to (200k AUD) which was still acceptable but I could feel the difference - the rent alone on my flat near the office was $55k per year. I also had to work nights as the markets during the day were so illiquid in my area and that meant stuffy hot office as the aircon went off, working alone, wasting time doing recaps as the back office was in bed etc. Career wise it was a very bad move but it is a nicer place if you want a quieter more relaxed life to London. I ended up leaving as they moved my desk to Singapore effectively canceling my 457. For career progression and better employment practices London wins in my opinion. For lifestyle (at least for a while) Sydney was lovely.

With regard to the original 'is 3x accurate' then I think yes. Definitely 2.5 + if you don't want to encounter a drop in standard of living.

GeneJeanie

How would 120k in Perth compare to same in Sydney??

Bermudashorts

Going from 70k in London to 120k in Sydney is not great financially, but people can have other reasons for moving and they might just decide it is worth taking the hit. I do think that 200k for a young couple in Sydney would provide a decent living, even if it is behind their London standard of living.