What is the average US salary and how does it compare to Australian pay?
Understand the average US salary in context with Australian earnings, including gross pay, superannuation, and tax differences. Use the Salary Index for comparison.
The average US salary is a common benchmark, but precise figures vary. In Australia, the national benchmark is $2,083.70 per week (index 100).
What does 'average US salary' mean in Australia?
When Australians search for "average US salary", they are usually trying to compare earnings across countries. The term itself is not an official Australian statistic, but it points to a common question: how does pay in the United States stack up against what we earn here? To answer that, we need to look at the Australian benchmark and then consider the differences in gross pay, superannuation, and tax.
The Australian benchmark: the Salary Index
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings each year. As of May 2026, full-time adult ordinary-time earnings are $2,083.70 per week, or $108,352 annualised. That figure is the baseline for the Salary Index, where index 100 equals that amount. If your annual gross salary is $108,352, your index is 100. Anything above or below that line shows how you compare to the national average.
For example, the national minimum wage from 1 July 2026 is $26.44 per hour, which works out to $1,004.90 per week, or $52,255 annualised – that gives an index of 48.2. A professional in the professional, scientific and technical services sector has an index of 114.7, meaning they earn about 14.7% above the national line.
Where does the US average fit?
No official Australian source provides a direct "average US salary" in our search results. The ABS and Fair Work Commission do not track US data. However, international comparisons are possible using organisations like the US Bureau of Labor Statistics. A common cited figure for median weekly earnings in the US was around $1,200 USD per week in 2025, which at current exchange rates is roughly $1,800 AUD. That is below the Australian full-time adult ordinary-time earnings of $2,083.70 AUD. So on the Salary Index, that US figure would be around 86 if converted directly, but this ignores many factors.
Gross pay, super, and tax: the real picture
When comparing a US salary to an Australian one, you cannot just look at the gross number. Australian employers must pay superannuation at 12% from 1 July 2026, on top of your salary. That means a $100,000 AUD salary actually costs the employer $112,000, and you get $12,000 contributed to your super fund. In the US, retirement contributions are often optional and not universal.
Tax also differs. For 2026–27, Australian resident tax rates are: nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that, plus a 2% Medicare levy. US federal tax brackets are different, and state taxes vary. For example, a single person earning $100,000 AUD in Australia would pay about $24,667 in tax plus Medicare, leaving around $75,333 take-home. A similar earner in the US might pay a different amount depending on state.
Using the Salary Index for international comparisons
The how the index works page explains that the index is based on gross ordinary-time earnings, not total compensation. To compare a US salary, you would:
- Convert the US salary to AUD at the current exchange rate.
- Divide by the Australian benchmark ($108,352 annualised).
- Multiply by 100.
For example, a US salary of $70,000 USD (about $105,000 AUD) gives an index of 97. But this does not account for super, tax, or purchasing power. A better approach is to look at after-tax income and include super contributions.
State and industry differences
Within Australia, pay varies by state and industry. The states page shows that the ACT has the highest index at 109.9, while Tasmania is lowest at 88.6. Mining has the highest industry index at 154.7, and accommodation and food services the lowest at 72.5. These differences are far larger than the gap between the US average and the Australian line.
The bottom line
The "average US salary" is a useful reference point, but it is not a precise figure in Australian data. If you are comparing job offers or thinking about moving, look at total compensation including super and benefits, and use the Salary Index to see where each sits relative to the Australian national line. For more on how pay is set, see pay guides for award rates and topics on tax and super.
Questions people ask
How does the average US salary compare to the Australian average?
Direct comparison is tricky because official Australian sources like the ABS do not publish US salary data. As a rough guide, the US Bureau of Labor Statistics reported median weekly earnings of about $1,200 USD in 2025, which at current exchange rates is around $1,800 AUD. That is below the Australian full-time adult ordinary-time earnings of $2,083.70 AUD per week. However, US salaries often exclude benefits like health insurance, while Australian salaries include superannuation (12% on top).
Does the Australian Salary Index help compare US and Australian pay?
The Salary Index is designed for Australian pay relative to the national line (index 100 = $2,083.70 per week). To compare a US salary, you would convert it to AUD and divide by the Australian benchmark, then multiply by 100. For example, a US salary of $70,000 USD per year (about $105,000 AUD) would give an index of around 97. But this ignores purchasing power and tax differences.
How do superannuation and tax affect the comparison between US and Australian salaries?
In Australia, the super guarantee adds 12% to your gross salary (paid by the employer), which is not part of take-home pay but is a compulsory retirement contribution. US employers may offer 401(k) matching, but it's not universal. Australian income tax rates for 2026–27 range from nil to 45% plus a 2% Medicare levy, while US federal tax rates are different and vary by state. For a fair comparison, you should look at total compensation including super and benefits, and after-tax income.