Salaries
There are many good reasons to consider a move to Australia, but money probably isn't one of them. Although salaries have increased in recent years, by an average of 8% in 2005, Australian lawyers still quite seriously lag their counterparts in London. Tax rates in Australia and New Zealand are slightly higher too.
The situation, however, isn't quite as dire as the table below suggests. In Australia, the equivalent of a training contract is just 1 year rather than 2 years. Australian lawyers sit their ‘articles of clerkship’ in their first year and, after then being admitted, are referred to as ‘restricted practitioners’ for 1 year after. This means a UK lawyer would be considered to have an extra year PQE in addition to the bands shown below. Australian salaries also benefit from a compulsory 9% employer pension contribution, the product of which can be transferred back to the UK on leaving Australia if need be. Overseas workers can also benefit from some tax relief under the Living Away From Home Allowance, although this is very dependent on specific circumstances and subject to frequent change.
Salary levels also need to be considered against the relative cost of living in Australia where, upscale parts of Sydney and Melbourne aside, property prices are rather better value than the UK. Anyone working for a top tier firm is going to enjoy a pretty good standard of living.
Average legal salaries, top tier firms, Sydney/Melbourne
| PQE/PAE Level |
$AUD |
£GBP (equivalent) |
| 1 year |
67,000 |
29,145 |
| 2 years |
80,000 |
34,800 |
| 3 years |
94,000 |
40,890 |
| 4 years |
105,000 |
45,675 |
| 5 years |
118,000 |
51,330 |
| 6 years |
130,000 |
56,550 |
Source: Mahlab Recruitment Survey 2005
* Based on exchange rate of $AUD 1 = £GBP 0.435
Tax Rates - Australia
| Income Tax ($AUD) |
|
| 0 to 6,000 |
0% |
| 6,001 to 21,600 |
15% |
| 21,601 to 63,000 |
30% |
| 63,001 to 95,000 |
42% |
| 95,000+ |
47% |
| Medicare (AUD$) |
|
| All Salaries |
1.5% |
|
