Aussies divided over how much you need to make every year to be comfortable

By JOANNA HYNDS FOR DAILY MAIL AUSTRALIA Published: 02:41, 19 August 2026 | Updated: 02:53, 19 August 2026 Australians need to earn at least $120,000 a year to live comfortably, according to a finance expert - but not everyone agrees. Mortgage broker and managing director of Finance Emporium, Jess Phillips, said soaring property prices and the rising cost of living have pushed what is considered a 'good' salary well above the national average. Ms Phillips said her $120,000 figure was based on what she sees among her clients and the increasing cost of housing and everyday expenses.  However, she stressed that what constitutes a comfortable income depends heavily on a person's individual circumstances, including whether they are single or have children. The latest Australian Bureau of Statistics figures show full-time adults earn an average of about $108,350 a year, while the median annual salary is around $90,532 - both below Ms Phillips' benchmark for what she considers a comfortable income.  Ms Phillips blamed the increasing gap between wages and house prices as one of the biggest barriers facing first-home buyers today.  She said a single person earning $120,000, with no dependants or other debts, could typically borrow between $600,000 and $620,000 under the Federal Government's Home Guarantee Scheme. 'While a borrowing capacity of around $600,000 may provide access to apartments, townhouses and homes in some regional areas, it falls short of the median house price in many of Australia's capital cities,' the mortgage broker told news.com.au. Mortgage broker Jess Phillips says Australians need to earn  $120,000 a year to live comfortably  'This means that many average-income earners either need to purchase with a partner, compromise on location or property type, save a larger deposit, or wait for a downturn and pull back.' Renters are facing similar pressures, with research from Everybody's Home finding that a single person needs to earn about $130,000 a year to comfortably afford housing without spending more than a third of their income on rent.  What Australians consider a 'good' salary also varies depending on where they live, their age and their gender, according to new research from Finder. People in NSW had the highest expectations, with respondents saying a good salary started at around $150,371, compared with $135,159 in Victoria and $128,669 in Queensland. Millennials also set the bar highest among the generations, saying a good salary was around $144,138. Women also had higher salary expectations than men, with women putting the figure at $142,338, compared with $136,820 for men. Ms Phillips' video and her claim that $120,000 is the 'sweet spot' for a comfortable salary sparked plenty of debate online, with Australians sharing their own experiences of trying to get by on different incomes.  'Single wage household on $130k and I wouldn't say I'm thriving,' one person wrote. Ms Phillips said her $120,000 figure was based on what she sees among her clients and the increasing cost of housing and everyday expenses (pictured are office workers in Sydney)  'You need to be on $200k plus to be considered a "good" salary in my opinion.' Another said: 'Good luck surviving on $120k.' 'Still not enough to buy a house,' another added. Others questioned how the figures compared with the salaries earned by workers in lower-paid industries. 'Meanwhile I'm out here just trying to survive on $50k,' one person said. 'So does this mean that average jobs like receptionist or retail workers are getting $110k?' another asked.