The cost of work: What we pay to work

Monday, August 17, 2015

The unemployment rate is rising, but so are the costs of work. And while living costs and house prices have been rising faster than wages, the costs associated with work are also on the way up. From toll roads to public transport costs, a simple cup of coffee to updating work clothes. From childcare costs to tax increases, Australians are paying to work.

A recent 2015 McCrindle Research study of over 540 working Australians reveals that income doesn’t just generate wealth, it also consumes it. Australians are forking out more than ever on transport costs, clothing and food while they are working, significantly reducing their take-home pay. Incurring travel costs associated with work, work-related education expenses, child-care costs, and income tax all further reduce a full-time worker’s take-home pay to less than two thirds of their gross salary.

THE LIFESTYLE COSTS OF WORK

95% of working Australians spend their own money on food and beverages during work times, with almost 3 in 4 Australians (74%) purchasing lunch, morning tea, or coffees when at work or when travelling to/from work at least once per week. More than one fifth of Australians (22%) spend their own money on consumable food items every single day while they are at work.

YOUNGER MALES BUY LUNCH MOST

Males tend to eat out more often, with 27% of male employees purchasing food or beverages at least once per day (compared with 16% of females). The frequency at which employees purchase consumables while at work decreases with age. While 78% of Generation Ys and 77% Generation Xs spend their own money on food and beverages at least once per week, this reduces to 60% for the Baby Boomer Generation.

ALMOST $900 ON LUNCHES PER YEAR

The average Australian employee spends $18.52 on lunches, snacks, and beverages during their workday every week. This takes into consideration the 6% of Australians who don’t spend money on food while they are at work, and ranges to include those who go out more than once a day, some of whom spend over $100 on food and beverages while at work each week. Over a 48-week work year, this average weekly spend accumulates to $889 per year.

THE COST OF FASHION

In an effort to keep up with the latest styles and fashions or simply to avoid wearing the same thing every day, employees spend hundreds of dollars on clothing per year. Australians report spending an average of $320 each year of their own money on clothes they require directly for work. This includes employees across all industries and factors into account those who spend very little, having uniforms supplied, as well as those who purchase corporate apparel.

GETTING TO WORK: THE RISING COST OF CARS

After childcare and tax costs, transport is the greatest expense when it comes to work, with the average Australian spending $99.88 each week on work-related petrol costs, tolls, and/or public transport tickets. While public transport cost increases have been modest, the big challenge for workers has been the rising cost of petrol, tolls and car ownership, and this is particularly relevant for the 2 in 3 Australians (65.5%) who travel to work by private vehicle. The average full time worker spends almost $4,800 per year just on getting to and from work.

UPSKILLING, RETRAINING AND KNOWLEDGE-GAINING

30% of working Australians spent their own money last year on education and training directly associated with their line of work, averaging to $1,936. Overall (accounting for the 70% who didn’t spend any of their own money on employment-related learning), the average Australian worker spends $588.60 per annum of their own money on training, and much of this, where it is retraining for a new career or role, is not tax deductable.

THE CHILDCARE COST CHALLENGE

The Productivity Commission Study into childcare shows the median childcare costs are $7.40 per hour ($74 for a 10 hour day). For those requiring full time childcare for 50 hours per week, this would cost them $370 per week which equates to 22% of the average full time weekly earnings.

A TAXING PROBLEM

The current average full time weekly earnings is $1539.40 per week ($80,049 per annum) which brings this average wage into the third tax bracket (a tax rate of 37 cents per dollar). Based on the 2015-2016 tax schedule this average annual earnings package would attract a tax bill of $16,768.

FOR MANY, IT IS MORE THAN HALF

The average full-time Australian worker who earns $80,049 per annum (current full time adult weekly earnings) is spending $889 of that on lunches, $320 on wardrobe changes, $4,794 on transport costs, $587 on education, $17,760 on child-care (based on 70 hours at average costs) and $16,768 on tax (not including tax deductions). These total work costs add up to $41,118, which is 51% of the average annual gross.

FOR MORE INFORMATION:

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

learner research report criminal visual Wodonga curiosity alpha new office trends logan interactive New Zeland research data crows nest home owner Caregiver royal influence chairty baby boomers baby names overcast social analysis customer norwest communications christianity greatness average Australian workplace culture middle class research February 16 McCrindle Speakers list rental stress global generations spend sydneysiders Geoff Brailey hopes aged care child care survey design supply and demand bus environment work mates ipswich Northern Territory public speaker public holiday media slideshare moreton bay aged care puzzle authenticity Sydney keynote speaker DESTEL trend tuesday video Real Estate shbc trends of 2017 NEETs in depth interviews 2014 volunteering data perth Aussies grave decision education research group demography mining boom the hills charities Aussie capital cities FPA office Engineering Manager presentations coffee easy rider trend spirituality winter travel the australian dream youth unemployment average sydneysider gen alpha names futurist baby name predictions mobile January 26th eliane networking unemployment huffington post priorities NFP event year 12 geomapping conference wealth repayments mythbusting energy Assistant Store Manager states social trends socialites engagement domestic Research Executive training career Australian Communities Trends young australians keynote speaker australia average aussie work-life cold culturally diverse staff 2017 future of shopping school students society trends organisational culture Northern Beaches going out resource nfp investing IT Specialists earnings change house prices Kiwi educhat rich holiday purpose Kirsten Brewer personal growth vegetarian financial dreams cancelling event infographics sunny days WA national wealth professional presenters infographic NSW mother's day growth investor aussie culture sentiments megatrends Channel Seven economic dare to dream students follow home HSC award winner property market clothing winter blues Adelaide sydney speaker darwin menai stay home local communities cost of living safe snapshot participants wage non profit weekly earnings housing market the hills shire speakers pack media activity Generation X relational 2016 census daily telegraph medicine friendship apartment eliane miles financial fears water System's Architect Australian communities affordable volunteer tattoos ashley fell Hills Shire Council typical australian google cost leadership story choice workers poor outsourcing house proactive population map christian future experience divorce rate future-proof millennials click teaching Queensland dream Tuesday Trend thrive sun focus group professional services Social Trend royal educated NBRS Architecture visualisation report deloitte Res Vis CBD sector Netflix economy trends of 2016 graphs ACF daily commute infographic wall skills Melbourne salary speakers mentor goals Australian Bureau of Statistics faux-ciliser parents healthy future mateship social shifts australians staying home more church demographics New South Wales Duchess of Cambridge ferry trends analyst earn teleworking cloudy days litter narcissism internship cars 24 million social impact intern environmental scanning social change mccrindle in the media unaffordable quote wedding 2013 easter panel student the changing face of financial independence christmas equip care support challenge money national crime rates generation alpha year 7 focus groups weather Christmas presents financial planning marriages conference presentation mortgage australian community trends report study population growth housing trends grandparents learn marriage tertiary education village sydney event language learning styles owning a home Myth Valentine’s Day future of work Territory trades keynote culture renting Population Clock presentation lalor park social research sydneysider Gen X VET sector Real Estate Institute of Victoria shifts workshop market research investment emerging technologies 2015 researcher contiki households neutral bay census 2016 event not for profit local community builders suburban living the average aussie research services cartodb Financial Planning Association results tuesday rise of local The ABC of XYZ population mccrindle growing population breakfast financial small business housing growth ageing Education Future Forum baby name urban taskforce Australia Day in the media social staying in wages social lives 23 million education future report celebration sydney hills university degree schools Australian Home identity forum families Work place education sector community event high density data ABS 1980 REIV Conference land of the middle class census data stats rising house prices debate Canberra millionth forecast university earning "know the times" business performance faux-cilising society suburb gender statistics facts not-for-profit religion millenials commuters faith potts point post rationalism hobart cultural diversity TEDx product increasing densification Christmas lunch school real bondi tea paying to work know the times teachers micro holidays Skilling entrepreneurs of today dreams finance public speaking woolworths Andrew Duffin program screenage teacher social enquiry research visualisation waverton Bathburst Generation Y goal twentyseventeen new york times TED summer fears events DIY sector wide communicate financial future house price brand urban hornsby Charlotte micro apartments JOMO brands business index australian communities trends report monarchy data analyst workplace hills shire poker master ACF 2016 anzac internships volunteers toys research pack employers Do It Yourself Australian Population Northern beaches Event state living pyrmont education entrepreneurial global financial crisis friends men English bureau wealth inequality belief sydney metro rent showreel couple Royals technology transport low density online shopping acf15 cultural diveristy ACF2017 marrickville wealth and income distribution Australian schools world Tuesday Trends sunburnt country income baby name trends Financial Planning Association of Australia buildings thought leadership princess charlotte Australian demographics area 10 years tips mythbusters census results Australia street wellbeing teach manly generation global national private wealth world youth day REIV National Conference professional speaker food government rule keeper divorce live the dream apartments Macquarie University Financial Planning Week commute home ownership sports 2012 award city Sydney Hills Business Chamber wolloomooloo Scouts office space brisbane New Zealand 2020 Deaths analysis jobs of the future long weekend selfie sydneycity conferences community google for education Research Director mccrindle research consumerism house price rise Channel 7 ease of travel data visualisation moderators guide residents engage family community engagement employment professional development collaborative train plans group session define seasons speaker Australian Trends gen z VIC urban living Australian Families Word Up impact TED talk Australian Census capital city townhouses case study EFF children collaboration the great screenage household fresh dreaming sector wide study publication budget Vocational education World Water Day conference speaker shopper's pick Gen Y future proofing emerging trends NT happiness australian communities forum hello fresh 2016 census results insight Western Australia Australian community trends Crime Rates australian real estate SMART James Ward PSI annual income housing forecasting australian baby boom social researchers shopping meetings lifestyle #censusfail online charity future of education innovative future proof demographic generational trends optus my business awards SMSF ACF17 ultimo kate middleton prince george ideas Merry Christmas personalities media commentary sustainable Christchurch demographic transformations wealth and income news The Daily Edition balance insights royal family communities travelling brand experience gig optus gig economy cash affordability responsive Births shopping centre newspaper social life relevant social commentator generations population milestone recap ashley mckenzie ethnography NBRS leadership workshop storytelling youth consumer Tasmania 1968 workforce property price cica crime resilience suburbs 1994 baby names report high density apartments royal baby ACT Australia Day 2017 social commentary TDE tv vegemite census entertainment 2016 SA business media release Love ageing population urban living index social media Mark McCrindle blaxland TAS office opening young people omnibus South Australia VET education future schools students casual Australian Dream demographic trends cancelling plans entrepreneur census fail Wellington 40 million Wagga Wagga mover and shaker high density living 1975 cancel plans jobs dessert high school baby names australia report tableau learning renter of the future socialising father's day meals internet volunteering communication Christmas season Sydney women victoria Queensland: QLD school satisfaction parenting mccrindle tea cooking hills social issues leader gold coast property pharmacies faux-cilise wealth distribution SRE Australians survey car baby generation Z housing affordability offenders debt careers digital motivate social researcher professional changing face of sydney qualitative research politics etiquette innovation Northern Beaches Christian School pharmacy emerging generations demographer local FOMO organisations life optimistic australian social research rain GPO Hornsby Shire Council marketing work retirement CPI 24,000,000

Archive