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

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

Archive