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

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

Archive