Is $40,000.00 a Good Salary at 40?
Find out how a $40,000.00 salary compares at age 40 in Australia — take home pay, age-group comparison, and whether you're on track financially.
Last verified: 5 May 2026Well below the median.
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Top 92% for salary at 40 🇦🇺
Verdict: Below average for your age
At $40,000.00, you're earning below the average for your age group. This doesn't mean you're doing badly — many people at this income level live comfortably by managing expenses well.
The average salary for the 40-44 age group is $100,000.00 — you earn 60% less than average.
Your Take Home Pay on $40,000.00
Annual
$35,712.00
Monthly
$2,976.00
Fortnightly
$1,373.54
Weekly
$686.77
How $40,000.00 Compares at Age 40
| Age Group | Average Salary | Your Salary | Difference |
|---|---|---|---|
| 18-24 | $55,000.00 | $40,000.00 | -27% |
| 25-29 | $72,000.00 | $40,000.00 | -44% |
| 30-34 | $85,000.00 | $40,000.00 | -53% |
| 35-39 | $95,000.00 | $40,000.00 | -58% |
| 40-44 (you) | $100,000.00 | $40,000.00 | -60% |
| 45-49 | $105,000.00 | $40,000.00 | -62% |
| 50-54 | $102,000.00 | $40,000.00 | -61% |
| 55-59 | $95,000.00 | $40,000.00 | -58% |
| 60-64 | $85,000.00 | $40,000.00 | -53% |
Where You Should Be Financially at 40
Expected Savings
$80,000.00 – $200,000.00
Outside of superannuation
Expected Super Balance
$150,000.00
Based on average contributions
Expected Net Worth
$300,000.00 – $700,000.00
Including super & property equity
Are You On Track? Milestones for Age 40
- 1Net worth of $300,000-$700,000
- 2Super balance around $130,000-$200,000
- 3On track to be mortgage-free before retirement
- 4Children's education funded or planned
- 5Clear plan for retirement savings target
What to Focus On at 40
Frequently Asked Questions
Is $40,000.00 a good salary at 40?
$40,000.00 is below the average salary for 40 year olds in Australia. The average for the 40-44 age group is $100,000.00. However, salary is only one part of financial health — your savings, spending habits, and investments matter too.
What is the average salary for a 40 year old in Australia?
The average salary for the 40-44 age group in Australia is approximately $100,000.00 per year before tax. This is based on ABS data and includes full-time workers across all industries and states.
How much should a 40 year old have saved?
At 40, most Australians have between $80,000.00 and $200,000.00 in savings (outside of super). Your super balance should be around $150,000.00. Your total net worth (including super and any property equity) should be in the range of $300,000.00 to $700,000.00.
Am I earning enough for my age?
The "right" salary depends on your career stage, industry, location, and qualifications. The average for 40 year olds is $100,000.00. If you're below this, focus on upskilling, negotiating, or switching roles. If you're above it, focus on saving and investing the difference to build long-term wealth.
Sourced from
7 primary sources- TR-2025-1Public RulingTR 2025/1 — Income tax: deductions for work-related expenses
What employees can deduct as work-related expenses, the substantiation rules, and the new fixed-rate method for working from home.
- ATO-Tax-Rates-2026ATO GuidanceResident tax rates 2025-26 (Stage 3 in effect)
0–$18,200 nil; $18,201–$45,000 16c; $45,001–$135,000 30c; $135,001–$190,000 37c; $190,001+ 45c. Plus 2% Medicare levy.
- ATO-HECS-Repayment-2026ATO GuidanceCompulsory HELP/HECS repayment thresholds 2025-26
Repayment starts at $54,435 (1%), scaling to 10% at $159,664+. Repayment income includes taxable income plus salary-sacrificed super and reportable fringe benefits.
- ATO-Foreign-Resident-RatesATO GuidanceForeign resident tax rates 2025-26
No tax-free threshold. 30c on first $135,000; 37c $135,001–$190,000; 45c above. No Medicare levy. HELP/HECS repayments still apply if registered.
- ATO-Salary-Sacrifice-EffectiveATO GuidanceEffective salary sacrifice arrangements
Salary sacrifice must be a prospective agreement, in writing, on amounts not yet earned. Can't backdate. Reduces taxable income; sacrificed amounts are taxed at 15% in super (or 30% if Division 293 applies).
- ATO-PSIATO GuidancePersonal Services Income (PSI) rules
If more than 50% of contract income is for your skill/labour, PSI rules may attribute income to you personally and limit deductions. Affects contractor and sole-trader take-home calcs.
- ATO-Working-Holiday-MakerATO GuidanceWorking holiday maker tax rates
Subclass 417/462 visa holders: 15c on first $45,000, then resident rates apply. No tax-free threshold. Employer must register as a working-holiday-maker employer.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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