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Canberra’s fat cats getting fatter

By johnboy - 21 May 2010 26

The Canberra Times brings word that new Bureau of Statistics data shows the average Canberra wage has shot further forward to more than $75,000 a year.

This is particularly impressive for a Territory generally lacking in the super-wealthy that drags the average up in most of the States.

At the heart of it increases in public service pay are far outstripping the private sector.

What’s Your opinion?


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26 Responses to
Canberra’s fat cats getting fatter
Clown Killer 6:46 pm 21 May 10

Compared to almost all the rest of the world’s population, $75,000 per year is a LOT. Why do we keep trying to justify pay in terms of house cost?

Because we don’t live in dirt floored huts and catch or grow our dinner. We live in a particularly pricy part of a first world economy and, frankly, that luxury comes at a cost.
An annual salary of $75,000 works out at roughly $57,000 a year after tax (not allowing for deductions and other financial management wizardry). That’s around $4750 a month give or take. Assuming you were able to save enough of a deposit and you have bought a modest house for $500,000 you’re paying around $3200 a month in repayments (with interest at something like 6.5%) – that leaves you $1550 a month for food, insurance, transport, electricity, rates, water, phone and all of life’s other expenses.
It’s not a lot.

georgesgenitals 4:48 pm 21 May 10

JC said :

$75,000 in this day and age is sweet stuff all, especially when the average house is now over $500,000 and average mortgage re-payments these days is in the vicinity of $2500p/m.

Maybe the reason the ACT is so high is because many of us don’t have access to schemes to reduce our tax as much as other states.

Compared to almost all the rest of the world’s population, $75,000 per year is a LOT. Why do we keep trying to justify pay in terms of house cost?

JC 4:24 pm 21 May 10

$75,000 in this day and age is sweet stuff all, especially when the average house is now over $500,000 and average mortgage re-payments these days is in the vicinity of $2500p/m.

Maybe the reason the ACT is so high is because many of us don’t have access to schemes to reduce our tax as much as other states.

Woody Mann-Caruso 3:27 pm 21 May 10

From the APSC:

At June 1995, the APS 1–2 classification group accounted for 23.3% of ongoing staff. By June 2009, the APS 1–2 level had fallen to just 3.8% of all ongoing employees. Representation of Executive Level employees has risen from 15.5% to 26.1% over the same period. The proportional increase in the size of the SES during 2008–09 (5.4%) was considerably larger than the growth in the APS overall (1.6%).

georgesgenitals 3:00 pm 21 May 10

Marvin_78 said :

I am 32, I have a degree and I don’t work for the government. I am earning well below $75,000… I must start looking for a job that will pay me an “average” wage.

It seems you have a choice to make then.

arescarti42 2:49 pm 21 May 10

Marvin_78 said :

I don’t work for the government.

Well there’s your problem.

JessP 2:30 pm 21 May 10

4% increase a year baby…..4%!

steveu 12:56 pm 21 May 10

removing lower level jobs (which has simply resulted in ‘classification creep’) has pushed wages up bigtime I would suggest. What a secretary gets paid nowadays to answer a telephone and maintain an electronic diary is incredible. And let be honest, some of them do more than that, but they are the minorty. Just my humble opinion.

screaming banshee 12:06 pm 21 May 10

Makes me wonder how many ‘levels’ of employees there are in the pubic service.

A little while back a bank, ANZ I think, looked at their workforce and identified in some areas of the business there were 15 supervisory/management/responsibility levels between the biggest boss and the lowest sh!tkicker. They swept through the business and left area of the business with more than 5 levels from CEO to pleb.

It would be interesting to see just how many levels there are on that basis and how many little empires could be brought down with similar rationalisation.

Anyone care to venture a guess.

MOCS 11:56 am 21 May 10

Is there a point being made here or are we just perpetuating the myth that Canberra is rolling in money at the expense of the rest of the country?

Marvin_78 11:38 am 21 May 10

I am 32, I have a degree and I don’t work for the government. I am earning well below $75,000… I must start looking for a job that will pay me an “average” wage.

Clown Killer 11:28 am 21 May 10

I doubt that there’d be anyone in my organisation that would earn less than that.

georgesgenitals 11:00 am 21 May 10

Make that “major international players”…

georgesgenitals 10:59 am 21 May 10

With government, it’s probably more to do with public servants changing role and level, and having increasing number of people at higher levels.

Don’t forget that there are a reasonable number of people who work for private organisations that pay fairly well. Canberra has large offices of a number of major internal players, many of whom pay people with 5-10 years experience 6 figure salaries, plus bonuses. Trends of having service delivery from these organisations staffed from Canberra rather than elsewhere puts upward pressure on the average number.

krasny 10:29 am 21 May 10

Which parts of the public service are getting these massive pay rises, exactly? Clearly, I’m in the wrong department :/

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