Aussies Face a Salary Crisis: The Reality of Earning Over $100,000 in 2026
Are you feeling broke in 2026, despite earning a substantial salary? You're not alone, according to Rhianna Farnan, Chief Communications Officer at Derwent Finance and State President of the Finance Brokers Association of Australia (FBAA).
In a recent video, Farnan revealed the sobering truth behind the Australian salary crisis. She pointed out that the perception of earning $100,000 has drastically changed over the decades. In 1990, a $100,000 salary would be equivalent to around $248,000 today, while a $100,000 salary in 2026 is only worth approximately $40,000 in 1990 terms.
Farnan's video resonated with many, amassing over a million views and sparking hundreds of comments. One commenter shared their experience: 'We have two professional salaries and I just put $20 worth of fuel in so I could still buy bread. Never in my life been so broke, can’t imagine how families are getting by.'
Another commenter wrote, 'Thought it was just us. on $210k combined year and I don’t know where to cut to save up a deposit to buy a house. We don’t buy coffee and take outs or have any subscriptions.'
Even those with a combined household income of $320,000 a year struggle to feel rich, as one commenter claimed. They stated, '(We) don’t stress about bills or meeting expenses but we’re not flying high rolling in it.'
Farnan addressed the common misconception that buying a house is 'not that hard.' She explained that while older generations earned 'peanuts' and could still afford a home, the current financial landscape is harsher. The cost of purchasing a property and the purchase price of properties have increased significantly compared to the 1990s, even with lower interest rates.
The average annual income in Australia now exceeds $100,000, a significant increase from the 1990s. However, the median house price nationally is approaching $1 million, up from $184,000 in 1990, which, adjusted for inflation, is equivalent to around $457,000 today.
Farnan emphasized that the feeling of being 'broke' is a daily occurrence in the mortgage broking industry. She noted that even those earning $210,000 a year can struggle with the rising costs of living, including daycare, groceries, and other expenses.
The 27-year-old highlighted the struggles of those who bought properties during the Covid-19 pandemic when interest rates were at a record low of 0.1%. Now, with interest rates at 3.85%, these homeowners are facing challenges.
Farnan believes the cost of living crisis is still impacting Australians, leading to sacrifices like skipping morning coffee. She predicts that the financial pressure will depend on interest rates, and if they remain stable or only increase slightly, many people should be able to manage.
However, if interest rates continue to rise, the situation could worsen, affecting those who have recently started saving with more manageable mortgage payments.
For those struggling with the cost of living, Farnan advises reassessing finances and cutting back on non-essential expenses. She suggests looking at budgets and finding ways to reduce costs, such as nail appointments or weekend drinking.
