United States vs Australia

Compare PPP-adjusted average wages, long-term wage trends and consumer price levels using consistent OECD data.

Country A

Country B

Wage data: 2025 · Price data: 2024

Comparison Overview

United States

Average wage (2025)

$86,977

1-year change: +1.7%
5-year change: +2.1%

Overall price level (2024)

100 (United States = 100)

United States's latest PPP-adjusted average wage is approximately 20.8% higher than Australia's.

Australia

Average wage (2025)

$72,018

1-year change: +1.1%
5-year change: −1.4%

Overall price level (2024)

92.7 (United States = 100)

United States has the higher latest average wage of the two, by 20.8% on a PPP-adjusted basis. Over five years United States shows the stronger change (+2.1% against −1.4%). Overall consumer prices are higher in United States, at 100 against 92.7 on the United States = 100 scale — a gap of +7.3 index points. Both wage figures are for 2025 and the price levels for 2024, so the two economies are read at the same point in each series.

Wage History

See how PPP-adjusted average annual wages have changed in both economies.

PPP-adjusted annual wage (USD)

United StatesAustralia

USD PPP, constant 2025 prices

Wage Key Facts

Metric	United States	Australia
Latest wage	$86,977	$72,018
Latest year	2025	2025
1-year change	+1.7%	+1.1%
5-year change	+2.1%	−1.4%
10-year change	+13.0%	+2.2%
Historical peak	$86,977	$73,870
Peak year	2025	2021
Change from peak	0.0%	−2.5%

How the Wage Trends Compare

Current Position

United States records the higher figure: $86,977 against $72,018, a gap of 20.8%. The gap is clear enough to rank the two, though it says nothing about how the figure is distributed within either economy.

Both figures are for 2025, so this is a like-for-like comparison of the same year rather than of two different latest points.

Both use the same basis: PPP-adjusted US dollars at constant prices. That conversion strips out the price level differences between the two economies, which is what makes the two figures comparable at all — neither is a local-currency salary, and neither is what an employer in that country would write on a contract.

Recent Momentum

United States had the stronger latest year (+1.7% against +1.1%).

Both moved up in the latest year, which leaves the ordering between them unchanged.

Widening the window to five years, the stronger of the two is United States: +2.1% against −1.4%.

This is where the two separate: Australia's latest year runs against its own five-year direction, while United States's does not. Short-term and medium-term signals agree for one and conflict for the other.

Long-Term Direction

Across ten years both series are up — +13.0% for United States and +2.2% for Australia. Over this horizon the two share a direction, and the difference between them is one of pace.

United States is at its historical peak in the latest year, while Australia sits 2.5% from its high of 2021. One has recovered its previous ground and the other has not.

The gap has been widening rather than closing over the five-year window: the economy that already reported the higher wage is also the one growing faster.

Consumer Price Level Comparison

Compare eight consumer price categories with the United States benchmark of 100.

United States = 100
Missing values are shown as -

All differences are shown in index points. United States = 100.

Category	United States	Australia	Difference (USA − AUS)	AUS vs U.S.
Overall	100	92.7	+7.3	−7.3
Food	100	101	−1.0	+1.0
Clothing	100	69.5	+30.5	−30.5
Housing	100	91.8	+8.2	−8.2
Health	100	86.9	+13.1	−13.1
Transport	100	99.3	+0.7	−0.7
Recreation	100	95.2	+4.8	−4.8
Restaurants & Accommodation	100	115	−15.0	+15.0

Overall
United States100
Australia92.7
Difference+7.3
USA vs U.S.0.0
AUS vs U.S.−7.3
Food
United States100
Australia101
Difference−1.0
USA vs U.S.0.0
AUS vs U.S.+1.0
Clothing
United States100
Australia69.5
Difference+30.5
USA vs U.S.0.0
AUS vs U.S.−30.5
Housing
United States100
Australia91.8
Difference+8.2
USA vs U.S.0.0
AUS vs U.S.−8.2
Health
United States100
Australia86.9
Difference+13.1
USA vs U.S.0.0
AUS vs U.S.−13.1
Transport
United States100
Australia99.3
Difference+0.7
USA vs U.S.0.0
AUS vs U.S.−0.7
Recreation
United States100
Australia95.2
Difference+4.8
USA vs U.S.0.0
AUS vs U.S.−4.8
Restaurants & Accommodation
United States100
Australia115
Difference−15.0
USA vs U.S.0.0
AUS vs U.S.+15.0

United States and Australia in Detail

Current Wage Position

United States reports a PPP-adjusted average annual wage of $86,977 for 2025, and Australia $72,018 for 2025. That puts United States ahead by 20.8%.

Both figures are PPP-adjusted: converted using purchasing power parities rather than market exchange rates, and expressed in constant prices so different years stay comparable.

This matters for reading the gap. A market-rate conversion would move with currency markets and would not reflect what the money buys in each economy. These figures are built to compare purchasing power, not to tell you what a currency transfer would be worth.

Recent Wage Momentum

In the latest reported year United States changed by +1.7% and Australia by +1.1%. A single year is a narrow window, so it is worth reading alongside the five-year figure rather than on its own.

Over five years, United States records the larger change at +2.1%, against −1.4% for Australia. That is the difference in how far each series has travelled over the medium term, in real PPP-adjusted terms.

Short-term and five-year movement point the same way for both economies, so neither is currently being pulled against its own medium-term direction.

Long-Term Wage Direction

Across ten years the changes are +13.0% for United States and +2.2% for Australia. This is the longest horizon the data covers, and it is the one least affected by any single year's movement.

United States reached its highest recorded value of $86,977 in 2025, and the latest figure sits 0.0% from that high.

Australia peaked at $73,870 in 2021, leaving its latest value 2.5% away from that point.

Both long-term series move the same way, so the difference between these two economies is one of degree over ten years rather than of direction.

Consumer Price Profile

Against the United States benchmark of 100, overall consumption sits at 100 in United States and 92.7 in Australia — +7.3 index points apart.

The categories that separate them most are Clothing (+30.5) and Restaurants & Accommodation (−15.0).

Transport is where they are nearest, at 100 and 99.3.

Across the categories with data, United States is the more expensive of the two more often than not.

How to Interpret the Comparison

These are average wages, not median wages, and not take-home pay. An average is pulled by the whole distribution, so it does not describe a typical individual, occupation, city or employer in either economy.

The wage figures are already PPP-adjusted and in constant prices. They are not local-currency salaries and not amounts convertible at a market exchange rate.

The price levels are relative indices against United States = 100. They describe how price levels compare, not what a household actually spends.

Wages and price levels should not be combined into a verdict on which country is better. This page is for understanding how the two wage trends and price structures differ — nothing further follows from it.