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The Cost of Living Multiplier..... What is it?

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  • 28-06-2012 4:40pm
    #1
    bigbadcon
    Registered Users Posts: 507 ✭✭✭


    Hi folks,

    Im interested to hear your opinions on what is a good gauge to work out what would give you the same standard of living in Australia that you have in Ireland..

    I know its a vague question and there are lots of variables but what would be your rough estimate.

    Ive heard they use 2.2 from Pounds to Dollars and im wondering what you think the Euro version should be.

    I currently earn around €55k in Ireland which has to cover myself,the missus and our son (6 months old) and we are heading to Brisbane in Feb 2013.

    Some of the jobs im seeing on www.seek.com.au are in and around the 80-85k mark for what I do (Software development) and im thinking this sounds very low when you consider these rough formulas ( it would mean 1.45 - 1.55 for me based on these figures)

    Thanks for your help


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    #2
    jackbhoy
    Registered Users Posts: 1,280 ✭✭✭jackbhoy


    I cant help with the multipler but I will say if you make €55k in Ireland at present you will really struggle to match your standard of living here with anything under $100k, especially with a wife and kids.

    Have you looked into contracting here? That will obviously mean substantially more pay than perm jobs advertised on seek.

    From my experience, for my sector of IT, the wages are not that much higher here than back home. The lower end, grad and helpdesk stuff, is way better paid but when you get to around the 90-120k mark its hard to kick on unless you do contracting or consulting.


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    #3
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    Hi jackbhoy,

    yeah Im hoping to try and start contracting when we arrive. I have 7 years experience so that should be enough to get a contracting role.

    Im just thinking of the scenario if I cant get a contract and end up getting a full time role.

    In fairness there are some jobs that are around the 90-100 mark but most seem to be around 80 ish.

    I have only been looking in Brisbane as thats where we will be going. I hear the cost of living there would be less than melbourne and sydney.

    Fingers crossed Ill get a contract though...


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    #4
    jackbhoy
    Registered Users Posts: 1,280 ✭✭✭jackbhoy


    7 years experience in an in demand field should see you right. Goodluck with it anyway!


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    #5
    bobbles87
    Registered Users Posts: 55 ✭✭bobbles87


    hey bigbadcon,

    I might be able to help you out here re going rates for your position.

    What specific role would you be looking for within IT?

    I am working in HR for a software company in Perth - we also have offices in Brisbane, so I would be able to give you a clear indicaton of current salary rates for that side.


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    #6
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    Hi bobbles87,

    I would be looking for a c# or vb.Net /SQL Server developer role.

    I have a Computing degree and 7 years experience..

    Thanks


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    #7
    markymark21
    Registered Users Posts: 595 ✭✭✭markymark21


    Forget cost of living Multiplier you'll wanna be hitting 100K if you are the only one making money and trying to support a family in Oz. Its possible to live on less but you'll be penny pinching.

    I found out today that if one parent is in college the government will pretty much pay for you child to be in day care.. I think you only end up paying a few quid instead of a couple of hundred. Worth keeping in mind if your missus is thinking to going back to college or something like that!


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    #8
    sponge_bob
    Registered Users Posts: 665 ✭✭✭sponge_bob


    markymark21 wrote: »
    Forget cost of living Multiplier you'll wanna be hitting 100K if you are the only one making money and trying to support a family in Oz. Its possible to live on less but you'll be penny pinching.

    I found out today that if one parent is in college the government will pretty much pay for you child to be in day care.. I think you only end up paying a few quid instead of a couple of hundred. Worth keeping in mind if your missus is thinking to going back to college or something like that!


    Have you got a link for that? as my missus intends to go back to college when she gets out there?


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    #9
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    bigbadcon wrote: »
    Hi folks,

    Im interested to hear your opinions on what is a good gauge to work out what would give you the same standard of living in Australia that you have in Ireland..

    I know its a vague question and there are lots of variables but what would be your rough estimate.

    Ive heard they use 2.2 from Pounds to Dollars and im wondering what you think the Euro version should be.

    I currently earn around €55k in Ireland which has to cover myself,the missus and our son (6 months old) and we are heading to Brisbane in Feb 2013.

    Some of the jobs im seeing on www.seek.com.au are in and around the 80-85k mark for what I do (Software development) and im thinking this sounds very low when you consider these rough formulas ( it would mean 1.45 - 1.55 for me based on these figures)

    Thanks for your help

    Try 2.147

    http://www.boards.ie/vbulletin/showpost.php?p=78811818&postcount=1947


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    #10
    ellaq
    Registered Users Posts: 311 ✭✭ellaq


    The child care rebate applies for people who are working (I think voluntary work is included too) and people who are studying. It doesn't however cover the costs unless you are in a very low economic position. And I believe that it is visa related.

    http://www.humanservices.gov.au/customer/services/centrelink/child-care-rebate?utm_id=10


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    #11
    markymark21
    Registered Users Posts: 595 ✭✭✭markymark21


    sponge_bob wrote: »
    Have you got a link for that? as my missus intends to go back to college when she gets out there?

    Nah sorry. I'm doing HelpX at the moment. One of the girls I'm living with has gone back to college and has a kid in day care and told me about it.

    Its probably means tested, but she runs her own stud farm so I doubt she is short of a few quid


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    #12
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    Hmm that 2.147 is a bit worrying...


    Your figures
    $73K (Average Ozzie Salary) /€34K (Average Irish Salary)= 2.147

    I was hoping that the figure you supplied of average salaries would be skewed due to mining salaries but it looks like the average salary in Brisbane is around 80000 according to this link.

    I would have thought that IT salaries would have been a lot higher than the average but it looks like they arent.

    In Ireland Im 20k over the average...

    Hmmm, anyone wanna buy a Permanent residency visa :D


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    #13
    dodgylegs
    Registered Users Posts: 86 ✭✭dodgylegs


    Hi Bigbadcon,

    Have you adjusted to allow for income tax?

    I'm in health care and earning 55k in ireland. Jobs in perth that i have looked at are around 80k aud. But 16k of this I can have salary packaged, which means i wont pay tax on it, but i think its only for not for profit organisations. As far as i can figure out, i will be paying less tax, so i should be up money


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    #14
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    dodgylegs wrote: »
    Hi Bigbadcon,

    Have you adjusted to allow for income tax?

    I'm in health care and earning 55k in ireland. Jobs in perth that i have looked at are around 80k. But 16k of this I can have salary packaged, which means i wont pay tax on it, but i think its only for not for profit organisations. As far as i can figure out, i will be paying less tax, so i should be up money
    Is that 80k euro or dollars.bear in mind the cost of living is much higher so its no use converting it to euro and seeing if you are up money because the cost of living could be twice as much..

    Thats why its hard to gauge what salaries look promising...


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    #15
    dodgylegs
    Registered Users Posts: 86 ✭✭dodgylegs


    yes your right,

    Doing a direct comparison my wage difference would be a minimum difference of 13k euro after tax, (Single no dependants). 1k will go on flights home per year. I'll be up 1k euro a month, yes the increased cost of living would take a good chunk of it, but i shouldn't be worse off anyway.


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    #16
    jackbhoy
    Registered Users Posts: 1,280 ✭✭✭jackbhoy


    bigbadcon wrote: »
    dodgylegs wrote: »
    Hi Bigbadcon,

    Have you adjusted to allow for income tax?

    I'm in health care and earning 55k in ireland. Jobs in perth that i have looked at are around 80k. But 16k of this I can have salary packaged, which means i wont pay tax on it, but i think its only for not for profit organisations. As far as i can figure out, i will be paying less tax, so i should be up money
    Is that 80k euro or dollars.bear in mind the cost of living is much higher so its no use converting it to euro and seeing if you are up money because the cost of living could be twice as much..

    Thats why its hard to gauge what salaries look promising...

    These multipliers are very rough values and need to be taken as such. There is definitely a cut off point below which the value is skewed. If you make €30k in Ireland you'll probably easily make $60-75k, so that fits in with your multilpier of 2+ and is what drives a lot of this talk. However, if you earn say €80-100k as an IT contractor back home there is zero chance you will make $170-220k here, in fact the value will be more like 1-1.5 in my experience.

    My multiplier is like 1 here but I worked on daily rate in Ireland, here I'm curently fixed term with super etc, daily rate for my role here would be 1.5 max. I can live very well on that and I pretty much support a partner doing a phd as well.
    I came here for lifestyle, not economic reasons and the cost of living, rent and booze aside, is actually pretty similar to home.

    I'd foget the multiplier and measure your salary based on what market is offering, so check out seek and speak to companies/recruiters as they'll tell what you will actually make and work on that assumption.


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    #17
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    dodgylegs wrote: »
    yes your right,

    Doing a direct comparison my wage difference would be a minimum difference of 13k euro after tax, (Single no dependants). 1k will go on flights home per year. I'll be up 1k euro a month, yes the increased cost of living would take a good chunk of it, but i shouldn't be worse off anyway.
    The problem is that from what I'm hearing you (and I) will need to be earning 118k (55 *2.147) a year to have the same spare cash in australia as we do over here so the $80000 jobs don't look so hot after all.

    For example rent could easily cost $2000 dollars a month where as in ireland my mortgage is €830.


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    #18
    jackbhoy
    Registered Users Posts: 1,280 ✭✭✭jackbhoy


    bigbadcon wrote: »
    dodgylegs wrote: »
    yes your right,

    Doing a direct comparison my wage difference would be a minimum difference of 13k euro after tax, (Single no dependants). 1k will go on flights home per year. I'll be up 1k euro a month, yes the increased cost of living would take a good chunk of it, but i shouldn't be worse off anyway.
    The problem is that from what I'm hearing you (and I) will need to be earning 118k (55 *2.147) a year to have the same spare cash in australia as we do over here so the $80000 jobs don't look so hot after all.

    For example rent could easily cost $2000 dollars a month where as in ireland my mortgage is €830.

    Yeah, with dependents etc. $80k is definitely low for you and I think with your skills/experience $100k is definitely realistic for perm roles, for contracting maybe 20-50% more depending on contract type.

    You also have to think about lifestyle benefits that cost nothing. Jumping into car and heading to beach with family on a beautiful sunny day or getting out and going to national parks etc. are priceless when you look at options back home.


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    #19
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    jackbhoy wrote: »
    bigbadcon wrote: »
    dodgylegs wrote: »
    Hi Bigbadcon,

    Have you adjusted to allow for income tax?

    I'm in health care and earning 55k in ireland. Jobs in perth that i have looked at are around 80k. But 16k of this I can have salary packaged, which means i wont pay tax on it, but i think its only for not for profit organisations. As far as i can figure out, i will be paying less tax, so i should be up money
    Is that 80k euro or dollars.bear in mind the cost of living is much higher so its no use converting it to euro and seeing if you are up money because the cost of living could be twice as much..

    Thats why its hard to gauge what salaries look promising...

    These multipliers are very rough values and need to be taken as such. There is definitely a cut off point below which the value is skewed. If you make €30k in Ireland you'll probably easily make $60-75k, so that fits in with your multilpier of 2+ and is what drives a lot of this talk. However, if you earn say €80-100k as an IT contractor back home there is zero chance you will make $170-220k here, in fact the value will be more like 1-1.5 in my experience.

    My multiplier is like 1 here but I worked on daily rate in Ireland, here I'm curently fixed term with super etc, daily rate for my role here would be 1.5 max. I can live very well on that and I pretty much support a partner doing a phd as well.
    I came here for lifestyle, not economic reasons and the cost of living, rent and booze aside, is actually pretty similar to home.

    I'd foget the multiplier and measure your salary based on what market is offering, so check out seek and speak to companies/recruiters as they'll tell what you will actually make and work on that assumption.
    Thanks jackbhoy,I see what you mean about the figures being skewed the higher your salary gets.maybe I'm just getting scared at the thoughts that in ireland my wage is well above the average and it looks like it won't be in australia.

    I am moving for the lifestyle and for a better childhood for my son but at the same time I would like to start getting rid of this 35 year mortgage so money is still a very important factor :-)


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    #20
    dodgylegs
    Registered Users Posts: 86 ✭✭dodgylegs


    thanks jackbhoy.

    bigbadcon, will you be selling your house


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    #21
    bigbadcon
    Registered Users Posts: 507 ✭✭✭bigbadcon


    Not initially, we are going to rent it out for a year or two before we make up our minds about whether we want to stay in australia or not.

    Actually we might just decide to rent it out for good assuming it isn't too much hassle.

    The rent minus letting fees, tax etc should cover the mortgage so it shouldn't be costing us anything to keep it.

    From what I hear its a bad time to buy in australia and definitely a bad time to sell in ireland...


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    #22
    dodgylegs
    Registered Users Posts: 86 ✭✭dodgylegs


    thanks con, just trying to figure out what to do with mine. i'll look on other posts.
    thanks
    d


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    #23
    pa_
    Registered Users Posts: 40 ✭pa_


    jackbhoy wrote: »
    These multipliers are very rough values and need to be taken as such. There is definitely a cut off point below which the value is skewed. If you make €30k in Ireland you'll probably easily make $60-75k, so that fits in with your multilpier of 2+ and is what drives a lot of this talk. However, if you earn say €80-100k as an IT contractor back home there is zero chance you will make $170-220k here, in fact the value will be more like 1-1.5 in my experience.

    My multiplier is like 1 here but I worked on daily rate in Ireland, here I'm curently fixed term with super etc, daily rate for my role here would be 1.5 max. I can live very well on that and I pretty much support a partner doing a phd as well.
    I came here for lifestyle, not economic reasons and the cost of living, rent and booze aside, is actually pretty similar to home.

    I'd foget the multiplier and measure your salary based on what market is offering, so check out seek and speak to companies/recruiters as they'll tell what you will actually make and work on that assumption.

    A colleague of mine with similar experience to the OP - except he was in Java but now a Ruby architect is on around $100 an hour. Very much in the 170-220 range.

    According to this report you should expect more than $80k in Brisbane. More like $90-$110k.

    http://au.hudson.com/Portals/AU/documents/ICT_Salary_Employment_Insights_2012-ANZ.pdf

    The multiplier depends on your lifestyle. If you are into drinking and owning houses that will raise it. If you like to not own a car/cycle and eat out instead of drinking that will lower it. Certain things in Australia suck up your money but if you avoid them you will be better off.


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    #24
    jackbhoy
    Registered Users Posts: 1,280 ✭✭✭jackbhoy


    pa_ wrote: »
    jackbhoy wrote: »
    These multipliers are very rough values and need to be taken as such. There is definitely a cut off point below which the value is skewed. If you make €30k in Ireland you'll probably easily make $60-75k, so that fits in with your multilpier of 2+ and is what drives a lot of this talk. However, if you earn say €80-100k as an IT contractor back home there is zero chance you will make $170-220k here, in fact the value will be more like 1-1.5 in my experience.

    My multiplier is like 1 here but I worked on daily rate in Ireland, here I'm curently fixed term with super etc, daily rate for my role here would be 1.5 max. I can live very well on that and I pretty much support a partner doing a phd as well.
    I came here for lifestyle, not economic reasons and the cost of living, rent and booze aside, is actually pretty similar to home.

    I'd foget the multiplier and measure your salary based on what market is offering, so check out seek and speak to companies/recruiters as they'll tell what you will actually make and work on that assumption.

    A colleague of mine with similar experience to the OP - except he was in Java but now a Ruby architect is on around $100 an hour. Very much in the 170-220 range.

    Yes, he makes $100 p/h here but in Ireland for hourly rate as architect surely he'd make minimum of €70 p/h so still not a high multiplier for comparable job?


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    #25
    Bogwarryor
    Registered Users Posts: 21 ✭Bogwarryor


    Cost of living is on par with Ireland 2007, though rent is noticibly more expensive than Ireland.


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