With a new remuneration report revealing the median salary of Australian accountants, Money Management compares the figures against financial advisers’ average income.
Chartered Accountants Australia and New Zealand’s (CA ANZ) latest Remuneration Survey report, based on data from 5,905 accountants, has highlighted the median remuneration of Australian accountants.
In comparison, the Robert Walters 2024 Salary Survey released in November 2023, which canvassed more than 1,500 respondents, uncovered the annual salary ranges for Australian financial planners.
Currently, there are over 200,000 accountants in Australia compared to just over 15,600 financial advisers.
CA ANZ’s report discovered that NSW is the highest paying state for accountants, who earn a median salary of $167,100. In comparison, the Robert Walters survey found financial advisers in NSW earned $120,000 to $160,000 last year, with these figures expected to increase further to $160,000 to $220,000 in 2024.
For advisers, the highest salary range is found in Victoria where they earn $120,000 to $180,000, and this is expected to remain at these levels this year. However, accountants in Victoria earn a median income of $153,750.
Queensland has accountants with incomes of $144,300, while wealth advisers in the same state have a salary range between $130,000 and $150,000, which will stay the same next year.
Accountants in Western Australia receive the second-highest pay at $160,950, while the ACT comes in third for accountants with $158,460, and Tasmanian accountants earn $138,125 annually.
Financial advisers in the ACT earn between $95,000 to $130,000, but the survey lacks data for advisers in Western Australia and Tasmania.
Finally, accountants in South Australia have incomes of $133,200. This is compared to financial planners with earnings of $95,000 to $130,000, which will rise from $95,000 to $150,000 in 2024.
Commenting on the accountancy data, CA ANZ CEO Ainslie van Onselen said: “There’s huge competition for young talent, and this latest survey shows that the profession is willing to compete on pay for top young talent, which is a great sign for those starting out.”
Anne Palmer, general manager for education and professionalism at the Financial Advice Association Australia, previously spoke with Money Management on the issue of talent retention in the advice industry compared to accountancy.
“A lot of graduates who are qualified in financial planning don’t go into financial planning. They [often] go into accountancy, so we’re losing a lot of the people who are qualified,” Palmer explained.
As a solution to this trend, industry professionals have emphasised the importance of hiring current financial planning students while they are still completing their degree. Students who get a job in financial advice while they are still in university are more likely to stay and progress into their professional year, Palmer explained.
