Which state has the best salary growth? 

A new report has compared salary data between the different Australian states, providing some interesting results.

Hays’ 2025–26 financial year salary guide has homed in on the differences in terms of salary growth pertaining to each Australian state, highlighting the “leaders” and “laggards” in the state-against-state comparison – with Queensland reigning supreme.

“Australia’s salary landscape is becoming more polarised than ever. While certain professionals are enjoying significant pay rises and strong job prospects, others face stagnant wages, rising dissatisfaction, and tougher job markets, a reality that exposes deep fractures in the nation’s workforce,” Hays said in a release.

According to the survey results, the Sunshine State held the strongest salary growth nationally, with average salaries rising 5.6 per cent throughout the past year, with pre-eminent increases occurring in construction (+13 per cent), mining and resources (+9 per cent), and legal (+7 per cent).

It wasn’t all sunshine in the Sunshine State, with its average salary falling below the national average of $130,000, and salary declines in key sectors such as financial and insurance services (-9 per cent) and manufacturing (-4 per cent).

Similar to the State of Origin match, NSW came up short in terms of salary growth, but it held a better average salary, at $143,000. On top of that, 22 per cent of NSW respondents claimed to earn between $150,000-199,000 – one of the highest proportions compared to other states.

Victoria’s average salary resided at $142,300, above the national average. Seventy per cent of Victoria’s respondents also claimed that they received a pay rise over the past year.

On the flip side, Victoria ranked as one of the lowest states for high-income earners, with only 2 per cent earning over $250,000.

“State-level salary movements are primarily being driven by cost-of-living adjustments, interstate competition for talent and economic stimulus. However, without regional pay strategies and workforce renewal, some states risk falling further behind,” said Matthew Dickason, chief executive APAC at Hays.

South Australia accounted for the highest average salary in the nation at $147,200 and the highest proportion of people earning $250,000+, sitting at 8 per cent, spurred forward by the stronger number of workers in both mining and energy roles.

Tasmania, however, accounted for the lowest average salary in the country at $125,900, and the largest conglomerate of workers earning between just $50,000-99,000, with a large cohort of the state’s workers operating in the public sector.

Overall, the ACT and Northern Territory posted the lowest average salary increases, at 3.7 per cent and 3.2 per cent, respectively, but held the largest number of casual and freelance workers compared to the other states.

“The labour market is no longer forgiving,” said Dickason.

“Employers who act now to benchmark roles, align pay with performance and benefits with expectations, and reward potential will win. Those who don’t will lose their best people to hungrier competitors and more giving industries.”