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Engineer Salary in Australia: State and Industry Differences Explained
Understand how engineer salary compares to the national line. See state and industry benchmarks from ABS and Fair Work data, with salary index examples.
Engineer salaries typically sit above the national line (index 100), with mining engineers near index 155 and professionals in services near index 115, varying by state.
What does 'engineer salary' mean in Australia?
When people ask about an engineer salary in Australia, they usually want to know how much engineers earn compared to other workers. The best way to answer that is to use the Salary Index, which sets the national line at 100. That line is based on the Australian Bureau of Statistics' Average Weekly Earnings for full-time adult ordinary-time workers: $2,083.70 per week, or $108,352 per year (May 2026).
An engineer salary above that line means the index is over 100. Below it, under 100. Most professional engineers sit above the line, but the exact figure depends on the industry they work in and the state they live in.
Industry differences for engineer salary
Engineers work across many industries, and each industry has its own earnings benchmark. The industries page on Salary Index shows the index for each sector.
- Mining has an index of 154.7. That means the typical full-time worker in mining earns about $167,600 a year. Mining engineers, especially in remote sites, often earn more than that.
- Professional, scientific and technical services has an index of 114.7, or about $124,300 a year. This covers consulting engineers, design firms, and technical roles.
- Manufacturing and Construction are also common for engineers, but their indices are lower than mining. The ABS does not publish a separate index for those, but they fall between the retail and professional averages.
If you are an engineer in mining, your salary index could be 150 or higher. In professional services, it might be 115 to 130. Entry-level engineers often start on award rates or enterprise agreements that pay above the national minimum wage but below the industry average.
State differences for engineer salary
Where you live also matters. The states page shows the index for each state and territory.
- Western Australia index 106.9 ($115,825 annualised). WA has a strong mining sector, so engineers there often earn well above the state average.
- ACT index 109.9 ($119,090). Many engineers work in federal government or defence contracting.
- New South Wales index 101.2 ($109,658). A mix of industries, with some high-paying engineering roles in Sydney.
- Victoria index 98 ($106,137). Slightly below the national line, but engineers in specialised fields can earn more.
- Queensland index 97.9 ($106,064). Similar to Victoria, but mining in central and north Queensland can push earnings higher.
- South Australia index 94.6 ($102,450). Lower overall, but defence and aerospace engineers may earn above average.
- Tasmania index 88.6 ($96,008). The lowest state index, but engineers in hydro or mining may still earn well.
- Northern Territory index 95.2 ($103,173). Remote work often attracts higher pay.
So an engineer salary in WA or ACT is likely to be higher than in Tasmania or SA, even for the same role.
How the Salary Index works for engineer salary
The Salary Index is simple: take your yearly gross salary, divide it by the national line ($108,352), and multiply by 100. For example, an engineer earning $130,000 has an index of 120. That means they earn 20% more than the average full-time adult worker.
You can use the how the index works page to calculate your own index.
What about awards and super?
Engineers are not usually covered by a single award. Some are under the Professional Employees Award, others under industry-specific awards like the Mining Industry Award or Health Professionals and Support Services Award. The Fair Work Ombudsman provides pay guides for each award, but these set minimums, not typical pay.
Superannuation is 12% from 1 July 2026, paid on top of salary. So an engineer salary of $130,000 means the employer also contributes $15,600 to super.
Tax on engineer salary
For the 2026-27 financial year, resident tax rates (excluding Medicare) are:
- $0 to $18,200: nil
- $18,201 to $45,000: 15%
- $45,001 to $135,000: 30%
- $135,001 to $190,000: 37%
- Over $190,000: 45%
Plus a 2% Medicare levy. An engineer earning $130,000 would pay about $29,467 in tax plus $2,600 Medicare, leaving a take-home of roughly $97,933 before any deductions.
Where to find more on engineer salary
For the most current data, check the Australian Bureau of Statistics for Average Weekly Earnings and Employee Earnings. The Fair Work Ombudsman has pay guides for awards that may apply to some engineers. The topics page on Salary Index covers related subjects like industry comparisons and state benchmarks.
Remember, the figures here are benchmarks, not a quote for a specific job. Your actual engineer salary will depend on your qualifications, experience, employer, and location.
Questions people ask
What is the average engineer salary in Australia?
There is no single average because engineer salaries vary by industry and state. The Australian Bureau of Statistics reports that the Professional, scientific and technical services industry has an index of 114.7 (annualised ~$124,300), while Mining has an index of 154.7 (~$167,600). Many engineers work in these sectors. Individual salaries depend on role, experience, and location.
How does engineer salary compare to the national line?
The national line (index 100) is full-time adult ordinary-time earnings of $108,352 per year. Most engineer salaries sit above this line. For example, an engineer earning $130,000 would have an index of 120. Engineers in mining or in high-paying states like WA or ACT often have indices well above 100.
Which state pays engineers the most?
Based on state indices, Western Australia (index 106.9) and the Australian Capital Territory (index 109.9) have the highest overall earnings. Engineers in WA, especially in mining, tend to earn more than those in other states. Tasmania has the lowest index at 88.6. However, individual engineer salaries can exceed these averages depending on the employer and industry.