Survey confirms Australians expect to get a pay rise this year

Just over two thirds of Australians expect to get a pay rise this year with one third claiming they will look for another job if their request is unsuccessful a CareerOne.com.au survey has revealed.

The survey conducted by CareerOne.com.au in partnership with CoreData in April 2008 also found:

• Almost half of respondents (47 per cent) believe they would need a five per cent pay rise to stay ahead of inflation.

• Almost 60 per cent of respondents said they don’t salary package despite two thirds saying their companies offer the service.

• Of those that don’t salary sacrifice, almost half (46 per cent) don’t know what salary sacrificing is.

• Over half of all respondents aren’t aware of what items are tax deductible and of these 60 per cent aren’t aware of what is claimable.

• Despite ‘choice of super’ being introduced more than two years ago, almost 40 per cent of respondents haven’t transferred or rolled over all their superannuation funds into one fund.

• 70 per cent of respondents don’t personally contribute any of their monthly income (above their employer’s compulsory contribution) into their superannuation. From which, most claimed they couldn’t afford to.

• Two thirds of respondents aren’t aware of changes to income tax rates coming into affect in July 2008.

• 90 per cent of respondents look after their personal finances themselves rather than have an accountant do it.

“On the one hand we have the Reserve Bank calling for wage restraint as a way of coping with inflation and on the other we have employees looking for wage increases – again, to cope with inflation and the rising cost of living, ” Kate Southam, editor, CareerOne.com.au said.

“For employers, it will be a real balancing act this year as our survey reflects what many people are feeling – that is, if they don’t get a pay rise they will look for another job,” she said.

The survey also revealed 90 per cent of respondents self manage their personal finances but many respondents claimed they weren’t aware of important issues such salary sacrificing options.

“If employers are unable to budget for pay rises, where possible, they must put in place initiatives to better educate their employees on personal tax savings offered in the workplace. Contributing superannuation payments on top of an employers’ compulsory nine per cent contribution is another way Australians can add to their financial health in the long term,” Ms Southam said.

CareerOne.com.au has launched a Salary & Wages section in the editorial content of the website that includes articles and useful links on important personal finances issues.