AU$100,000 salary sounds like Rs 67 lakh in India, but an Indian in Australia explains the reality

An Indian man living in Australia has explained why a AU$100,000 annual salary can appear significantly higher when converted into Indian rupees, while taxes, rent and everyday expenses reduce the amount he can actually save. Karan Singh Gill discussed the difference in an Instagram video, breaking down how his income is spent in Australia.

“When I told my family that I earn AU$100,000 in Australia, they took out a calculator, wrote 67 lakh and declared me a crorepati,” Gill said in the video.

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Why Rs 67 lakh does not reflect actual savings

Gill said the conversion was not technically incorrect, as AU$100,000 is equivalent to around Rs 67 lakh at an exchange rate of Rs 67 per Australian dollar. However, he pointed out that the income is earned and spent in Australia.

“That Rs 67 lakh is not going to be spent in India, it will be spent in Australia,” he said.

Gill said AU$22,788 of his annual income goes towards tax and the Medicare levy, leaving approximately AU$77,000. He estimated annual rent at AU$26,000, based on an average weekly rent of AU$500, bringing the remaining amount to around AU$51,000.

He then accounted for expenses including groceries, transport, electricity, phone bills and insurance, which he estimated at another AU$20,000. This would leave about AU$31,000.

Gill explains Australia’s cost of living

Gill said people can mistakenly convert the remaining amount into rupees and assume that a person earning AU$100,000 is saving a large amount in Indian currency.

“Conversion only applies to the money that you send to India. The money you spend here doesn't have that Rs 67 magic,” he said.

He used everyday expenses to illustrate the difference. A AU$5 coffee would convert to around Rs 355, while a AU$40 haircut would be approximately Rs 2,700.

“Same salary, different country, completely different maths,” Gill said.

He added that the amount remaining after taxes and living expenses provides a more meaningful picture of a person's financial position. According to Gill, the surplus can be used for goals such as a home deposit and an emergency fund.

He also said that when Australian banks assess someone for a loan, gross salary alone does not provide the complete picture, as their overall finances and surplus can also be considered.

What Gill said in his Instagram caption

Gill made a similar point in the caption accompanying his video.

“Earning AU$100k in Australia sounds like Rs 67 lakh-until you realise the money is being spent in Australia too,” he wrote.

“After tax, rent and everyday expenses, that AU$100k could leave you with roughly AU$31k in this example,” he added. He said currency conversion matters for money sent to India, while expenses in Australia continue to be paid at Australian prices.

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Social media users debate Australia-India costs

The video prompted discussion among users about the cost of living in Australia compared with India.

One user said haircuts in India can already cost Rs 3,000 and coffee Rs 500, while noting that such prices are considered luxury expenses in India.

Another user said the comparison was not only about money and pointed to the peace and facilities available in the country.

A third user compared living costs in Melbourne with those in Tier 1 Indian cities, saying coffee at a decent cafe in Gurgaon can cost Rs 400 to Rs 500 and men's haircuts can cost Rs 1,000 to Rs 1,500, with women's haircuts costing considerably more.

Another user wrote, “Coffee is 400rs and Haircut is 2500rs in India as well.”

Another person pointed to differences in subscription pricing across countries, saying services such as YouTube Premium, Spotify, Apple Music, Netflix and Prime are cheaper in India but cost more in the US and other countries. The user added that GDP per capita also influences pricing and cited GTA 6 as an example, saying the game is not as expensive in India compared with the US.

Another commenter said people earning in India also pay taxes, GST, groceries and insurance, and argued that saving 30% of income is uncommon. The user also said Gill was doing well in Australia compared with his counterparts in India.

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