Where do doctors earn more, UK or Australia? A side-by-side comparison shows how Australia turns the same hours into dramatically higher take-home pay.
Key takeaways
- An FY2 doctor earns about £42,000 basic in the UK, versus roughly £45,600 equivalent base pay as a PGY2 in Australia.
- Australian penalty rates (150–250%) turn overtime into real money, pushing monthly take-home far above NHS banding.
- A typical PGY2 in NSW can take home ~£1,260 more per month, around £15,000 extra per year after tax.
- Employer-paid superannuation (12%) and salary packaging boost income in ways the NHS does not match.
- Even accounting for Sydney or Melbourne rent, most doctors remain £700+ better off each month.
“I’m not moving for the weather. I’m moving because I can’t afford my rent.”
That sentiment, echoed by a viral LBC caller and thousands of Resident (formerly “junior”) doctors on Reddit, is the driving force behind the 2026 NHS exodus. While the sun is nice, the real pull is financial solvency.
But is the “Australian Gold Rush” a myth? Do the higher costs of living in Sydney or Melbourne eat up the pay rise?
We crunched the numbers using the 2025/2026 NHS Pay Deal and current Australian State Awards to create a side-by-side “payslip” comparison. The short answer? It’s not about the base salary. It’s about the “extras” that the NHS doesn’t pay you.
Related: How UK Resident Doctors Are Moving to Australia
Resident Doctor Salary “Base Rate” Myth
If you only look at the job advert, the difference seems underwhelming.
- UK Foundation Year 2 (FY2): After the 2025 uplift, your basic pay is £42,008.
- Australia PGY2 (Resident): In NSW, the base rate is approx. $89,095 AUD (~£45,600).
On paper, that’s only a £3,500 difference. Hardly worth moving halfway across the world for, right?
Wrong.
In the UK, your “base” is often the ceiling. In Australia, your “base” is just the starting line. The Australian system pays strict penalty rates for every hour outside 8am-6pm Mon-Fri. The NHS “banding” system rarely competes with 200% overtime rates.
The Payslip Face-Off: UK FY2 vs. Australia PGY2
Let’s look at a typical month. The Scenario: You work a standard rota (approx. 47 hours/week avg), including two weekends and four night shifts in the month.
| Line Item | UK NHS Doctor (FY2) | Australian Doctor (PGY2 – NSW) |
| Base Salary | £3,500 / month | $7,424 AUD / month |
| Overtime/Unsocial | + £1,166 (Fixed Banding avg) | + $3,200 AUD (Penalty Rates)* |
| Gross Monthly Pay | £4,666 | $10,624 AUD |
| Pension/Super | – £457 (Deducted from you) | + $1,274 AUD (Paid on top by employer) |
| Taxable Income | £4,666 | $9,655 AUD (Reduced via Salary Packaging)** |
| Est. Tax & NI/Levy | – £1,150 | – $2,550 AUD |
| Student Loan (Plan 2) | – £180 | $0 (Repayment threshold is higher for overseas) |
| NET TAKE HOME | ~£2,880 | ~$8,074 AUD |
| GBP Equivalent | £2,880 | £4,140 |
*> Note: Australian penalty rates are 150% for Saturdays, 175-200% for Sundays, and 250% for Public Holidays. This calculation assumes a standard diverse roster.
**> Note: See “Salary Packaging” below.
The Verdict: The Australian doctor takes home roughly £1,260 more per month. That is £15,000 of extra post-tax cash per year.
Related: How UK Resident Doctors Are Moving to Australia
The 3 “Hidden” Income Boosters
The table above hides three massive financial perks that don’t exist in the NHS.
1. Salary Packaging (The Tax Loophole)
This is the game-changer. Because public hospitals are charities/non-profits in Australia, the Australian Tax Office (ATO) allows you to take part of your salary tax-free.
- Living Expenses: You can claim up to $9,010 AUD per year for rent or mortgage.
- Meal Entertainment: You can claim another $2,650 AUD for dining out.
- Effect: You stop paying tax on the top ~$11,600 of your income. This instantly boosts your monthly net pay by hundreds of dollars.
2. Superannuation (12%)
In the NHS, you pay ~9.8% of your own salary into the pension pot. It comes out of your pocket. In Australia, the employer pays Superannuation (pension) on top of your salary.
- 2025 Rate: From July 1, 2025, the rate is 12%.
- On a $120k total package, that’s $14,400 going into your investment fund every year, at zero cost to you.
3. CME Allowances
Most Australian hospitals provide a “Continuing Medical Education” (CME) allowance.
- Value: Typically $2,000 – $5,000 AUD per year.
- Use: This refunds your exam fees, conferences, or even a new laptop. In the UK, you usually pay for these out of your taxed income.
Related: How UK Resident Doctors Are Moving to Australia
But… Isn’t Sydney Too Expensive? (The “Latte Index”)
The common counter-argument is: “Sure, you earn more, but rent in Sydney is insane.”
It is true that Sydney and Melbourne are expensive. However, when compared to London or the South East of England, the difference is negligible.
- Rent: A 1-bed flat in Sydney’s Eastern Suburbs (near beaches/hospitals) averages $750/week (~£385). A similar flat in London Zone 2 averages £450+/week.
- Groceries: Australian supermarkets are approx. 15% more expensive than Tesco.
- Utilities: Energy bills in Australia are generally lower due to the climate (less heating).
The Bottom Line: Even if your cost of living is £500/month higher in Australia (a generous estimate), you are still £700+ better off per month than in the UK—with the added bonus of living by the ocean.
Conclusion: The “Freedom” Dividend
The financial data is clear: moving to Australia is an immediate pay rise of roughly 30-40% in real terms. But the real value isn’t just the money; it’s the autonomy the money buys you.
It’s the ability to save for a house deposit. The ability to pay for exams without stress. The ability to work a 38-hour week and actually be paid for the 39th hour.
Ready to make the move? The money is real, but the paperwork is too. You need to navigate the AHPRA registration maze first.
Read our step-by-step guide: How UK Resident Doctors Are Moving to Australia