CIMA SALARY SURVEY 2013

Australia

1

ForewordCIMA’s members and students are looking forward to rapid career progression and salary rises above the national average - despite the continuing economic uncertainty. This optimistic outlook reflects the growing demand for professionally qualified management accountants who are focused on helping organisations – in both the public and private sectors - to develop strategies that are successful and sustainable in the long term.

Overall, our members and students told us that they are heading for a dynamic future with promotion and attractive earnings packages on the horizon. Their confidence may well have been boosted by CIMA’s joint venture with the American Institute of Certified Public Accountants. The result of this alliance is a new global designation, the Chartered Global Management Accountant (CGMA). The CGMA designation is rapidly gaining globally acceptance as a mark of unparalleled excellence in business and financial management.

On average, CIMA members in Australia are earning just under AUS$146,000 per annum, while CIMA students earn just under AUS$101,000; well above the national average.

However there is still a considerable gender gap among members where, on average, women earn AUS$26,216 less than their male counterparts, and CIMA is working hard to address this issue.

Ambition is a key driver for both members and students. In all, 46% said they want to develop their leadership skills. Almost all of our members and students (95%) expect to be in a different role in three years’ time. Well over half (59%) expect to be in a senior, finance-related role. The growing diversity of CIMA members as business partners is reflected by members, 12% of whom anticipate being in a very senior, non-finance role such as CEO or leading a non-finance division.

Our survey also revealed a preference for a more flexible approach to career progression. Key workplace motivators are flexibility/work-life balance (59%) and a good working environment (56%). These responses give a clear indicator to employers of what they should be offering if they want to attract the very best in management accounting expertise.

Irene Teng Regional Director - ASEAN & Australasia CIMA

2

Salary survey results

Australia average salary figures

In 2013, qualified CIMA members in Australia are earning on average AUS$134,727 in basic salary plus AUS$11,244 in bonus payments, totalling AUS$145,971 per annum.1

Part qualified students in Australia are earning on average AUS$95,526 in basic salary plus AUS$5,420 in bonus payments, totalling AUS$100,946. This compares with an official average national salary figure for the whole of Australia of AUS$58,375, reported for May 2012.2

Robust salary satisfaction

Overall 77% of all CIMA members and students are satisfied with their current salary,

which compares well with 74% and 75% reported in 2012 and 2011 respectively.

Above-inflation salary increases anticipated

92% of CIMA members are anticipating a salary rise over the next 12 months, at an average of 3.8%, compared with price inflation forecasts of around 2.3%.3 However, almost one-third (29%) are expecting a larger than average rise over the coming 12 months.

Among part qualified students, 86% expect a pay increase, at an average rate of 4.8%.

Figure 1: Annual remuneration by CIMA level

‘Qualified CIMA members earn 131% more in basic salary than the national average. Part qualified CIMA students earn 64% more than average.’

‘77% of members and students are satisfied with their current salary.’

AUS$148,916AUS$145,543

AUS$100,946

CIMA member FCMA, CGMA4

CIMA member ACMA, CGMA

Part qualifiedstudents

1 Figure may not sum due to rounding.

2 Australian Bureau of Statistics. Survey of Employee Earnings and Hours conducted in respect of May 2012. Average weekly earnings, Australia (weekly earnings of AUS$1,122.6 for all full-time adult workers was multiplied by 52 weeks to estimate average annual earnings). Available at: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6306.0/ Accessed 19 June 2013.

3 IMF World Economic Outlook, April 2012. Available at: http://www.imf.org/external/pubs/ft/weo/2013/01/pdf/text.pdf Accessed 19 June 2013.

4 Figure should be treated with some caution as it is based on the responses of 19 members.

3

Salary patterns

Annual remuneration by job role

Among qualified members, the most prevalent job roles are financial controller and finance manager. While on average finance controllers earn a mid-tier salary of c. AUS$142k, finance managers earn a higher-tier average salary of AUS$156k, boosted by substantial bonus payments of AUS$11k on average.

CIMA members at very senior levels earn substantially more on average. For example, CFOs earn c. AUS$185 per annum, including average bonus payments of c. AUS$17k.

At around AUS$120k, management accountants and finance/business analysts earn below the average for qualified CIMA members (AUS$145,971).

Figure 2: Qualified members – annual remuneration by job role

AUS$184,537AUS$167,672

AUS$155,980AUS$144,690

AUS$141,788AUS$133,040

AUS$122,149AUS$114,107

AUS$119,619AUS$113,611

AUS$145,971AUS$134,727Australia total - qualified members

CFO*

Finance manager

Financial controller

Management accountant*

Finance/Business analyst

*Caution: Low base, under 30.Lowest base: CFO (17*)Highest base: Finance manager (53)

Basic salary Bonus Total

4

‘CIMA members in Perth and Sydney earn c. AUS$157K in total annual salary.’

Annual remuneration by major city

Average salary packages for qualified members in Australia vary by location, with Perth and Sydney attracting the highest average salaries of the major cities.

Perth has two key sectors: oil, gas and alternative energy, and natural resources energy/fuel and utilities (including mining). Both sectors attract salaries above the national average of c. AUS$146k. A higher cost of living in Sydney, as well as a greater focus on very large organisations and the high-

earning industries − banking, financial services, technology and healthcare and pharmaceutical − are likely reasons for its higher than average remuneration packages.

In contrast, although Brisbane has a strong oil, gas and alternative energy sector, the manufacturing sector is also strong here, lowering the overall average salary for the city to c. AUS$134k. There is a broad spread of economic activity in Melbourne, although the two largest sectors are retail and manufacturing, resulting in an average salary similar to that of Brisbane, at c. AUS$136k.

Figure 3: Qualified members − annual remuneration by major city

PerthSalary: AUS$145,791Bonus: AUS$11,028Total: AUS$156,819 Melbourne

Salary: AUS$126,435Bonus: AUS$9,349Total: AUS$135,784

SydneySalary: AUS$141,791Bonus: AUS$14,494Total: AUS$156,285

BrisbaneSalary: AUS$125,402Bonus: AUS$8,341Total: AUS$133,744

5

Annual remuneration by sector

There are three large sectors in which earnings are above the national average. Qualified members in the natural resources, energy/fuel and utilities sector earn 8% more than the national average, with those in financial services and in the ICT, technology and telecoms sector earning 7% more.

Basic earnings in the natural resources, energy/fuel and utilities, financial services, and retail and consumer goods sectors are boosted by substantial annual bonus payments of c. AUS$14k–15k.

Senior roles attract large salaries and bonuses at multinationals

Three-quarters (74%) of qualified members are employed in large organisations with 250 or more employees, including 30% who work in very large organisations with 10,000 or more employees. While the average salary for large organisations is 3% above the national average for qualified members of AUS$145,971, the figure rises to 14% above average in very large organisations (c. AUS$167k in total salary, including c. AUS$18k in annual bonus). The greater availability of senior roles in these large multinational corporations, such as department heads and directors, is likely to be driving salaries to well above the national average.

Figure 4: Qualified members – annual remuneration by sector

AUS$157,865AUS$143,660

AUS$156,709AUS$141,364

AUS$156,133AUS$146,440

AUS$143,728AUS$129,920

AUS$138,449AUS$129,327

AUS$145,971AUS$134,727Australia total - qualified members

Natural resources, energy/fuel and utilities*

Financial services*

ICT, technology and telecoms*

Retail, consumer goods

Manufacturing and engineering*

*Caution: Low base, under 30.Lowest base: Financial services, Natural resources, energy/fuel and utilities (22*)Highest base: Retail, consumer goods (35)

Basic salary Bonus Total

6

Business and the economy

Expectations for future pay and conditions

Amid challenging world economic conditions, particularly uncertainty in China − a major buyer of Australian hard commodities5 − the expectations of CIMA members and students continue to be subdued. One-third have positive expectations for an increase in the overall profitability of the business in which they work and for salary increases across the board, although both measures display a downward trend since 2011.

Since 2011 there are greater expectations for a squeeze on future investment, leading to an anticipated increase in outsourcing. Downside factors have increased since 2011, with higher proportions expecting budget cuts (36%), job cuts (30%), recruitment freezes (27%) and salary freezes (22%).

One-half of members and students continue to anticipate changes in business process and policies over the coming 12 months, perhaps in response to spending squeezes on headcount, salaries and other expenditures.

Figure 5: Expectations for the business environment over the coming 12 months − selected

indicators

Business process/policy changes

Budget cuts

Increase in the overallprofitability of the business

Job cuts

Salary increases

Recruitment freeze

Increase in outsourcing

Salary freezes

Less money available for future investment

Increase in staff recruitment

2013 2012 2011

48%52%

49%

36%38%

26%

34%36%

44%

30%27%

17%

29%35%

42%

27%27%

21%

23%18%18%

22%14%

7%

20%19%

14%

18%21%

29%

5 IMF World Economic Outlook, April 2013. Available at http://www.imf.org/external/pubs/ft/weo/2013/01/pdf/text.pdf Accessed 19 June 2013.

7

Working conditions

Working hours

On average, Australian members and students work 43 hours per week, although almost two-fifths (37%) work less than the average.

Longer hours are linked to seniority: 46% of part-qualified students are working more than 40 hours per week, compared to 65% of qualified members. However, among qualified female members only 47% work more than 40 hours per week, and a significantly higher proportion of females than males are working part-time (12% females vs. 1% males). Furthermore, while two-fifths (41%) of qualified female members are working 35−40 hours per week, one-quarter (27%) of males are doing so. One reason for this difference in typical working hours is that achieving a work-life balance is more important to qualified females (68%) than to qualified males (55%).

Over the coming 12 months, around one-quarter (28%) of members and students expect their working hours to increase, while over two-thirds (67%) expect no change.

The two primary reasons for increasing working hours are understaffing/lack of resource (57%) and taking on more responsibility (56%). The current financial climate (40%) and company culture (31%) are also important factors in increasing hours.

Motivators at work

The key motivator at work for both members and students is flexibility/work-life balance (59%); however, this is more important for females (69%) than for males (54%), as they may be more likely to need to juggle work and non-work commitments. A good working environment is also important for all members and students (56%), while two-fifths are motivated by the scope of their role, a challenging workload and/or financial reward.

Large proportions also value an interesting role (43%) and a challenging workload (41%), while 38% are motivated by financial reward.

The CIMA qualificationstrengthens my ability

to move internationallywith my career 88%

agree

The CIMA qualificationcreates career

opportunities for me

75%agree

The CIMA qualificationstrengthens my ability

to move across allareas of the business 65%

agree

8

‘95% of members and students anticipate being in a new role within three years.’

Career plans

Seeking new opportunities

Only 5% of qualified members and part qualified students see themselves in the same role in three years’ time, suggesting the presence of a high degree of mobility and promotion prospects.

More than one-half (59%) anticipate being in a senior finance-related role such as finance manager, financial director, financial controller, CFO, head of accounting/finance or self-employed practitioner. An additional 12% anticipate being in a very senior non-finance role such as CEO/MD, head, director or manager of a non-finance division.

Among those already working as a management accountant, 42% expect to progress to finance manager or financial controller within the next three years. 52% of finance managers anticipate progressing to financial controller, financial director or CFO.

Among all members and students, 21% are planning to find another job over the next six

months and a total of 55% are planning to move job within the next two years. Of those, 84% plan to stay within Australia.

Students are more likely to seek new employment within the next two years: 67% plan to do so, and at 26%, a higher proportion than qualified members (14%) plan to move abroad and experience working in a new country.

A global career

Among members and students who plan to seek employment abroad, the UK is the most frequently named destination (44%), followed by the USA (27%) and Canada (21%).

Being close to friends and family is the key reason for planned relocation, mentioned by 48% of those considering moving abroad. Seeking a new career opportunity is also a key factor, mentioned by 43%. A promotion (34%) and improved salary (27%) are sought by many, while one-third want to experience a different culture (33%).

55% are looking to move job within the next two years, of which…

84% plan to stay in Australia

16% plan to move abroad

9

Building skill sets

Over the coming 12 months, part qualified students want to focus on developing their leadership skills (46%). Interpersonal qualities, such as communication and skills for developing others will also be important, in addition to personal development skills (all at 39%). Beyond this, a wide range of strategic and managerial skill sets are sought.

For qualified CIMA members, strong leadership

skills (46%) and strategic planning and implementation (36%) are two key skills to develop. These are followed by interpersonal skill sets: persuading and influencing (29%), communication (27%) and relationship management (27%) and skills for developing others (24%). Technical management accountancy skill sets are areas which almost one-quarter of members will be focusing on: project and change management, and data systems and processes, all at 23%.

Figure 6: Top skills that members and students wish to develop

Part qualified students Qualified members

46% Leadership

30% Decision making

46% Leadership

33% Strategic planning and implementation

36% Strategic planning and implementation

29% Persuading and influencing

37% Project management

24% Skills for developing others

27% Communication27% Relationship management

39% Communication39% Skills for developing others39% Personal development

28% Personal development

23% Project management23% Change management23% Data and systems process

25% Financial reporting

26% Change management

28% Relationship management 28% Persuading and influencing

‘Leadership skills are important

development areas for both members

and students’

10

AppendixNote: Segmented data for part qualified students is unavailable due to low base numbers.

Qualified members

Australia Base Basic salary (AUS$ per annum)

Bonus (AUS$ per annum)

Total package (AUS$ per annum)**

Total 271 134,727 11,244 145,971

Age

< 31 yrs* 11 *** *** ***

31–35 yrs 68 124,265 9,897 134,162

36–40 yrs 81 131,181 10,188 141,369

41-50 yrs 79 144,367 12,969 157,335

51+ yrs 32 148,253 13,727 161,981

Gender

Male 192 141,009 12,306 153,315

Female 79 118,582 8,517 127,099

Level

Part qualified student 57 95,526 5,420 100,946

Associate (ACMA, CGMA) 252 134,266 11,277 145,543

Fellow (FCMA, CGMA) 19* 137,895 11,021 148,916

Size of organisation

Micro/small (1–50 employees)*

25* 141,316 5,186 146,502

Medium (50–249 employees)

44 117,489 5,841 123,330

All Large (250+ employees) 202 137,830 13,241 151,071

250−999 42 129,023 8,723 137,747

1,000–9,999 79 130,755 10,844 141,599

10,000 or more 81 149,088 17,866 166,954

City

Brisbane 38 125,402 8,341 133,744

Melbourne 72 126,435 9,349 135,784

Perth 45 145,791 11,028 156,819

Sydney 94 141,791 14,494 156,285

Experience since qualifying

Up to 3 years 39 116,559 7,907 124,466

4–5 years 42 130,238 10,373 140,611

6–9 years 56 120,982 7,958 128,940

10–19 years 91 144,734 13,229 157,962

20+ years 43 147,724 14,143 161,867

*Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

11

Qualified members

Australia Base Basic salary (AUS$ per annum)

Bonus (AUS$ per annum)

Total package (AUS$ per annum)**

Total 271 134,727 11,244 145,971

Industry

Financial services 22* 141,364 15,345 156,709

ICT, technology and

telecoms

23* 146,440 9,692 156,133

Manufacturing and

engineering

28* 129,327 9,121 138,449

Natural resources, energy/

fuel and utilities

22* 143,660 14,205 157,865

Retail and consumer goods 35 129,920 13,808 143,728

Job role

CFO 17* 167,672 16,865 184,537

Finance/Business analyst 51 113,611 6,008 119,619

Finance manager 53 144,690 11,290 155,980

Financial controller 32 133,040 8,748 141,788

Management accountant 28* 114,107 8,042 122,149

*Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

12

Technical information

Survey responses were collected by CIMA among active part qualified students and qualified members between 25 April and 19 May 2013, via an online survey. The data was analysed and reported by an independent specialist consultancy.

Just over 21,000 part qualified students and approximately 25,000 qualified members were selected and invited to participate in the international study, which covers 23 markets in total. Within the study period 6,039 responded globally, including 2,471 from the UK.

The response data presented in this report has been weighted to reflect the profile of CIMA part qualified students and qualified members by market and level of study. All base numbers quoted in figures report the lowest unweighted base; i.e. the number of responses.

Further information

For further information on technical matters relating to this survey, contact yourvoice@cimaglobal.com

For further country specific analysis and reports, visit CIMA MY JOBS at http://myjobs.cimaglobal.com

Acknowledgements

This research was conducted by CIMA in conjunction with Spotlight Market Research & Editing. The Chartered Institute of Management Accountants is a Market Research Society Company Partner. Both CIMA and Spotlight abide by the Market Research Society’s Code of Conduct and the Data Protection Act.

CIMA Australia5 Hunter Street, Sydney, NSW 2000T: +61 (0)2 9376 9902E: sydney@cimaglobal.com

© September 2013, Chartered Institute of Management Accountants