Profits Built on a Wage Gap

How much of each company's profit depends on paying offshore workers a fraction of Australian wages? For some, the answer is: most of it.

This is an illustrative estimate. We calculate the wage differential between employing workers in Australia (~$110,000/yr incl. super and on-costs) versus offshore (~$25,000/yr). If a company has 1,000 offshore workers, the estimated saving is ~$85,000,000/yr. We compare that to reported net profit.

7

Companies where 30%+ of profit comes from wage gap

$6,134M

Total estimated wage differential

72,117+

Offshore workers across these companies

7 companies would lose 30% or more of their profit if they paid all workers Australian rates. Their business model depends on the wage gap between Australian and offshore labour. The profits are real — but they exist because thousands of workers are paid a fraction of what Australians earn for the same work.

CompanyNet ProfitOffshore WorkersEst. Wage DiffProfit After% of Profit
WorleyWOR$500M6,000+$510M-$10M102%
TPG TelecomTPG$300M2,900+$247M$53M82%
SeekSEK$250M1,500+$128M$122M51%
TelstraTLS$1,800M10,000+$850M$950M47%
AMPAMP$200M1,000+$85M$115M43%
SuncorpSUN$1,100M4,500+$383M$717M35%
IDP EducationIEL$200M750+$64M$136M32%
Light and WonderLNW$600M2,000+$170M$430M28%
IressIRE$50M142+$12M$38M24%
ANZANZ$6,500M13,740+$1,168M$5,332M18%
PEXA GroupPXA$80M165+$14M$66M18%
QBEQBE$1,200M2,383+$203M$997M17%
REA GroupREA$650M1,187+$101M$549M16%
Netwealth GroupNWL$120M204+$17M$103M14%
WiseTech GlobalWTC$250M428+$36M$214M14%
Centuria CapitalCNI$80M116+$10M$70M13%
CochlearCOH$389M400+$34M$355M9%
Aristocrat LeisureALL$1,300M1,206+$103M$1,197M8%
Commonwealth BankCBA$10,116M10,000+$850M$9,266M8%
NABNAB$7,100M6,000+$510M$6,590M7%
Bank of QueenslandBOQ$300M213+$18M$282M6%
ComputershareCPU$500M350+$30M$470M6%
MacquarieMQG$3,500M1,800+$153M$3,347M4%
News CorporationNWS$500M250+$21M$479M4%
Coles GroupCOL$1,100M378+$32M$1,068M3%
Woolworths GroupWOW$1,700M500+$43M$1,657M3%
WesfarmersWES$2,500M750+$64M$2,436M3%
Insurance Australia GroupIAG$1,000M200+$17M$983M2%
Westpac Banking CorporationWBC$7,000M2,000+$170M$6,830M2%
ASXASX$500M100+$9M$491M2%
AGL EnergyAGL$700M155+$13M$687M2%
Qantas AirwaysQAN$2,100M400+$34M$2,066M2%
ResMedRMD$1,200M200+$17M$1,183M1%
Origin EnergyORG$800M100+$9M$791M1%
Transurban GroupTCL$800M100+$9M$791M1%

Meanwhile, at the top

Worley 102% of profit from wage gap. CEO Chris Ashton earns $4,800,000/yr. The company has 6,000+ offshore workers paid ~$25,000/yr each.

TPG Telecom 82% of profit from wage gap. CEO Inaki Berroeta earns $7,113,000/yr. The company has 2,900+ offshore workers paid ~$25,000/yr each.

Seek 51% of profit from wage gap. CEO Ian Narev earns $4,937,000/yr. The company has 1,500+ offshore workers paid ~$25,000/yr each.

Telstra 47% of profit from wage gap. CEO Vicki Brady earns $6,700,000/yr. The company has 10,000+ offshore workers paid ~$25,000/yr each.

AMP 43% of profit from wage gap. CEO Blair Vernon earns $4,990,000/yr. The company has 1,000+ offshore workers paid ~$25,000/yr each.

Suncorp 35% of profit from wage gap. CEO Steve Johnston earns $6,500,000/yr. The company has 4,500+ offshore workers paid ~$25,000/yr each.

IDP Education 32% of profit from wage gap. CEO Tennant Reed earns $3,400,000/yr. The company has 750+ offshore workers paid ~$25,000/yr each.

Illustrative estimate only. Uses average Australian employment cost of $110,000/yr (incl. super and on-costs) vs average offshore cost of $25,000/yr. Actual figures vary by role, seniority, and location. Excludes companies with primarily international operations (engineering, mining, resources) where overseas workers serve local markets. Net profit figures from most recent annual reports.