The role of a Chief Financial Officer (CFO) is pivotal for any organization, overseeing its financial operations, strategic planning, and fiscal management.
In Australia, the compensation for this key executive position varies across different cities, reflecting the cost of living, demand for skilled professionals, and the economic landscape of each location.
What Does a CFO Earn in Australia?
In Australia, a Chief Financial Officer (CFO) earns an average salary of approximately $171,093 AUD per year. This figure is derived from an analysis of data provided by sources such as SEEK, Robert Half, Talent.com, Indeed, PayScale, and Glassdoor.
Below is a comparison table of CFO salaries in Australia according to different sources as of February 2024:
| Source | Average Base Salary Range/Average Annual Salary | URL |
|---|---|---|
| SEEK | $205,000 to $225,000 | SEEK |
| Robert Half | $171,500 to $230,000 | Robert Half |
| Talent.com | $174,023 / Annual | Talent.com |
| Indeed | $182,342 / Annual | Indeed |
| PayScale | AU$163,942 / year | PayScale |
| Glassdoor | $90,500 / year | Glassdoor |
Below you will find the CFO salaries across Australia’s major capital cities, leveraging current data from job-seeking sites like SEEK and SalaryExpert to offer a comprehensive overview.
Melbourne
In Melbourne, the cultural and financial hub of Victoria, CFOs can expect to earn an average salary of approximately $250,000 AUD per year. This figure positions Melbourne as the city with the highest average salary for CFOs in Australia, indicative of its vibrant economy and the significant demand for financial leadership in both the public and private sectors. (*)
Brisbane
Brisbane, known for its booming industries and as a center for business in Queensland, offers CFOs an average salary of about $235,000 AUD annually. This substantial figure reflects Brisbane’s growing economy and the critical role CFOs play in steering organizations through periods of growth and change. (*)
Sydney
Sydney, Australia’s largest and most globally recognized city, provides CFOs with an average salary of $225,000 AUD per year. As a leading financial center, Sydney’s competitive compensation is reflective of the high cost of living and the premium placed on executive talent within its dynamic market. (*)
Perth
In Perth, the capital city of Western Australia known for its mining and resources sector, CFOs earn an average salary of $316,488 AUD per year. This salary is indicative of the city’s reliance on high-stakes industries where financial oversight and strategic financial planning are crucial. (*)
Adelaide
Adelaide, known for its defense and manufacturing sectors, offers CFOs an average salary of $308,465 AUD per year. This figure is significant, considering the city’s smaller size compared to other capitals, highlighting the importance of financial roles in supporting Adelaide’s industrial sectors. (*)
Comparing Across Other Major Cities
Other notable cities such as Newcastle, Maitland & Hunter, and Canberra also offer competitive salaries for CFOs at $195,000 AUD and $170,000 AUD respectively. These salaries reflect the diverse economic activities and the varying scales of operations across Australia’s regions. (*)
How Long Does It Take To Become a CFO in Australia?
In Australia, the journey to becoming a Chief Financial Officer typically involves a combination of formal education, extensive work experience, and professional development.
Aspiring CFOs usually start with a bachelor’s degree in finance, accounting, or a related field, followed by obtaining relevant certifications such as CPA (Certified Public Accountant) or CA (Chartered Accountant).
Building a career that progresses through various roles in finance, from an accountant to a finance manager and then to senior financial leadership positions, is essential. This path can take anywhere from 10 to 15 years, depending on the individual’s dedication, the complexity of their roles, and the opportunities available within their organizations or industries.
Becoming a virtual CFO in Australia generally follows a similar trajectory to that of a traditional CFO, requiring a blend of formal education, professional qualifications, and extensive experience in finance and leadership roles.
Outsourcing CFO Services: A Cost-Effective Strategy for SMEs
The role of a CFO is undeniably critical across all sectors, with compensation reflecting the level of responsibility, expertise required, and the geographical economic conditions.
As companies continue to navigate financial challenges and seek growth opportunities, the demand for skilled CFOs is likely to remain strong, maintaining upward pressure on salaries in major cities across Australia.
For small to medium-sized enterprises (SMEs), outsourcing chief financial officer services can often prove to be a more cost-effective strategy. The option of engaging with a virtual CFO presents a significantly more affordable alternative compared to the financial burden of employing a full-time CFO.
This cost-saving measure, considering the cost of hiring virtual CFOs, enables SMEs to access expert financial guidance and strategic planning without incurring the heavy overhead associated with a full-time executive’s salary and benefits.
The affordability and efficiency of virtual CFO services offer flexibility and scalability, allowing businesses to customize the level of service according to their specific needs and financial capabilities. This approach not only optimizes resources but also ensures that SMEs can benefit from high-level financial expertise at a fraction of the cost.
Whether in the bustling economic centers of Melbourne and Sydney or the resource-rich landscapes of Perth and Adelaide, CFOs command significant remuneration, underlining their pivotal role in shaping the financial health and strategic direction of businesses.
