It's worthwhile when you’re at a good point in your career to get a pay boost.
If you're a high performer, a Master of Business Administration (MBA) can pay for itself many times over. An MBA degree has the potential to place you on a higher career trajectory, generating tens of thousands of dollars in extra income each year.
With flexible study options available, the cost side can be managed effectively too. For instance, accelerated online courses enable you to earn the degree in just two years without taking time off work. Let's explore the potential return on investment (ROI) from an MBA in Australia.
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Does an MBA Increase Your Salary?
The evidence that an MBA does in fact increase your salary is quite compelling. The salaries of MBA graduates are generally impressive. While it is difficult to scientifically verify the income advantages, here are some statistics that make for interesting reading.
Graduates of postgraduate business schools are well paid
Among recent graduates of postgraduate university courses in Australia, among the highest paid are business school graduates. We discovered this using data from the Graduate Outcomes Survey.
The median salary of male Business and Management graduates was $120,000 in 2022, topping all 21 categories. The group was followed by Health Services ($105,000), Computing and Information Systems ($104,400) and Engineering ($104,400). No figures were available for dentistry due to a small sample size.
For females, Business and Management ($110,000) was only behind Dentistry ($114,000), beating other study fields such as Psychology ($86,700) and Social Work ($81,300).
Top 10 median salaries by postgraduate field
| Field of Study | Annual Salary (AUD) |
|---|---|
| Dentistry | $123,700 |
| Business and Management (including MBA degrees) | $115,000 |
| Computing and Information Systems | $100,000 |
| Engineering | $100,000 |
| Health Services and Support | $93,900 |
| Science and Mathematics | $93,700 |
| Nursing | $91,300 |
| Teacher Education | $89,000 |
| Psychology | $88,000 |
| Humanities, Culture and Social Sciences | $87,000 |
Note: These are the top 10 out of 21 categories. Salaries are reported several months after graduating. Source data: GOS.
How Much Does an MBA Earn in Australia?
Based on an average of four income measures, an MBA in Australia is estimated to have a salary of $116,667 per year.
The estimated income for an Australian with an MBA reflects the earnings of (a) recent graduates of postgraduate business and management courses (b) professionals working as managers and (c) self-reported incomes of people with MBAs.
| Sample Group | Data Source | Median or Average Salary (AUD) |
|---|---|---|
| Graduate business school alumni | Graduate Outcomes Survey | $115,000 |
| Managers | Seek | $130,000 |
| PayScale users with an MBA | PayScale | $105,000 |
| Average | $116,667 |
Note: Figures are indicative only. No truly reliable measure of MBA earnings is available for Australia. Each sampling method has its own flaws. Updated: 21 May 2024.
The calculation method assumes the majority of MBA graduates soon find employment in management. A common requirement for entry into MBA courses is that applicants have multiple years of professional experience in supervisory or management roles.
Related: What Can You Do with an MBA?
Which MBA Field is in Most Demand?
If you want to know which MBA is most in demand in Australia, look no further than what's happening with technology. Business managers and leaders want to stay ahead of the technology curve, especially when managing workplace change.
The top in-demand fields include business analytics, healthcare management, technology management, and digital marketing. Students explore these fields from a manager's perspective. At the same time, program participants study essential topics that are common to all good MBA programs.
At its core, every MBA program will cover management and leadership. These topics should be embedded in every subject. You can also expect to learn some accounting and finance, marketing, and business strategy.
To enhance your skills in data-driven decision making, an MBA in Business Analytics is a smart choice. Companies rely heavily on data to gain insights into customers and processes. You'll learn how to analyse and use data to inform strategic decisions.
Subjects may include data mining, statistical analysis, data visualisation, and predictive modelling. Prior analytics experience is not required.
Marketing is essential to any business, and an MBA in Digital Marketing offers a unique edge. With the rise of online technologies, companies are looking for executives with a strong grasp of this field.
Courses are suitable for experienced marketers and those without a marketing background. You'll learn marketing from a manager's perspective. Topics: digital consumer behavior, emerging technologies, data-driven marketing, and digital marketing trends.
Health professionals can launch or advance their managerial careers with an MBA in Healthcare Management. Graduates typically earn around $130k annually, with roles like clinical manager or nurse unit manager.
The program focuses on management, clinical governance, and patient safety, positioning graduates for high-paying executive roles in hospitals and agencies. Increasing healthcare demand ensures ample job opportunities, making this degree a strategic investment.
An MBA in Technology Management combines traditional MBA coursework with tech-specific training. You'll develop skills to lead technology teams, manage tech-intensive projects and create innovative solutions.
The degree is for individuals with or without a technical background. Programs steer clear of in-depth technical training while still covering technology subjects like cybersecurity management, data analytics management, and design and innovation.
How Much Does an MBA Cost?
So far, we've only looked at the benefit side of the equation and not the costs. For an MBA to be worth it, the salary gains should exceed the financial expense.
The average cost of an MBA in Australia is estimated to be around $47k for international students and $58k for Australians. These are median scores, with a range for tuition fees anywhere from $30k to beyond $100k. The figures comes from published fee schedules at the biggest MBA schools in Australia.
For online MBA courses, fees tend to be lower. The average cost of an online MBA is estimated to be $49,990. A further advantage of online learning is the ability to work full-time while studying part-time.
Related: Best Accelerated Online MBA Programs