Fewer school leavers are studying for a career in accounting. Since 2018, accounting degree enrolments have fallen by about 40% in New Zealand and by half in Australia. Yet, in both countries, many accounting firms continue to pay graduates lower starting salaries than those offered by competing industries.

The Prosple Graduate Salary Guide shows that the average graduate salary in accounting and advisory is A$68,685 and NZ$55,937 in Australia and New Zealand respectively. This compares with sectors such as energy and utilities (A$88,382 and NZ$63,845), government and public service (A$77,896 and NZ$70,731) and law (A$84,343 and NZ$60,281).

Graduate job annual salary by industry sector

“Starting pay sends a message about how an organisation values the skills and workload expected of graduates,” says Megan Alexander CA, managing director of Robert Half New Zealand. “There’s a genuine risk that accounting is losing high-potential graduates to professions such as technology, engineering and some specialist finance pathways.”

She questions the assumption that graduates will accept below-market starting pay in exchange for future potential.

“Strong long-term prospects is one of accounting’s biggest advantages, but it only compensates for modest starting salaries when the progression is clear, credible and achievable,” she says. “Employers need to treat graduate recruitment as a long-term workforce investment, rather than simply filling an entry-level vacancy. Housing, transport and living costs all affect early-career professionals. Future opportunity must be supported by fair starting pay and regular salary progression.”

Playing catch-up

As section manager at Hays in Melbourne, Jasmine Ee sees a similar career progression model being implemented by larger accounting firms.

“Advancement is generally based on a combination of performance, achievements and tenure,” she says. “Graduates typically start with a graduate accountant role, before progressing through associate or analyst positions to senior accountant, assistant manager, manager and then, perhaps, more senior responsibilities.”

Depending on specialisation, qualifications and career path, accountants’ salaries may eventually exceed those of graduates in other industries. However, Hays' Salary Guide FY26/27 reports that, on average, it takes three to five years to close the initial pay gap. This aligns with the time companies generally allow for accountants to gain a professional qualification.

“A professional qualification can bring a significant increase in salary, as well as opening the door to higher paying roles,” says Ee.

Is there an alternative to higher salaries?

Starting pay isn’t the only consideration for graduates deciding on a career – so, what can employers do to increase the appeal of accounting?

“Any incentives need to provide genuine financial, professional or lifestyle value, rather than superficial perks,” says Alexander. “Benefits relating to career development can be particularly effective, such as full payment of professional qualification fees and professional memberships, paid study leave and protected time for examinations.”

She adds that other strong offers include six-monthly salary and performance reviews during the early career stages, and a clearly documented pathway from graduate to intermediate, senior and management positions.

“Rotations across audit, tax, advisory, financial accounting, commercial finance and analytics service lines and finance functions can also work as they broaden business experience, as does meaningful access to clients, stakeholders and senior mentors.”

Other possible incentives include flexible ways of working, wellbeing benefits and training in future-focused skills such as analytics, automation and AI.

“The strongest proposition is usually a combination of competitive pay, professional qualification support, rapid skills development and a healthy working environment,” says Alexander.

“Employers should also make the broader purpose of the role clear. Today’s graduates are more likely to be attracted to accounting when it’s positioned as commercial problem-solving and decision support, rather than just compliance and transaction processing.”

The appeal of a secure future

Despite the lure of higher salaries elsewhere, many graduates do continue to choose accounting as a career.

“Accounting remains a very secure and, in my opinion, recession-proof career,” says Ee. “It’s the backbone of every business – no organisation can exist without an accountant, finance manager or CFO. It offers a steady, predictable and achievable career progression, with milestones to aim for and qualifications you can obtain to further your knowledge.

“There are also opportunities to specialise in different areas, from tax and auditing to financial planning and business consulting.”

And, of course, accounting can also lead all the way to the boardroom, with pathways to finance leadership and executive roles. The priority now is to ensure the profession presents a competitive starting proposition to secure outstanding talent that will stay and enjoy the professional and financial benefits a career in accounting can offer.

Discover your pathway to the CA Program

CA ANZ offers multiple pathways into the CA Program, including options that allow people with non-accounting degrees or relevant work experience, and high school graduates who can’t attend university, to get to the starting line to undertake the CA Program.

Broadening access to the CA Program will help address the accounting skills shortage, increase diversity, equity and access to CA ANZ membership, and bring the CA Program in line with international best practice.

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