Not only does an MBA give you crucial leadership skills and the expertise to run a successful business, but it also gives you access to a wider professional network. So, it’s no surprise that employers place MBAs in high regard when they see them on a resume.
In spite of this, however, there is an associated cost when it comes to MBAs, which can be a real deterrent for many people.
Maybe you’re hesitant to embark on an MBA because of the cost. Perhaps you simply want to know what the cheapest MBA in Australia is or understand what a post-MBA salary looks like. Either way, this guide will help you answer whether or not an MBA is worth it for your circumstances.
Weighing up if an MBA is worth it in Australia
There is so much that goes into deciding the right MBA for you. Does the MBA offer the specialisation you would like to develop? Is the delivery format flexible so you can balance work and other commitments?
Then there’s the question of whether MBA study is the right choice for you in the first place. Will you get a return on the investment you're making?
When it comes to the question of cost – from how much an MBA is worth to the salary increases you’re likely to experience after graduating from the course – we cover it all below, step by step.
How much does an MBA cost in Australia?
The average MBA cost in Australia is approximately $60,000 in 2024. This average covers both traditional on-campus MBAs as well as the more flexible online MBAs. Surrounding this average is a wide range of costs.
The cheapest online MBA costs in Australia start at approximately $16,000 and can be as high as $90,000 or more.
The most expensive MBA in Australia is a traditional MBA on campus, which can cost up to $112,500. This is more than the cost of the most expensive online MBA, so if cost is a concern, studying online will give you the most cost-effective MBA option.
In deciding whether the costs of these MBAs are right for you, there is something else to consider. With an online MBA, you pay for each unit as you complete it. The standard time allocated to completing an online MBA is two years as a part-time student.
Depending on your prior studies and experience, you may also be granted advanced standing for certain units. This will help reduce the MBA cost and timeframe required.
Why are MBA fees in Australia so high?
As we all know, cost is relative. What one person considers to be beyond their budget may well be fairly reasonable to the next.
If you’re wondering why MBAs are so expensive, it’s important to look at what goes into the cost of an MBA.
An MBA isn’t just a piece of paper. It could be the springboard to propel your career to new heights, help you change careers completely or be the boost your startup needs to scale and grow. Whatever its purpose, it will add real value to your professional life.
When you pay for an MBA, you’re not only receiving the above benefits. You’re also paying for the expertise and knowledge of highly skilled:
- academic teaching staff
- administrators
- support staff
- researchers supporting the development of the program
- guest lecturers and industry titans
MBA fees in Australia also support the infrastructure and resources required to run the program. For a traditional on-campus MBA, these costs include the physical space used for lectures and related tuition. For online MBAs, universities will invest in advanced digital infrastructure in order to support the program.
How much more do MBA graduates earn?
Cost is a consideration in deciding to do an MBA. But it’s wise to also consider the potential additional income you’ll earn once you’ve gained your new qualification.
According to a global 2023 report, 69 per cent of employers think that employees who have graduate management degrees, which includes MBAs, are paid more in their companies compared to others.
Closer to home, Australian employees who have a postgraduate coursework degree, including MBAs, earned a median salary of $120,000 per year in 2023. Those with an undergraduate degree in the same field earned $69,200 in the same period.
MBA graduate salaries also allow you to earn higher than the average Australian worker. According to the Australian Bureau of Statistics, the average weekly earning of an employee in Australia is $1,975.80, which equates to $102,741.60 a year.
Whether you’re completing an MBA to scale a business or because you want to learn how to become a CEO, it’s clear that there are financial benefits to consider.
Cheapest online MBA
As you’ve probably already read, there’s more to an MBA than pure price considerations. As we’ve come to see, it’s not always a direct comparison.
Rather than thinking about the cheapest MBA in Australia, it might actually be best to think about it in terms of value.
So, what are some ways you can determine value?
The first is to break it down to look at the number of units and the cost for each. If you’re happy to complete the MBA over a longer period of time, you may be able to spread the cost of the MBA over time. This can help reduce the annual fees and also give you more time to complete your degree.
If value is important, consider an online MBA, which is becoming increasingly popular and often has lower costs. Online MBAs also have other benefits that can impact the overall cost of studying and the value of the course, including flexibility.
The flexible nature of online MBAs makes it easier to balance your studies with work. You don’t need to take time off to attend lectures as the course materials are all available online. Despite this, online MBAs are just as respected in the business world as traditional MBAs.
MBA scholarships are also available in Australia for various courses and you may be eligible to apply. To find out more, follow our application process below.
How to apply for an MBA
Costs aside, once you’ve decided to study, you need to know how to apply for an MBA. Here are the basics of what you need to know:
- Be clear on your motivations for studying an MBA. That will help you decide which MBA is most suitable and valuable for you.
- Research your course so that you’re familiar with the offering before you apply.
- Contact the university to speak with the admissions officers. They will assist you in understanding their application process, fees and units of study.
- Prepare your documents, including transcripts from past studies. You’ll need these to show that you meet the entry requirements.
- Refresh your resume. The university will consider your professional experience as part of your application, so you need to convey that in your resume.
- If required, you’ll also need to write a motivation essay. Get feedback from trusted advisors to refine your message.
- Finally, think about how you can ask a trusted associate to provide you with a professional endorsement or letter of recommendation.
Take the next step in your career
If you’re considering an MBA in Australia, it’s essential you understand the costs and other factors that will help you make the right decision. Ready to kickstart your postgraduate journey? Explore and compare MBA programs offered by different universities to help you determine which course best fits your professional circumstances and goals.