I've just finished my first year in the 737 at Virgin Blue, having spent the previous 9 years at Atlantic Coast and Air Whisky. In terms of pay and conditions, it's infinitely better. There is far more respect for pilots from both the traveling public and the ground staff that I work with. There's also, dare I say it, still some of the old school mystic and glamour still attached to being a pilot here. I've never felt like the glorified bus driver, that I often felt in the US.
As far as pay is concerned, an FO at VB on the 737 will start on 100k, which goes up by 10k after the first 500 hours on type and 5% every year after that until 2000 hours. At that point it goes up 30k. Captains get double We get paid a salary for the first 71 hours each month and then $125 an hour for every hour over 71. Per diem doesn't exist, although we get paid allowances depending on how much of a day you're away from base. Essentially, if you have an overnight and start in the morning, you'll get $120 for the day. If you offer to work on a day off, it's a minimum of 5 hours of pay or whatever you work over that. So I can work a SYD-MEL-SYD on a day off and earn almost $700 for about 3 hours of block.
Considering that the Australian dollar is now on a parity with the US dollar that may sound great but it is far more expensive to live here. It's probably about double for the basics; food, rent, cell, etc.
You cannot compare the US to Australia. Even though Australia is the same size as the US, there are only 20 million people and possibly 8 main cities. However, the competition is intense and just as cut throat as the States. The difference is that the traveling public still expect a certain level of service and are quite happy to go elsewhere if they get treated like cr@p.
There is no government subsidizing of any airline here and you only have to look at the demise of Ansett, to see that the Australian government is quite happy to let a badly run business go under.