Stronger wages growth but still short of inflation

Australian Treasury

ABS data released today shows the Wage Price Index rising 2.6 per cent in the year to June.

We are pleased to see wages growth picking up, but it is still well short of inflation.

There is no sugar‑coating the fact that real wages for Australians have gone backwards.

The harsh reality is that even with this stronger outcome, real wages growth will take some time to return.

Thanks to the wasted opportunities, wrong priorities and wilful neglect of the previous government, real wages growth averaged just 0.1 per cent a year over the past decade.

The key difference now is Australian workers have a government with an economic plan to boost wages, not deliberately undermine them.

One of the very first acts of the Albanese Government was successfully arguing for the minimum wage to keep pace with inflation, which helped around 2.8 million Australians.

We followed this up last week with our submission to the Fair Work Commission that unequivocally supported a wage increase for aged care workers.

We’re also working hard to deliver our commitments to lift the speed limit on the economy, reduce the cost of living and get wages moving again.

It’s why we’re making meaningful investments in cheaper childcare, cheaper and cleaner energy, advanced manufacturing, skills and fee‑free TAFE.

Wages growth will be a key topic of discussion at next month’s Jobs and Skills Summit in Canberra.

The Albanese Government is committed to bringing together people at the Summit to find common ground to address some of the biggest challenges facing our labour market and economy.

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