New data released by the ABS today shows that real wages have now grown for four consecutive quarters under the Albanese Labor Government.
Under Labor, people are earning more and keeping more of what they earn. The Wage Price Index grew 0.8 per cent in the quarter to be 3.5 per cent higher through the year. Real wages grew 0.7 per cent through the year to the September quarter 2024.
This is the strongest rate of real wage growth in four years. In stark contrast, real wages were going backwards by 3.4 per cent, and went backwards in the five quarters leading up to the last election. Our predecessors never supported an increase to the minimum wage.
The fact that Australians’ real wages have been growing consistently for a year is welcome, but we know that people are still under pressure.
That’s why the Government’s primary focus is rolling out responsible cost of living relief – a tax cut for every taxpayer, energy bill relief for every household, cheaper medicines, cheaper child care and cutting student debt.
When we came to office, inflation was much higher and rising, now it is lower and falling. Wages are growing and inflation is falling. We inherited inflation of 6.1 per cent, and it is now 2.8 per cent - back in the Reserve Bank’s target band for the first time since 2021.
The Liberals want people working longer for less, which is why wages growth stagnated on their watch and why the Government inherited falling real wages growth when we came to office.
While wage growth has moderated, it remains stronger than at any point during the former Coalition government. The combination of moderating inflation and stronger and more sustainable wages growth is a good thing for Australians’ pay packets.
This is more evidence that there is no wage price spiral in our economy. Since we came to office, nominal wages have been growing at an annualised average of 3.8 per cent, almost double the 2.2 per cent recorded under the Coalition.
A million jobs have been created since the election – the first time this milestone has been achieved in a Parliamentary term, and faster jobs growth than any major advanced economy.
Our cost-of-living tax cuts have been rolling out since July 1, ensuring that all 13.6 million taxpayers keep more of what they earn. The Government’s priority is tackling the inflation challenge while rolling out responsible cost of living relief, along with better, safer work conditions.
These policies are contributing to strong and sustainable wage growth for workers. ABS data shows that, last quarter, headline inflation was ½ a percentage point lower due to Commonwealth and State Government cost-of-living relief.
We’re acting to boost wages and close the gender pay gap – delivering workplace relations reforms and securing pay rises for some of the lowest-paid workers in our community.
The Government also has a clear and ambitious agenda to boost productivity growth, including through our competition reforms, plans to modernise markets and our investments in skills and human capital, which will help deliver strong and sustainable wages growth over the medium term.
Our priority is to help ease cost of living pressures through strong and sustainable real wage growth, rolling out a tax cut for every taxpayer, energy bill relief for every household and cutting student debt.
https://ministers.dewr.gov.au/chalmers/four-quarters-annual-real-wage-growth-under-labor
