SOLID WAGES GROWTH IN JUNE QUARTER

JOINT MEDIA RELEASE - MINISTER TONY BURKE & TREASURER JIM CHALMERS

New figures today confirm solid wages growth under the Albanese Labor Government.

The Wage Price Index rose 0.8 per cent in the June quarter, to be 3.6 per cent higher through the year, according to data released by the Australian Bureau of Statistics.

This is the first time in three years that quarterly wages have kept up with inflation – and much better than the fall of 1.5 per cent in the March quarter 2022. While there will be volatility in the next few quarters, Treasury expects annual real wages to return to growth in early 2024.

We welcome solid wages growth, after our predecessors spent a decade deliberately suppressing wages.

Since coming to Government, wages have been growing at an annualised average of 3.6 per cent, compared to 2.1 per cent for our predecessors.

The Albanese Government’s economic plan is all about getting wages moving in a sustainable way. This helps Australian workers earn enough to provide for their loved ones and get ahead.

We have helped secure pay rises for minimum and award wage earners, funded a wage rise for aged care workers, and changed the law to support secure jobs and better pay. The Government is funding more TAFE and university places and investing in strategic industries to help deliver well-paid jobs into the future.

While wages are rising, we know Australians are still under the pump from cost-of-living pressures and higher interest rates.

Securing real wages growth requires getting inflation under control – that’s why the Albanese Government’s number one priority is dealing with the inflation challenge and providing cost-of-living relief.

It also involves closing the loopholes that undercut wages - and that's what our next workplace relations changes will do.

Cost-of-living relief is being rolled out right now and will flow over the coming months.

Our cost-of-living package will directly reduce inflation by three quarters of a percentage points this year. It will also help deliver annual real wage growth sooner for households.

The Albanese Government is focussed on helping Australians through these difficult economic times, by dealing with the inflation challenge and laying the foundations for future growth

ENDS