Cold comfort for working families in wages data
Today’s Wage Price Index data provides little comfort for Australian families who have been smashed by Labor’s bad economic management.
While any increase to wages is welcome, today’s data is a drop in the ocean compared to the pain Australians are feeling.
Crucially, real wages for workings households are still going backwards – down 2.7% over the year, and 7.6% since Labor came to office.
Just like Labor’s broken promise on tax, the wages growth in today’s ABS figures barely touch the side of the pain Labor’s failure to manage inflation and the economy is inflicting on hardworking Australian families.
According to new analysis released by the Australian Financial Review, real household incomes are not expected to recover to their pre-pandemic levels until 2027, which is still well below the peak.
In the year to September 2023, Australian household incomes slumped 6.1% as a result of rising prices, rising taxes and rising mortgage repayments.
Labor’s failure to manage the economy has smashed family budgets.
Cost of living has been the number one topic discussed around kitchen tables, but it hasn’t been the priority at the Cabinet table.
Shadow Treasurer Angus Taylor said hardworking Australians are paying a high price for that.
“Australia has experienced the sharpest fall in living standards among peer countries.
“Hardworking Australians are paying the price for a distracted government that has failed to tackle the source of the problem, which is persistent inflation.
“The only way to ensure sustained real wages growth is a back to basics economic agenda. We need to grow the economic pie so everyone can have a bigger slice. But Anthony Albanese and Jim Chalmers think they can just cut up the pie differently.
“That is not responsible economic management and will only see the country continue to go backwards.
“The Albanese Labor government seems to think it can spin and spend its way out of the cost of living crisis.
“The only ‘solution’ the Prime Minister and Treasurer have so far offered, is to break their election promise on stage three tax cuts. It’s a band aid to a bullet wound.”
Shadow Minster for Employment and Workplace Relations Michaelia Cash said that the government's failures on energy, housing, tax and workplace relations are driving up the cost of living for all Australians.
“Business groups have warned that the radical changes to our workplace relations system will do absolutely nothing to improve Australia’s lagging productivity. Improving productivity is the only way we can have sustainable wage increases.
“The Albanese Government is making life more difficult for the job creators of Australia by imposing more regulation, complexity and ultimately costs. These costs will be passed on to consumers or result in the loss of jobs – or both,’’ she said.
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