New data released by the ABS today shows that annual nominal wages continue to grow above three per cent under Labor.
We’re helping Australians earn more and keep more of what they earn with wages growth and tax cuts for workers and these figures show our polices are making a meaningful difference.
Annual wages are growing by at least three per cent in 14 of 18 industries.
Our predecessors never achieved this, and at best could only achieve three per cent in six industries for one quarter.
Annual wages have now grown above three per cent for 15 consecutive quarters.
This is the longest consecutive streak in more than a decade and a half.
Treasury expects this to continue, with the forecasts in yesterday’s Budget showing an upgrade in the outlook for wages.
There was not one quarter in the 35 quarters of the former Government when nominal wages grew above three per cent.
The wage price index grew 0.8 per cent in the March quarter 2026, to be 3.3 per cent higher through the year.
We already had an inflation challenge in our economy before the conflict, but the recent tick up in monthly headline inflation was driven by the conflict in the Middle East.
With inflation higher than we would like, annual real wages, as measured by the difference in growth in the quarterly wage price index and quarterly consumer price index, fell 0.8 per cent through the year to the March quarter 2026.
While we would have liked to have seen real wage growth, today’s result is better than what we inherited, and the Treasury is forecasting real wage growth to return next financial year.
And while there will of course be economic challenges, we face these from a position of strength.
Even with today’s figures annual real wages have grown for eight of the last ten quarters.
When we came to Government, real wages were going backwards 3.5 per cent and fell for the five quarters leading up to when we were elected.
Our economic plan is all about helping Australians earn more, keep more of what they earn and retire with more.
One of the best ways to help people with the cost of living is to boost wages for workers, and that’s been a big focus for the Albanese Government.
Wage growth was anaemic and real wages were going backwards when we came to office after the Liberals’ deliberate policy of wage stagnation and suppression but we’ve turned that around.
We’re acting to boost wages, close the gender pay gap, deliver workplace relations reforms and secure pay rises for some of the lowest paid workers in our community.
We’re providing tax relief to workers and delivering reforms to give more Australians the opportunity to own their own home by making our tax system fairer.
We’re delivering a new Working Australians Tax Offset which will provide a permanent annual $250 tax offset to all eligible Australian workers from 2027–28.
This builds on the legislated tax cuts still to come in 2026 and 2027 and $1,000 instant tax deduction already introduced by the Albanese Government.
At the same time, we’re helping to take the pressure off inflation in the Budget with smaller deficits, less debt and net policy decisions that improve the bottom line.
And we’re delivering a comprehensive productivity package, because we know higher productivity is key to higher wages and living standards over the long term.
Our Budget, our government and our economic plan is all about helping people with the cost of living and helping people get ahead while we make our economy more productive and resilient, and higher wages for working people is an important part of that.