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Wage growth

This Month

ACTU secretary Sally McManus said wage rises need to beat rises in rent and mortgage payments.

Union wage claims hit 6pc as inflation bites

Militant union ETU pushes for ambitious pay rises even as employers warn unions risk stoking further inflation.

Real wages won’t grow until 2027

The Reserve Bank forecast deals a blow to household budgets and the Albanese government’s claim of delivering above-inflation pay gains for workers.

January

Public service wages 

NSW public servants took home an extra $4000 each last year

Pay satisfaction in the state’s public sector is up after an average 4 per cent rise last year, sending the median salary to almost $105,000.

December 2025

Black Friday sales are being boosted by improved consumer sentiment, which has been driven by wages outpacing inflation.

Post-Christmas retail sales expected to hit $3.8b

The spend this year is expected to increase by 4.3 per cent from last year, according to projections by the Australian Retailers Association.

NSW Treasurer Daniel Mookhey.

Tax revenue surge saves NSW budget after $2.9b wages blowout

The Minns Labor government is preparing for an election in 2027 by winding down spending on mega-projects and promising no new metro lines after the Metro West.

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Labor leader Anthony Albanese appeared on Insiders on Sunday, repeating a favourite statistic of his Treasurer Jim Chalmers.

Albanese ‘misled’ public on wage growth

The prime minister touted eight consecutive quarters of real wage growth, but ABS data shows negative growth in the September quarter.

Treasurer Jim Chalmers.

Like a return to 2011: Wages going backwards as inflation rises

Economists and the Reserve Bank of Australia expect real wages to continue to worsen next year as the government grapples with inflation.

The economy is expect Wednesday’s release of gross domestic product figures to show the economy recovery from the pandemic building momentum.

Private sector wages soar 6pc, outpacing profits

The latest data suggests higher wage bills are reducing profit margins and could force businesses to pass their increased costs on to consumers.

November 2025

NSW Treasurer Daniel Mookhey

Wages blowout adds $800m to NSW deficit

NSW Labor wants to fight on fiscal restraint, but abandoning the wages cap and spiralling workers’ compensation costs are making its jobs harder.

Worker paid for three years after they quit in $295k payroll blunder

In a scathing report on public service accounting errors, the NSW Audit Office found that one agency kept paying 481 people after their employment ended.

Several banks have announced job cuts in recent weeks.

More inflation pressure as public sector wages outpace private

Despite flat wages growth in September, the RBA say that Australia’s productivity slump is pushing up labour costs and adding to inflationary pressures.

Paul Keating was speaking with John Laws when the then treasurer delivered his infamous “banana republic” warning.

Like Keating, Chalmers should use economic reality as impetus for reform

The warning delivered by then secretary to the Treasury John Stone in 1984 is an eerie experience. Forty years on, we face so many of the same challenges.

NSW Treasurer Daniel Mookhey delivers the 2025/26 NSW State Budget in the Legislative Assembly.

NSW dropping public sector pay cap adds budget pressure, warn experts

NSW has maintained its AA+ credit rating but above-inflation public sector wage increases are making fiscal restraint difficult

Public sector pay is up

Public sector wages bill tops $250b as consultants get the chop

Commonwealth public servants collectively took home 9.5 per cent more in 2024-25, while state employees got an extra 7.3 per cent, adding to debt concerns

RBA governor Michele Bullock doesn’t want to provide forward guidance, but comments on jobs and inflation suggest rates will be higher for longer.

Why the RBA is on alert but not alarmed about its big inflation miss

The Reserve Bank won’t be cutting interest rates any time soon after one of its worst forecasting errors on inflation since the 1990s.

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The budget’s forecast for public sector wages could be revised upward as departments cut costs elsewhere to make up for higher pay for public servants.

$841m public sector wage blowout to test APS spending limits

The public sector wage blowout is adding pressure to departmental budgets, prompting warnings that budget spending allowances may need to be adjusted.

October 2025

The government wants to increase supply of low- and mid-rise housing in Sydney and surrounding regions.

Dense cities boost pay, but will we need homes on the fringe too?

Assistant Treasury Minister Andrew Leigh spruiks denser cities, but the Urban Development Institute fears infill focus is slowing progress on housing targets.

RBA chief economist Sarah Hunter said that because of struggling productivity growth, the economy can sustain a lower level of wages growth.

RBA says Australians will have to accept lower wages growth

Chief economist Sarah Hunter says lagging productivity means wages could only sustainably rise at 3.2 per cent a year on average across the economy.

The strike threat comes as the Reserve Bank and Treasury have asked for powers to take over Armaguard if it is at risk of failing.

Cash crunch threat as Armaguard workers move to strike

The supply of cash across the east coast could come under threat as workers for the monopoly cash distributor consider strike action over wage freezes.

September 2025

Josh Lefers at his bar, Ballers Clubhouse in Melbourne, Victoria.

‘Another blow’: Rising labour costs squeeze firms, curb rate cuts

Business owners like Josh Lefers have been forced to pass on higher staff costs to customers, fuelling inflation and putting the RBA on high alert.