Australian Wages Set to Increase Under Labor Government
Just ahead of next month’s federal election, Prime Minister Anthony Albanese has committed to increasing Australian wages for the nation’s lowest paid workers.
"We want the Australian people to vote for higher wages and lower taxes, not the Coaltion's plan of lower wages and higher taxes," Albanese said.
Currently, the Albanese government is pushing for an increase in real wages above the rate of inflation. Real wages account for inflation. If inflation rises faster than wages, your real wage actually goes down.
According to a report from news.com.au, Albanese said “not leaving people behind” is a core value of the Labor government.
Wages in the Current Economic Landscape
Headline inflation was at 2.4 per cent in December last year, with underlying at 3.2 per cent. That's just above the Reserve Bank’s target of 2-3 per cent.
Labor said that increases in award wages need to be contingent on inflation returning to the target band. Furthermore, that needs to be done in a sustainable way. Such an outcome is fair and responsible, according to Labor.
Inflation is now at less than a third of its peak. In addition to a low unemployment rate, and interest rates are starting to come down. A key contributor to growth is now economic rebound, Labor said.
Labor and Opposition Perspectives on Australian Wages
In regards to who has benefitted from federal efforts to boost wages in the past, Albanese pointed to early childhood educators and Senior care workers. He cited the past 28 per cent wage increase for aged care workers and the 15 per cent increase for educators. Albanese claimed that if wages hadn’t been raised in those industries, there wouldn’t be such a workforce.
In response, Opposition Leader Peter Dutton said the Coalition is also supportive of an increase in Australian wages for the lowest paid workers. However, he claimed that wages have gone down under the current government.
Sources:
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