‘Illusionary’: Wages growth ‘not a slam dunk’ for the Albanese government

Bondi Partners Senior Advisor Peter McGauran says while this week’s announcement that wages grew by 4.2 per cent is a “trend in the right direction”, it is “not a slam dunk” for the Albanese government.

The Australian Bureau of Statistics announced on Wednesday that wages grew by 4.2 per cent during 2023 – the biggest wage rise since 2009.

“4.2 per cent, just ahead of the inflation rate of 4.1 per cent,” Mr McGauran told Sky News Australia.

“It’s illusionary though – 4.2 per cent is before tax, so you’ve got to tax off 30 per cent for most people.

“It doesn’t take into account the seven per cent plus mortgage rates.

“It’s a trend in the right direction, but it’s not a slam dunk for the government.”