October 2022
Inflation is soaring and real wages are plummeting
On Wednesday the latest inflation figures showed that in the 12 months to September prices across Australia grew by 7.3% – the fastest rate since 1990.
The Budget shows the big hole in Real Wages
The Government acknowledges the need to get wages growing again, but the budget reveals just how big the task is
Worrying signs of weak wages growth
Families change but the same problems remain
The latest data from the Bureau of Statistics on families shows that more than ever before couples with dependants are both working.
With a global recession looming the cure of inflation looks to be worse than the disease
This week the IMF released its latest World Economic Outlook. And the outlook is dire. Economic growth around the world was downgraded with recession-like conditions being predicted for many advanced economies including the USA, UK and much of the EU.
After the Stage 3 tax cuts only the top 10% highest paying occupations will be better off
The Stage 3 tax cuts will only balance out the tax increase from the end of the low-middle income tax offset for those earning above $97,000
Low and middle income earners about to be hit with a massive tax increase
The end of the Low-Middle Income Tax Offset will deliver a tax increase of up to $1,500 for people earning under $90,000 – a 3% tax rise for someone on $50,000
Members of Parliament among those who benefit the most from the Stage 3 cuts
Taxation data shows which occupations will get the biggest cuts – and how few people work in them
Stage 3 tax cuts do little to correct bracket creep except for the wealthy
If you wanted to address bracket creep, the Stage 3 tax cuts would be the worst way to do it.
Latest data shows all industries have wages growth well below inflation
Enterprise agreements in June averaged just 2.8% annual wage growth – well below inflation.
September 2022
The UK shows how bad the Stage 3 tax cuts will be
This week the UK government introduced massive high-income tax cuts – cuts that are not even as bad as the Stage 3 tax cuts here in Australia. And the reaction by the market was brutal. Investors saw the tax cuts for what they were – a redistribution of national income from the poorest to the wealthiest, that provided no economic growth. As a result the value of the UK Pound plunged.
Fair Work Commission data shows that unions deliver higher wages
Enterprise bargaining agreements deliver better wages, but union backed ones deliver the best.
They didn’t cause the inflation, but workers are expected to cure it
Last week before the House Economics Committee, the Governor of the Reserve Bank made it clear that the current rise in inflation has nothing to do with wages growth. And yet he also made it clear he expects workers to bear the brunt of the cost that comes from slowing inflation.
The latest data shows just how bad housing affordability is
Since the Reserve Bank began raising interest rates in May, the housing market has very much come off the boil.
A record number of people are working more than one job
The past 2 years has seen a surge in the number of people working multiple jobs
Ten years of productivity growth, but no increase in real wages
Ten years of productivity gains has resulted in a zero increase in real hourly wages
The GDP figures show the ongoing shift of the national income to profits
The June quarter GDP figures released by the Bureau of Statistics showed that over the past year the economy grew a seemingly strong 3.6%.
What happened at the Job Summit?
This week on Follow the Money Ebony is sitting down with Greg Jericho to discuss the Jobs Summit: what happened, why was it needed, and are we going to get any jobs out of it? This was recorded on Tuesday 6th September 2022 and things may have changed since recording. The Australia Institute // @theausinstitute
The share of GDP going to workers hits a record low
The latest GDP figures show more than ever before workers are getting less than their fair share
Profits continue to grow faster than wages
Profits continue to soar ahead of wages
The PBO reveals just how much the Stage 3 tax cuts favour the wealthy
The Stage 3 tax cuts, which will essentially create a flat income tax system, have always been clearly biased towards high-income earners. For those earning over $200,000, the tax cuts represent a 4.5% cut compared to just 0.6% for someone on the median income of $60,000. But this week, the Parliamentary Budget Office has released costings that detail just how skewed the allocation of money is to the richest in our society.
August 2022
New data shows how the Stage 3 tax cuts massively favour the wealthy
77% of the benefits of the Stage 3 tax cuts will go to the richest 25%
Real wages have not kept up with productivity
When you count earnings per waged hours it is very clear that real wages have not kept up with productivity
Market power costs consumers, workers and the whole economy
For most of the past 40 years whenever the discussion turns to the need to lift productivity, invariably the conversation is dominated by business groups and various media commentators who suggest the solution is more labour market flexibility. Just a bit more flexibility and productivity will improve!
Average full-time earnings rose just 1.9% in the past year
Average annual earnings growth slowed over the past 6 months while real average earnings plummeted
Underutilisation lowest since 1982; wages growth highest since…. 2014
Underutilisation is at 40 year lows; wages are not even at 10 year highs
The biggest real wages fall on record
The latest wages price index figures from the Bureau of Statistics reveal just how far workers ability to purchase items with what they earn has fallen.
Real wages plunge to 2012 levels
In the past year real wages fell so far they are now back to 2012 levels.
Jobs in air transport remain down even as Australians get back travelling
The lack of workers is the major reason for the flight delays and airport wait-times. People are back travelling, but the air travel workers are not.
The latest taxation statistics reveal the massive gender pay gap across the whole economy
The 2019-20 taxation statistics released this week by the ATO provide a plethora of data that reveals with precision the salaries of people by location, occupation age and importantly, gender.
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